Capital Minute
By: Zach Koucos and Chris Collins, Sunstone Capital Advisors
With the fourth quarter rapidly approaching, the window to secure capital and lock in terms for a 2026 closing is beginning to narrow. Lenders are working to hit their annual origination targets, while borrowers are eager to lock in rates, complete acquisitions before tax deadlines, or execute year-end refinances. Processing a loan transaction, whether through Agency programs (Fannie Mae and Freddie Mac), Life Insurance Companies, bridge lenders, CMBS, or regional banks, requires a multi-step execution with strict timing.
Why Timing is Everything Right Now
Waiting even a couple of weeks to move a deal forward can derail a year-end closing target:
- Vendor Capacity: Appraisers, environmental engineers, and survey teams fill their schedules quickly. Late submissions get pushed to the back of the queue.
- Holiday Deadlines: Thanksgiving and the December holiday season compress the final quarter into essentially seven working weeks, creating administrative dead zones.
- Capital Deployment Caps: Lenders with remaining allocation are racing to place capital, but once their capacity or processing bandwidth is maxed out, deals get pushed into Q1.
Taking Control of the Execution
For sponsors and borrowers aiming to close before the ball drops on New Year’s Eve, urgency is the primary strategy. Signing term sheets and moving loans under application immediately ensures priority positioning in lender pipelines, and locks in third-party vendor schedules before the late-season rush hits its peak.
In multifamily lending, the end of the year isn’t December 31st, it’s the moment your application hits the underwriter’s desk. The clock is ticking; getting signed applications in motion today is the single best way to ensure your deal gets across the finish line on time.
Financing Landscape Summary
| Debt Source | Average Rate Range | Max LTV | Key Strategic Fit |
| Fannie Mae / Freddie Mac | 5.6% – 6.7% | Up to 80% | Primary capital source for stabilized Class A/B properties. |
| Life Insurance Companies | 5.8% – 6.5% | 65% – 75% | Top-tier credit and pricing for Class A/B acquisitions and refi’s. |
| Banks | 6.2% – 7.2% | 60% – 70% | Relationship-driven debt; conservative underwriting and recourse structures. |
| CMBS / Conduits | 6.6% – 7.5% | 70% – 75% | Non-Recourse, securitized permanent fixed rate debt for wide-ranging profiles. |
| Debt Funds / Bridge | 6.7% – 8.2% | Up to 80% | Short-term liquidity for lease-up, repositioning, or debt workouts. |
Sunstone Capital Advisors delivers debt and equity capital solutions across commercial real estate, with a specialized focus on the manufactured housing and RV community sector.
Please contact Zach Koucos and Chris Collins to assist with your financing needs.
ZACH KOUCOS CHRIS COLLINS
Exec. Managing Director Exec. Managing Director
(619) 248-9738 (858) 945-0199
zkoucos@sunstonerea.com ccollins@sunstonerea.com
