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Top 5 Commercial Real Estate Lenders in New York City
The largest lenders in the city originated roughly $3.8 billion in financing in August 2022.
Image by Adeolu Eletu from Unsplash.
A Look at the Top NYC Lenders in August 2022
With record low interest rates over the past year, commercial real estate lending was a major source of growth for banks. However, the change in macroeconomic conditions, due to inflation and rising rates, is expected to slow down demand for commercial mortgages.
The Mortgage Bankers Association projects overall commercial and multifamily lending and borrowing to drop to $733 billion this year, down 18% from the $891 billion recorded in 2021. Despite this notable drop, MBA anticipates that lending will rebound in 2023 to $872 billion.
Taking into account the current economic fundamentals, we looked at commercial real estate lending activity in New York City. The largest lenders in the city closed roughly $3.8 billion in financing at the end of the summer. To identify our top five, we analyzed mortgages of at least $10 million recorded during the month of August, excluding those lenders with only one major deal. The resulting list can be seen below.
NYC’s Top 5 Commercial Real Estate Lenders
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Rank | Lender | Origination Volume (August 2022, $MM) |
|---|---|---|
1 | JPMorgan Chase | $222.0 |
2 | Wells Fargo | $176.4 |
3 | Bank of America | $170.7 |
4 | Santander Bank | $134.0 |
5 | Goldman Sachs | $111.5 |
5. Goldman Sachs
Headquartered in New York City, Goldman Sachs is one of the largest financial institutions in the country, with $11.9 billion in net revenues at the end of the second quarter of 2022. Although net revenues fell 23% on a year-over-year basis, the numbers were still $1 billion above what analysts predicted, an article from CNBC revealed.
Despite increased volatility and uncertainty in the capital markets, the firm continued to make large deals happen across the U.S. In August, the firm closed $111.5 million in commercial real estate loans in New York City alone. In one of the largest deals closed, Goldman Sachs provided a $97.8 million hotel loan to Strategic Hotels & Resorts for a property at 160 Central Park S.
4. Santander Bank
In anticipation of the higher interest rate environment, Santander Bank decided to stop originating residential mortgages at the beginning of the year. However, the Spanish bank — primarily focused on northeastern markets — continued to originate commercial mortgages.
Over August, Santander closed a total of $134 million in large commercial real estate loans in New York City. The bank’s largest loan during the month was a $94.2 million note provided to Lonicera Partners to construct 15 Hanover Place, a mixed-income multifamily development in Brooklyn. Lonicera Partners also received roughly $40 million from City National Bank to finance the project.
3. Bank of America
As one of the largest U.S. banks and commercial real estate lenders, Bank of America originated a total of $64 billion in the second quarter of 2022, up 8% on a year-over-year basis, according to CoStar News.
In August, Bank of America originated a total of $170.7 million in financing across New York City. The bank provided a $61 million loan to an affiliate of CBRE to refinance two warehouses in Brooklyn. The loan is part of a $106 million financing package and replaces a $45 million loan held by JPMorgan Chase, The Real Deal reported.
2. Wells Fargo
Amid the challenging economic conditions, Wells Fargo, one of the largest mortgage lenders in the U.S., reported a decline in originations in the second quarter of 2022. The bank originated $34.1 billion in mortgages between April and June, representing a 10% decrease over the previous quarter and a 36% drop year-over-year, HousingWire reported.
Despite the overall drop in activity, Wells Fargo was one of the most active lenders in New York City in August, closing a total of $176.4 million in financing. The bank secured nearly $116 million for a 13-story mixed-use development at 312 Coney Island Ave., in Windsor Terrace, Brooklyn. The project will encompass rental apartments, retail space, and a church.
1. JPMorgan Chase
As the largest bank in the U.S., JPMorgan Chase provided a total of $106 billion in commercial real estate loans in the second quarter of 2022, up 6% compared to the same period last year. In August, the bank’s lending activity totaled $477.5 million in New York City.
