Tag Archive: lender

Pricing Bubble Returns Again to Commercial Real Estate

In DLA Piper’s annual survey of the commercial real estate industry, 85 percent of senior executives at commercial real estate brokerages, REITs, etc., hold a bullish outlook for the remainder of 2013.  56 percent see a combination of low interest rates and a abundant debt and equity capital as a primary reason for their optimism. …

More Lenders and More Money for Construction

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…

Commercial Real Estate Capital Markets From a Regional Bank’s Perspective

Commercial Lender Regional Bank

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…

Commercial Real Estate Lending Update

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…

SBA 504 Refinance Program a Failure

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…

Real Estate Capital Surges in the Second Quarter

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…

Commercial Real Estate – The Burden Eases

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 Market Back in 2011

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…

SBA – 504 Loans for Refinancing Commercial Real Estate Approved

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…

57% Increase in Completed Foreclosures

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…

CMBS Market Coming Back

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…

Debt Restructure for Commercial Real Estate

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…

Strategic Defaults

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…

Commercial and Investment Real Estate News

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