Developers report that although money is still tight for new commercial development, money is far more available that it was a year ago, especially for new multiunit development. “It’s a good time to be a multifamily developer,” says David Cardwell, vice president of Capital Markets for the National Multi-Housing Council. “I don’t know of any…
True, many banks are still working through their distressed property pipeline, but many have recently decided that it’s time to jump back into commercial lending, and yes, even for development and construction financing. It must be noted though that this is one area that brought down more banks during the downturn than any other. The…
Commercial real estate lenders are expecting to build on a very good 2011 with a stronger 2012. Barring international shocks such as a war with Iran or disruption in oil supplies, 2012 should see a loan volume in the range of $230 billion, up 17% from 2011, and continue to rise to $290 billion by…
For the first time in five years, a majority of banks are considering growing their loan portfolio due to improving conditions in just about all sectors of the economy. There’s neither an overwhelming consensus nor a large gain in activity, but most banks feel that they are through the worst of the write downs and…
I think 2012 will be a considerably better year for commercial real estate and an improved year for single family residential. I’m working with out of state retail buyers looking for out of state, single tenant, triple net leased or preferably absolute net leased with a long corporate lease, so in this manner, business is getting…
Retail closings fell 46% in the third quarter to $8.2 billion from the second quarter’s $15.2 billion. As bad as that was it was still an improvement over last year’s third quarter of $6.6 billion. True, second quarter might be distorted a bit by Blackstone’s $9.2 billion acquisition of Centro Property Group’s portfolio, but activity…
Good question Steve. Under IRS Section 1031, cash or other non-like kind property actually or constructively received by the taxpayer in a tax deferred exchange (commonly referred to as “boot”) causes the taxpayer to recognize gain to the extent of such boot. Loan proceeds received by the taxpayer generally aren’t considered boot unless its determined…
The CMBS recovery was coming along so strongly in the first two quarters of 2011 that conservative estimates were $35 – $40 billion and some predictions as high as $50 – 55 billion in originations for the year versus $10 billion for all of 2010. Then we had the stock market, job growth and debt…
Although, I’ve written about this in February, I thought it might be a good time for reminder, that as of April 6th the SBA Small Business Administration will open its 504 refinancing option to businesses with commercial real estate balloon payments due after that date. “With the collapse of the real estate bubble, many small business…
I didn’t see the below for my related post on February 8th and it is important. In a report released at this week’s Mortgage Bankers Association (MBA) real estate finance convention in San Diego, the MBA also found that loan maturities continue to roll at a manageable level, with just 11% of the $1.4 trillion…
There’s lots of mildly positive news here. It’s been about three years since I’ve been able to say that. In previous posts I think I’ve covered thoroughly the positive impact that the election will likely have on the commercial real estate market. If the 111th congress approves the bush tax cut extensions for a substantial…
It’s nice to read some good news for a change regarding the commercial real estate market in this country. It’s beginning to look like life as we knew it at one time (prior to 2008) isn’t going to end. Could it also be that the dire predictions of apocalypse for the banking system regarding outstanding…
I don’t know if this is good news or not. It’s believed by many that credit markets are softening and softening more quickly than prudent. I say great, we need a bit of this, however, we all know where this will lead again. We seem to do this bubble busting every ten years or so…
This is the 800 pound gorilla in the corner, and not only a big risk to CRE valuations for years to come, but to the economy in general. Let’s hope that this is not an aberration, but a trend toward working through this by working it out. However, even in the best of circumstances, it’s…
This is a huge topic right now and full of risk. Strategy of Last Resort: To Default or Not To Default? – CoStar Group I have an owner right now who is exploring those options. The negotiator recommended by his CPA made the recommendation that he stop paying on his loan for a few months…
http://www.realtor.org/RMODaily.nsf/pages/News2010052802?OpenDocument True, the above is discussing residential, but pretty much the same thing will apply to commercial. I listened to a panel discussion on this very same topic at ICSC with five lenders including JP MorganChase, US Bank, and they all said the same thing with regards to commercial lending. In that for the foreseeable future…
Five researchers from the Walton School of Business at the University of Arkansas conducted the first that I know of, in-depth study of the demographics behind the residential meltdown. They concluded that there was plenty of blame to go around, including consumers that brought much of this on themselves. And more specifically that households overall…
I just received this one and thought it significant enough to post it without me editorializing. I’ll get to it this afternoon. At first glance it appears to be a bit of good news though. We need some of that on the commercial side of this business. The article makes the point that the CRE mortgage…