Big firms proof that deals still getting done.

Lenders and borrowers clearly have lots on their minds. Some are losing sleep over the market gyrations while others forge ahead on deals. An important point that often gets missed in the headlines these days is that a wide variety of commercial real estate deals are being executed in this market. Through the first seven months of 2008, for example, Meridian Capital Group has closed $7.2 billion in deals. By generating that volume of deals, Meridian stands as proof that lenders and borrowers are still getting deals done.

Financing isn't nearly as easy to come by today as it was last year. But quality borrowers seeking to finance quality assets are still finding tremendous opportunities in this market. This is especially true in the multifamily forum where we closed nearly $5 billion in deals through the first half of 2008. To be sure, much has changed over the past year. Lenders are no longer giving away money to any and all borrowers. Borrowers, for their part, must battle the perception that a weakening real estate market has made even safe deals toxic.

Even so, a host of lenders are still competing to provide financing for all types of deals: capital is still available for the right deals. While the sources of that capital are no longer conduits or Wall Street investment banks, Fannie Mac and Freddie Mac are still providing ample liquidity to the multifamily finance market. Case in point, Meridian managed to close more than 500 transactions and $2.1 billion in agency multifamily loans through the end of July this year.

Commercial real estate investors are full of questions these days: How are values holding up? Where are energy prices going? And how will the upcoming presidential election affect the real estate market? I believe that the only certainty is that the next 18 to 24 months will be very interesting to track. Meridian offers the following three pieces of advice to multifamily borrowers looking to secure much-needed financing today:

Recognize that lenders made many mistakes during the last boom. One thing they've learned from these mistakes is that sponsorship matters--so all borrowers should be prepared to highlight their track record on previous deals. A borrower's past performance matters more than ever.

Brace yourself for more tough times ahead. But the stabilized multifamily market, which continues to generate strong rental income, should hold up better than other market segments. Borrowers with existing assets should therefore keep their eye on the operational side of this business since that's what lenders care about.

Conduit lenders have already started to "come back". But "coming back" does not entail going back to 90% financing with 10-year interest only terms. Conduit lenders should be back in the market, but with more prudent underwriting and lending behaviors.

BY AVI WEINSTOCK, EXECUTIVE VICE PRESIDENT, MERIDIAN CAPITAL GROUP