The stabilized exit refinance for a multifamily development can drift substantially from the model assumptions underwritten for construction debt. At the September 28 close, the 5-year Treasury was 5.06% and the 10-year was 5.24%. If the model’s rate sensitivities assumed a lower index, the same stabilized NOI may now support materially less debt at the required DSCR. Debt yield requirements can further constrain proceeds. That can leave a gap against the construction loan payoff and the planned preferred equity redemption or JV equity buyout, even when the project meets its operating projections. If permanent debt sizes short, a debt fund that can provide the senior loan and underwrite a B-piece in-house may offer a way to increase proceeds. Depending on the property’s cash flow and the equity terms, that structure could fund the construction payoff and some or all of the planned equity takeout without a sponsor cash contribution at closing. If your construction loan exit is approaching, send me a message and I will size the available financing against the full capital stack and determine how the modeled takeout is still executable or alternative strategies.

A hawkish Fed reset rate-cut expectations and pushed fixed-rate CRE borrowing costs higher, while floating-rate capital held steady. The September 1st edition of CRE Debt Market Sentiment breaks down what it means for CRE borrowers and investors.

Agencies, life companies, and CMBS origination are all pricing off a materially higher risk-free rate, not a repriced view of credit risk. The cost of capital has now reset to a higher, more durable plateau.

Today, we celebrate 250 years of American independence. The Fourth of July is more than a commemoration of our nation's founding. It is a reminder of the enduring principles that have shaped generations of Americans: liberty, personal responsibility, free enterprise, and the opportunity to build something greater than ourselves. As someone who works alongside entrepreneurs, business owners, real estate investors, and communities across the country, I have the privilege of seeing those principles put into practice every day. The willingness to take calculated risks, invest in the future, create jobs, and strengthen local communities is part of the American story. On this historic 250th Independence Day, I hope we all take a moment to reflect on the sacrifices that secured our freedom, express gratitude to those who continue to defend it, and recommit ourselves to building a stronger future for the generations that follow. Wishing everyone a safe, meaningful, and memorable Independence Day. Happy 250th Birthday, America. Happy Independence Day!

𝗧𝗵𝗲 𝗦𝗕𝗔 𝗷𝘂𝘀𝘁 𝗺𝗮𝗱𝗲 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗺𝗲𝗮𝗻𝗶𝗻𝗴𝗳𝘂𝗹 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝘁𝗼 𝗮𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗶𝗻 𝘆𝗲𝗮𝗿𝘀. Effective July 4, 2026 eligible borrowers will be able to combine SBA 7(a) and 504 financing for up to $10 million in cumulative SBA-backed exposure. Previously, combined exposure was effectively constrained by a shared $5 million cap. 𝗪𝗵𝗮𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝗱 Borrowers can now access:   • up to $5MM through SBA 7(a)   • plus up to $5MM through SBA 504 All within the same overall capital structure. 𝗪𝗵𝘆 𝘁𝗵𝗶𝘀 𝗺𝗮𝘁𝘁𝗲𝗿𝘀: For acquisition buyers, especially those acquiring operating companies with owner-occupied real estate, the old framework created a structural bottleneck. 𝗔 𝗯𝘂𝘆𝗲𝗿 𝗺𝗶𝗴𝗵𝘁 𝗻𝗲𝗲𝗱:   • 7(a) proceeds for goodwill, working capital, partner buyouts, and acquisition costs;   • 504 proceeds for real estate, equipment, or expansion financing But both programs were competing against the same aggregate SBA exposure limit. As a result, many otherwise strong lower middle-market transactions required:   • additional equity   • seller financing   • mezzanine debt   • or migration into conventional structures earlier than necessary. 𝗧𝗵𝗶𝘀 𝗺𝗮𝘁𝗲𝗿𝗶𝗮𝗹𝗹𝘆 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 𝘁𝗵𝗲 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗶𝗻𝗴 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆 𝗳𝗼𝗿:   • manufacturing businesses;   • industrial owner-users;   • logistics and transportation companies;   • equipment-intensive operators;   • and acquisition buyers in the $3MM-$10MM enterprise value range. 𝙄𝙢𝙥𝙤𝙧𝙩𝙖𝙣𝙩𝙡𝙮, 𝙩𝙝𝙚 𝙨𝙩𝙖𝙣𝙙𝙖𝙡𝙤𝙣𝙚 𝙎𝘽𝘼 7(𝙖) 𝙘𝙖𝙥 𝙞𝙩𝙨𝙚𝙡𝙛 𝙨𝙩𝙞𝙡𝙡 𝙧𝙚𝙢𝙖𝙞𝙣𝙨 $5 𝙢𝙞𝙡𝙡𝙞𝙤𝙣. The change is the ability to separately layer 504 financing on top of it within the same borrower structure. Feel free to reach out if you would like to evaluate how the new framework could impact your financing strategy. sba.gov/article/2026/05/18/s…

