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Background

Guardrail Finance is both a financial intermediary for multifamily and commercial real estate loans and a Sponsor of real estate equity syndications.

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As we move through 2025, middle market multifamily and commercial real estate faces a financing landscape that’s not short on capital, but lenders are applying sharper scrutiny than we've seen in years past.

If you’ve got maturing loans on your balance sheet, or are eyeing new acquisitions or refinances, now is the time to act strategically.

The Good News: Liquidity Still Exists​
Despite headlines of market uncertainty, there is still substantial liquidity in the system. Debt is not scarce. The Agencies, life companies, debt funds, regional banks, credit unions, and CMBS originators are still lending—just more selectively.

In fact, according to the Mortgage Bankers Association, commercial/multifamily mortgage debt outstanding rose to $4.7 trillion in Q4 of 2024, marking a 4.3% year-over-year increase. This signals that capital is out there—but it’s being deployed carefully.

The Challenge: A Wall of Maturities​
2025 is a year of reckoning for many owners. According to Trepp, over $659 billion in commercial real estate debt is scheduled to mature in 2025, with a significant chunk of that tied to middle market multifamily and office assets.

That volume alone has lenders tightening underwriting standards and prioritizing sponsor strength, asset quality, and market fundamentals. Debt coverage ratios, LTV thresholds, and reserve requirements are all under the microscope.

Lenders Want a Story​
It's no longer enough to rely on in-place cash flow and clean rent rolls. Lenders are also asking:

• What’s the upside story?
• Is the borrower committed (cash-in refi)?
• How resilient is this location?
• What's the plan if NOI softens?

And that’s why going out to a broad, competitive lender market is not just smart—it’s essential. A single bank or lender may not give you the full picture, or may exit certain asset classes entirely (as we’ve seen recently with some regional banks backing away from office and value-add multifamily).

Case in Point​
We are helping a number of borrowers on refinances. In many instances, we are seeing incumbent lenders requiring significantly lower LTVs and more stringent DSCRs—terms that in some cases would also require the borrower bringing in significant fresh equity.

By running a full market process, we are sourcing multiple term sheets from various lenders that are offering better LTVs and DSCRs than the incumbent lender, and some offering flexible interest only (IO) terms.

What This Means for You

If you’re:
✅ Facing a loan maturity in the next 12–24 months
✅ Looking to recapitalize an asset with increased equity
✅ Exploring acquisitions but unsure where pricing meets capital availability

…this market requires a thoughtful, strategic approach.

The most successful borrowers in 2025 will:

• Cast a wide net. Don’t assume your last lender will remain as your current lender.
• Tell a strong story. Position your asset and your vision effectively.
• Know where you stand. Pre-underwrite your deal to see what the market will bear.

The Bottom Line:​
Debt is not gone—but you need more than a single call to your banker to secure the best terms.

I’m working closely with sponsors across the country to help them navigate this environment—sourcing competitive terms across many lenders, from banks to private credit to agency and life companies.

Let’s talk about your strategy for 2025. Whether it’s a refinance, acquisition, or just preparing for a maturity down the road, a proactive approach can save you time, money, and unnecessary risk.

The debt market may be cautious—but opportunity still favors the prepared.

📧 Email me today to discuss how we can finance your acquisition or upcoming refinance.​

Best regards,
Robert Newstead

Navigating the Market with Guardrail Finance

At Guardrail Finance, we specialize in arranging financing on behalf of clients and in syndicating real estate investments on behalf of investors to help you capitalize on opportunities in multifamily, affordable housing, medical office, and industrial properties.

​Contact Guardrail Finance to assist with arranging your Multifamily & CRE Financing​

​Partner with Guardrail Finance to unlock opportunities in workforce housing, medical office, NNN, and industrial real estate​

Recent Posts From Guardrail Finance

Click the following link to go to our article on LinkedIn called Unlocking Real Estate Investment Opportunities Through Crowdfunding​

Click the following link to go to our article on Medium called How to Position Your Property to Attract Competitive Capital Sources​