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…
I attended a seminar last week sponsored by the Columbus Board of Realtors with one of our largest regional banks, and I want to disseminate some of what I heard. Banks once again have production goals, so that could benefit you , the investor or owner user, IF you fit their profile. Huntington Bank as…
It’s a mix of both moderately good news and some bad news. Starting with the bad news is that we had a major drop off in construction and development funding from $321 billion last to $240 billion this year. I was pretty optimistic back during the second and third week of January when I was…
I’ve written several times in the past year about the September 2010 newly launched SBA 514 program, and like so many government programs as of late, has been a failure. How could this happen so quickly? It has gone in one year’s time from considerable fanfare in September 2010 to dormant today. Only about $50,000,000…
A reported $35.48 billion was raised in the second quarter for acquisitions and refinancings. The total for the first half was $66.43 billion. It took nine months last year to raise the same. Of what was raised, $5.42 was to be used to repay debt, while $30.5 billion was targeted for acquisitions and investments. $5.49…
The CRE burden eases to the nation’s 7584 insured banks and thrifts. The total of distressed commercial real estate assets are $171 billion and that’s only 1.3% of all bank assets. As distress eases, banks set aside fewer dollars to deal with losses, and funds available for lending will increase. This is the sixth consecutive quarter…
CMBS activity is way up with $6.5 billion in new securitization coming to market in the last few weeks. The activity to date in February is 2/3rds of the total CMBS deals offered for all of 2010. Additionally, Freddie Mac brought two multifamily offerings totaling $1.86 billion to market. This is reminiscent of 2006 and…
The United States SBA for the first time is allowing for the temporary extension of the 504 loan program to allow refinancing of existing commercial real estate debt. The SBA will start accepting loan applications Feb. 28. The program will end Sept. 27, 2012. Much more detail at the link. SBA 504 Loans Approved for…
Dropped to 8.22 at end of 2010 and that’s a decrease of 10% since 3rd quarter 2010. However, the MBA’s report doesn’t include loans already in foreclosure. According to MBA’s latest report, the percentage of loans in the foreclosure process at the end of the fourth quarter was 4.63 percent, up 24 basis points from the…
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…
Mortgage Banker Association announced yesterday that 2010 totaled $110 billion of commercial loan originations, up 36% from 2009. The bulk of that in 4th quarter 2010 with life companies up 155%. CMBS increased tenfold. Of course give the volume of conduits in 2009, that’s not saying much. However, the CMBS market is expected to be…
According to CoStar COMPs, sales volume for commercial property rose by nearly 70% from about $22 billion of deals in the first quarter of 2010 to almost $36 billion in the fourth quarter. And the $36 billion will like increase as CoStar finalizes its fourth quarter totals and confirms the flurry of year end deals…
Data from federal regulators show that the nations’ largest lenders repossessed nearly 187,000 homes during 3rd quarter 2010. Foreclosure completed were up 57 ½ % from same quarter 2009 and almost 15% from 2nd quarter 2010. The lenders reporting include: Bank of America, JPMorgan Chase, Citibank, HSBC, MetLife, PNC, U.S. Bank, Wells Fargo, and OneWest…
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…
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…
Commercial real estate troubles appear to be subsiding as American Banks report best quarterly earnings in three years. Profits are up to over $21 billion for the quarter as compared to the loss of $4.4 billion last year. Delinquencies of ninety days and over decreased by $19.6 billion (4.8%) during the second quarter. This is…
Most of you probably know that my specialty is out of state investment properties for primarily California buyers. I’m pretty well wired for this with mortgage brokers and regional lenders that are OK with financing out of state borrowers. True, this is way more difficult than it was three years ago, but we can still…
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…
Turmoil is the name of the game for the foreseeable future. That being said, there are some good buys out there, but the competition is intense. I have a new listing that I’m taking to market in the next days and after reading this its real tempting to label it as distress even though it’s…