𝗦𝗺𝗮𝗹𝗹 𝗯𝗮𝗹𝗮𝗻𝗰𝗲 𝗻𝗼𝘁𝗲-𝗼𝗻-𝗻𝗼𝘁𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴: A powerful niche more brokers and private lenders should be leveraging. At INSIGNIA, we’ve been arranging a growing volume of note-on-note financing for small balance loans (under $2MM) this year. First position seller financed notes and private money loans are eligible for note-on-note financing. Wraps and junior liens are not eligible. Why bring us your note-on-note opportunities? ✅ Fast approvals and closings ✅ No personal qualification ✅ No appraisals required ✅ Flexible, common sense terms This structure is ideal for investors or private lenders who own debt and are looking to unlock value, reposition, or create liquidity without jumping through the traditional commercial lending hoops. For brokers, this is an underrated niche opportunity:   • Less competition   • Fast execution   • Less commoditization If you’re a broker looking to expand your toolbox, a private lender, or an investor sitting on notes and looking for creative financing, this is worth a conversation. Curious how note on note deals are getting structured in today’s market? Comment or DM me, I’m happy to share what we’re seeing.

𝗜𝗹𝗹𝗶𝗻𝗼𝗶𝘀 𝗦𝗕𝟯𝟱𝟬𝟰: A Shift in How Rent Impacts Tenant Credit Illinois Senate Bill 3504 may be a meaningful shift in the landlord-tenant dynamic. If passed, the bill would require qualifying landlords to offer tenants the option to report on-time rent payments to a national credit bureau. This is strictly opt-in and positive-only reporting, meaning only timely payments count toward credit history. 𝗞𝗲𝘆 𝗽𝗼𝗶𝗻𝘁𝘀:   • Applies broadly to professional landlords and multi-property owners, even if individual buildings are small   • Exempts true small-scale landlords (single property, ≤15 units, non-corporate ownership)   • Requires formal disclosure + written tenant authorization before any reporting   • Allows a limited fee structure, capped at cost + $5/month What's your take on SB3504 and do you see this as positive, negative, or neutral as a landlord?

Agency financing is exceptional for certain situations, but it is no longer the automatic best execution for every multifamily refinance or acquisition. Select lenders are competing aggressively for well-positioned multifamily opportunities, often delivering materially stronger leverage and cash flow flexibility than many sponsors expect. Recent executions and quotes include: • Pricing at 5-Year UST + 200 bps • Full-term I/O • 5, 7, and 10-year fixed terms • Loan sizing closer to 7.50% DY • Nonrecourse options Capital is not universally loose, but liquidity is returning for sponsors with a well-positioned deal, durable cash flow and a clear story. If you are evaluating a refinance, recapitalization, or acquisition let's talk.

Too many sponsors come to market focused on rate and prepayment, missing what actually drives the outcome and underestimating how debt structure and covenants shape the success or failure of the investment. Debt terms are a function of overall risk and sponsor creditworthiness, not simply a negotiation point. Lenders evaluate the durability of cash flow, sponsor quality, liquidity, and how the deal performs under stress before pricing and terms enter the picture. Mispositioning a deal in the market or cycling through poorly aligned intermediaries costs time, erodes credibility, narrows the lender universe, and ultimately leads to suboptimal execution, if not a viable outcome at all. Sponsors who approach the market with a clear understanding of structure, risk, and expectations consistently achieve stronger outcomes. One of the most effective ways to do that is by aligning early with the right capital advisor and approaching the process with a disciplined, well-prepared strategy.

Geopolitical tensions & inflation pushing home mortgage rates up. Record $1,236 rent-vs-buy affordability gap boosting multifamily demand & renter retention. Existing home inventory rising, but construction costs up 7% YoY. Complex market dynamics. For investors, supply constraints + strong rental demand provides compelling long-term outlook.