- What VA Capital brokered over $2.25bn of commercial loans in 2024
- Why More than two-thirds were CMHC-insured multifamily loans
- What next The company’s president, Jeffrey Soliman, is preparing for a trend reversal in 2025
VA Capital originated over $2.25bn of commercial real estate loans last year, with the majority being for CMHC-insured multifamily assets, Green Street News can reveal.
Last year’s figure represented a record for the Montréal-based commercial mortgage company focused on Québec. Over the past six years, VA Capital has brokered more than $6bn of loans.
In 2024, CMHC-insured multifamily loans were a major driver for the firm, accounting for nearly 67% of its activity. Conventional loans made up the balance at about $750m.
However, president Jeffrey Soliman is preparing for a trend reversal.
“I predict CMHC will pull back in 2025 and commercial loans will shift more towards conventional financing,” he said.
“I expect bridge and construction loan volumes to increase in 2025 as variable interest rates hover between 5% and 6.5%. Meaning you can get a CMHC construction loan today at 5% – which is very cheap,” he continued.
“Prime rate and Bank of Canada overnight rate are back at mid-2022 levels and expected to gradually decrease before leveling off.”
By asset class, multifamily rentals accounted for just over $1.4bn of loans brokered by VA Capital. The remainder were: industrial ($314.9m), retail ($226.3m), other, including condo, office and student housing ($172.5m), and land ($48.5m).
Soliman said there’s a great sense of confidence in Québec. “Municipalities are more than ever encouraging developers to build and create communities,” he said.
With the population growth and shortage of multifamily supply, Soliman expects multifamily construction loan volumes to increase this year.
“I also expect condo development to pick up significantly as variable interest rates for single family dwellings have dropped close to 2% in the past couple years,” he said.
VA Capital says it is committed to community involvement.
The firm donated over $100,000 to various organizations, supported Concordia University with $5,000 in scholarships for women studying in real estate, and sent a dozen children to their first Montréal Canadiens hockey game.
