The Mortgage Bankers Association today released a report detailing $345 billion in commercial/multifamily loans closed during 2005, up significantly from the previous year.
This report, the “2005 Commercial Real Estate/Multifamily Finance: Annual Origination Volume Summation,” surveyed 125 top commercial/multifamily finance firms and compiled origination volumes across different roles, investor types, property types, and finance structures. The $345 billion in closed loans represents a 49.9 percent increase over 2004.
“This report sets a firm base for origination activity during 2005 and serves as a valuable indicator of overall market size and for understanding the composition of the commercial/multifamily market,” said Doug Duncan, MBA’s chief economist and senior vice president of research and business development. “Thanks to the participation of an extensive and diverse group of leading lenders, MBA is able to release this comprehensive report that covers institutional origination activity during the record-setting 2005 calendar year.”
In addition to the $345 billion of closed loans tracked, firms reported $378.6 billion in direct originations during 2005 — loans on which firms worked directly with the borrower and either closed the loan in their own name or worked with a lender to close the loan. Firms intermediated $114.2 billion during the year while the report captured $318.1 billion in originations for third parties — loans on which firms served as an intermediary or closed the loan with the intent of selling it to a third party.
According to the MBA report, multifamily owned the largest share of originations among property types. The CMBS conduit category was the leading investor type. Totals for all property and investor types — along with intermediated and direct lender totals — are available in the full report for sale at http://store.mortgagebankers.org/AOIDetail.aspx?subcategory=Market+and+Research+Data&category=PRODUCTS.
The Mortgage Bankers Association, based in Washington, D.C., is a national association representing the real estate finance industry.