JPMorgan supplied more than $222 million of the $435 million debt package Innovo Property Group received to refinance a multi-story industrial development at 23-30 Borden Ave. in Long Island City, Queens. Starwood Property provided the senior loan for the project. IPG purchased the site for $75 million in January 2019, in a joint venture with Atalaya Capital Management and Nan Fung Group, several sources reported.
Related Questions
What are the best commercial real estate lenders in New York City?
The top 5 commercial real estate lenders in New York City are JPMorgan Chase, Wells Fargo, Bank of America, Santander Bank, and Goldman Sachs. According to this article, JPMorgan Chase provided a total of $106 billion in commercial real estate loans in the second quarter of 2022, up 6% compared to the same period last year. In August, the bank’s lending activity totaled $477.5 million in New York City.
JPMorgan supplied more than $222 million of the $435 million debt package Innovo Property Group received to refinance a multi-story industrial development at 23-30 Borden Ave. in Long Island City, Queens. Starwood Property provided the senior loan for the project. IPG purchased the site for $75 million in January 2019, in a joint venture with Atalaya Capital Management and Nan Fung Group, several sources reported.
The table below shows the origination volume of each lender in August 2022 (in $MM):
Rank Lender Origination Volume(August 2022, $MM) 1 JPMorgan Chase $222.0 2 Wells Fargo $176.4 3 Bank of America $170.7 4 Santander Bank $134.0 5 Goldman Sachs $111.5 What are the most competitive rates for commercial real estate loans in New York City?
The most competitive rates for commercial real estate loans in New York City vary depending on the lender and the loan product. Generally, the most competitive rates are offered by banks and other financial institutions. According to the Mortgage Bankers Association, the average rate for a commercial real estate loan in New York City is 4.5%.
For example, JPMorgan Chase offers competitive rates for commercial real estate loans in New York City. The bank provided a total of $106 billion in commercial real estate loans in the second quarter of 2022, up 6% compared to the same period last year. In August, the bank’s lending activity totaled $477.5 million in New York City.
Other lenders in New York City may offer different rates and loan products. It is best to compare different lenders and loan products to find the most competitive rate for your needs.
What are the requirements for obtaining a commercial real estate loan in New York City?
In order to obtain a commercial real estate loan in New York City, you will need to provide a detailed business plan, plans for the property, 3-5 years of financial documents (business and personal), and your personal credit history. Additionally, Commercial Real Estate Loans has built one of the strongest networks of commercial real estate lenders and commercial mortgage brokers in the New York City and its surrounding areas. From bank loans starting at $1M to CMBS financing from $2M to upwards of $100M, they are committed to continue being one of the largest and most diverse lending networks in the state. Other popular lending options for the state include standard permanent financing, bridge loans, life company financing, and mezzanine financing.
What are the advantages of working with a commercial real estate lender in New York City?
The advantages of working with a commercial real estate lender in New York City are numerous. First, New York City is one of the largest and most active commercial real estate markets in the world, so lenders in the area have access to a wide variety of loan products and services. Additionally, lenders in New York City are often more experienced and knowledgeable about the local market, which can be beneficial when it comes to structuring a loan that meets the needs of the borrower. Finally, lenders in New York City often have access to more competitive loan terms, such as lower interest rates and longer repayment periods, which can help borrowers save money in the long run.
What are the most common types of commercial real estate loans available in New York City?
The most common types of commercial real estate loans available in New York City are bank loans, CMBS financing, permanent financing, bridge loans, life company financing, and mezzanine financing. Bank loans are the most common type of financing for commercial real estate properties and can be used for a variety of purposes, including the acquisition, development, or refinancing of an existing property. Loan terms usually vary from one lender to another, however, most banks offer competitive rates and don’t require the property to be owner-occupied. CMBS financing is also popular in New York City and is typically used for larger projects. Permanent financing, bridge loans, life company financing, and mezzanine financing are also available in New York City.
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