With traditional lenders retreating and developers confronting one of the most challenging financing environments in over a decade, private credit providers are emerging as essential capital partners in multifamily real estate. Joe Chickey, Managing Director and Head of Private Credit at Forum Investment Group, has a front-row view of how nonbank lenders are filling the void left by bank consolidation, regulatory pressure, and tighter underwriting standards.   

From surging demand for bridge loans to growing investor appetite for private-market income, Chickey’s insights highlight the forces reshaping the CRE debt market—and how rate-cut expectations for 2026 may soon unlock a new wave of multifamily development. 

CM: How would you characterize the current state of the multifamily financing market as banks continue to tighten and consolidate?  

JC: The market is tight and getting tighter. Banks are still retrenching, which is evident in the Fed’s latest Senior Loan Officer Survey showing continued tightening in multifamily-secured CRE loans. That’s limiting refinancing options just as many borrowers face softer rents and higher costs. At the same time, non-bank lenders are stepping in: debt-fund lending volumes have risen meaningfully this year, reflecting a broader shift toward private capital. 

CM: Where are you seeing the largest capital gaps in the real estate stack today, particularly for multifamily?  

JC: While financing new construction is challenging, the biggest gaps are at the refinancing point. Many owners who “bought occupancy” with concessions are now facing weaker NOI as loans mature-exactly where equity shortfalls show up first. This mirrors broader industry warnings that a wave of multifamily maturities will challenge sponsors with limited cash flow support or high leverage. At the same time, major private-credit platforms are raising large funds aimed squarely at these gaps. 

CM: Bridge lending has picked up significantly-what makes it such an attractive tool in the current rate environment?  

JC: The general perception is that today’s interest rates are high but are expected to come down in the near future as the Fed continues to cut rates. With that in mind, Sponsors are reluctant to lock in long term financing today. Instead, they want to access the “bridge financing” market, which in essence provides shorter term financing.  

This buys the sponsor time during which the expectation is that interest rates come down (along with cap rates) – and at the property level – any combination of favorable events will occur, including rental rates increasing, concessions burning off, occupancy improves, etc. That’s why industry reports show “a significant influx of capital into multifamily bridge lending,” even as other financing sources remain scarce. 

CM: For transitional or ground-up deals, what are the key risk considerations private lenders must manage when stepping in for banks?  

JC: We believe the biggest risks today are overestimating rent recovery, underestimating the capital needed to reach stabilization, and partnering with sponsors who lack staying power. With many markets still digesting 2024 and 2025 deliveries, lenders must be conservative about burn-off periods for concessions and avoid relying on rapid rate cuts or aggressive rent growth assumptions. Industry research echoes this-execution risk, cost overruns and capital markets risk remain among the top concerns for non-bank construction lenders. 

CM: Markets are pricing in rate cuts in early 2026-how is that shaping borrower behavior and your lending strategy at Forum?  

JC: Borrowers want time-not exits. Many are structuring around 2026-27 as the window where fundamentals normalize and financing improves. From our perspective, we aren’t underwriting to rate-cut optimism. We’ve built our lending strategy around realistic market fundamentals, property level cash flows, and financial metrics with a focus on our last-dollar basis. If rates decline in 2026, that’s upside, not the foundation of the deal-and that aligns with industry forecasts that expect gradual improvement, not a rapid reset. 

CM: How should advisors think about incorporating private real estate credit into diversified client portfolios?  

JC: Private real estate credit offers what many investors want today: income, subordination behind a sound equity cushion, and reduced volatility relative to equity. It can serve as a complement to traditional fixed income, particularly when spreads remain wide and banks are less active. Private real estate credit has shown consistent resilience across market cycles and is increasingly recognized as a reliable, stable income component within diversified portfolios. 

CM: What do you see as the biggest opportunities for private credit lenders in multifamily over the next 12-24 months?  

JC: We believe we’re entering one of the most compelling lending environments in decades. Debt maturities, limited equity availability, and bank pullback are converging just as new construction starts fall sharply. That creates opportunities to lend on high-quality assets at today’s values-often at discounts of 25% or more from peak pricing. Multifamily fundamentals remain resilient, and supply is moderating, but capital needs are rising. 

CM: Looking ahead, do you expect private credit to remain a permanent fixture in multifamily financing, or will banks eventually reclaim lost ground?  

JC: We believe private credit is now a permanent part of the capital stack. Banks will regain some activity over time, but structural constraints-regulation, consolidation, and balance-sheet pressure-aren’t going away. We’re already seeing evidence: banks are selling multifamily portfolios or exiting certain lending verticals entirely, while private credit platforms continue to scale. That’s a secular shift, not a temporary one.