Marc Suarez, Managing Director, Lument

In an interview with Invest:, Marc Suarez, managing director at Lument, discussed the company’s priorities in the evolving market, the challenges in affordable housing, and how South Florida’s resilience sets it apart. He also shared insights on the multifamily sector, capitalizing on projects, and navigating economic uncertainties.

What milestones at Lument have made you most excited this past year?

What’s kept me most excited this year is the opportunity I’ve seized while navigating a quieter market. While activity levels have been lower than usual, this has created space to prepare for what I believe will be another strong run. Over the past 24 months, the subdued environment has been unusual for us, and I’m optimistic that things will continue to stabilize, leading to a more consistent pace of activity.

In the meantime, I’ve been focused on adding value for clients and colleagues. One key area has been the insurance market, which is now more complex due to skyrocketing costs. Whereas insurance was once just a check-the-box item, it’s now critical to understand policies in detail, evaluate risks, and manage them effectively.

We’re also grappling with other uncontrollable factors — treasury markets and construction costs — both of which have risen significantly. While I don’t expect costs to drop drastically, I believe stabilization could restore confidence and encourage activity. For now, many are waiting for that turning point.

Considering the trends you’re seeing, how is the situation in South Florida different from other markets where you operate?

Miami and South Florida are unique. During strong periods, we group Miami, Fort Lauderdale, and Palm Beach as South Florida. But in choppier times, they’re seen as separate, with Miami consistently standing out as the leader.

This cycle has shown South Florida’s resilience, with Miami performing as an outilier. Rent growth here has been far stronger than in most markets, allowing us to better absorb rising expenses like insurance. For example, when financing apartment buildings, the insurance cost per unit is the same across these markets. However, in areas without comparable rent growth, these rising expenses can strain balance sheets and net operating income.

While rents have grown nationwide, they haven’t kept pace with expenses in many regions. Miami is one of the few markets where rent growth has been sufficient to offset higher costs, making it a standout for investment and attention.

What trends are you observing in the multifamily sector, and how are they influencing your lending strategies?

In today’s challenging market, if you can capitalize on a project, whether by bringing in more equity or getting creative with your capital stack, you should move forward. For new construction, securing funding now positions you for success down the line.

A typical development cycle — construction, lease-up, and stabilization —takes between two and a half and three and a half years. Starting a project today means delivering in a year or two, with stabilization occurring in a potentially stronger future market.

We’re seeing developers take this leap by contributing more equity. While banks and lenders have pulled back on leverage, those who can capitalize on deals now are setting themselves up to be ahead of the curve. These developers are making smart moves, underwriting deals that work in today’s tough environment, and positioning themselves to benefit when the market recovers. Though not everyone is doing this, those who are will likely reap the rewards of being proactive.

How is Lument supporting affordability, and what challenges are you encountering in this space?

As a national Freddie Mac and Fannie Mae lender, much of Lument’s work focuses on mission-driven business — affordable and workforce housing. This represents a significant portion of what we do, with numerous programs and initiatives aimed at prioritizing and encouraging affordable housing development and investment.

In Florida, new laws like tax abatements and other incentives support these efforts. However, implementation has been challenging, often due to a disconnect between how these laws are written and lenders’ requirements. This misalignment frequently necessitates revisiting and refining the frameworks to ensure they work for all stakeholders.

For example, the Live Local Act is a great concept, but its success has been hindered by implementation complexities. The process requires collaboration between lenders, municipalities, and developers to address everyone’s needs. Since lenders typically provide 50% to 75% of the capital stack and take on the first-loss position, it’s essential these programs are structured for effective underwriting. Progress is being made to refine these frameworks, balancing the needs of states, developers, municipalities, and lenders.

How does Lument’s expertise at the intersection of multifamily and senior housing & healthcare properties benefit your clients?

Lument is one of the largest senior housing and healthcare lenders, covering everything from assisted living facilities to skilled nursing. We also serve the full multifamily spectrum, including senior housing, affordable housing, market-rate housing, and manufactured housing properties. By leveraging a collaborative team approach, we deliver tailored solutions across all demographics.

Our strength lies in tapping in-house experts for each property specialty. For example, a senior housing deal might not fit neatly into a specific agency product. Instead, aspects of the deal may work better under another product. By combining insights from our senior housing, affordable housing, and multifamily teams, we ensure every deal is structured to maximize success.

I often work closely with clients during the early planning stages. For instance, if a developer wants to combine affordable and senior housing, we might advise them to split the components into separate phases or parcels. This approach provides flexibility in financing and improves marketability at exit. It’s about finding structures that work not only today but throughout the project’s lifecycle.

How does Lument support clients navigating the challenges of financing for affordable housing?

Affordable housing, particularly projects defined by AMI regulatory agreements and rent restrictions, faces unique challenges. Rising expenses and limited rent increases create a tough underwriting and financing environment.

To address this, we work closely with clients, including nonprofits, to tailor financing solutions that support their success. While we don’t form formal partnerships, our collaborative approach makes us deeply invested in these projects.

For example, we guide clients on structuring deals to meet regulatory restrictions while navigating rising costs. Whether it’s layering financing creatively or identifying the right program, our expertise helps clients overcome challenges and drive progress in affordable housing.

What are your top priorities and goals for Lument over the next two to three years?

The agency lending space has often followed a broker-based model. However, when we opened our South Florida office, we aimed to bring a personal touch to Fannie Mae, Freddie Mac, and HUD/FHA lending by having someone local who could be a visible and accessible presence for clients when issues arise, whether insurance-related or property-specific.

I’ve often heard people say they’ve done business in Miami but not with people from Miami. My goal is to continue building relationships and serving both local and out-of-town clients who want to do business here. We’re also committed to supporting community banks by offering differentiated products. As a non-bank lender, we don’t compete for deposits but collaborate to provide creative, collateral-based lending solutions.

Over the next few years, I want to expand our presence, strengthen relationships, and ensure Lument is recognized as a reliable, approachable partner in South Florida.

What are your thoughts on the current economic cycle and its impact on the market?

The past two years have been a rollercoaster, largely due to interest rate uncertainty. Rates have risen more than expected, with occasional dips followed by increases, leaving the market in constant flux.

What we need, and what I hope for, is stabilization. Historically, today’s rates aren’t extreme, but the unpredictability is creating hesitation. Stabilizing rates, even at current levels, would help restore confidence. Right now, people are unsure if rates or expenses will drop, hold steady, or continue rising.

The key to recovery lies in balancing rates and expenses. If either drops, or ideally both, capital could re-enter the market. The bigger challenge arises when one improves but the other doesn’t, such as rates dropping while expenses remain high.

I believe it will take time for the market to regain its footing. For now, the focus should be on understanding where we stand within the broader picture and navigating long-term trends. Eventually, capital will return; it’s just a matter of when.