Commercial Mortgage Lending - Liberty Realty Capital Group

Construction Lenders All-In for Apartments

August 19, 2015October 6, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

Banks are eager to lend money to apartment developers to build new apartments. “We still get a number of bids for every deal—four to six or more,” says Michael Riccio, co-head of national production for CBRE Capital Markets.

Construction lenders seemed on the brink of tightening their lending standards earlier this year. Experts worried too many apartments were already under construction and vacancy rates were about to rise. But this spring, demand for apartment properties continued to grow, powering yet another strong season of rising rents—and construction lenders are eagerly making loans to new development projects.

Read entire article here in National Real Estate Investor.

Surge in Commercial Real-Estate Prices Stirs Bubble Worries

August 13, 2015October 6, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

Investors are pushing commercial real-estate prices to record levels in cities around the world, fueling concerns that the global property market is overheating.

The valuations of office buildings sold in London, Hong Kong, Osaka and Chicago hit record highs in the second quarter of this year, on a price per square foot basis, and reached post-2009 highs in New York, Los Angeles, Berlin and Sydney, according to industry tracker Real Capital Analytics.

Read entire article in Wall Street Journal here.

High Leverage for Apartment Loans Troubles Moody’s

August 12, 2015October 6, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

With prices so high for apartment properties, any loan based on today’s appraised values is going to look very large compared to historic prices. But multifamily CMBS loans are especially troublesome, according to Moody’s Investors Service.

“The credit quality of U.S. conduit/fusion commercial mortgage-backed securities (CMBS) continues to deteriorate, with conduit loan leverage in the second quarter pushing past its 2007 peak,” reads a July report from Moody’s.

Read entire article in National Real Estate Investor here.

Billions of dollars in new headaches ahead for old real estate deals

August 11, 2015October 6, 2015 by Randybaconin Commercial Mortgage LendingLeave a Comment

A signature financial instrument of the pre-financial crisis real estate boom is about to come due. And for some large real estate owners – particularly in the Midwest and Southeast – that could mean trouble.

More than $53 billion out of $156 billion worth of securitized commercial mortgages that are set to mature in the next two years may find difficulty refinancing or require more investor capital, according to data compiled by Real Capital Analytics.

Read entire story on Yahoo Finance here.

Borrowers Enjoy “Perfect Storm” for Refinancing Opportunities

August 5, 2015October 6, 2015 by Randybaconin Commercial Mortgage LendingLeave a Comment

Borrowers continue to take care of upcoming loan maturities early by refinancing today—even if it means paying penalties in order to do so.

Low interest rates, rising property values and incomes, and a competitive lending environment are creating a perfect storm for borrowers looking to refinance maturing loans.

“All of those things are making it a great time to refinance,” says Jamie Woodwell, vice president of commercial real estate research with the Mortgage Bankers Association (MBA), a trade group. “We have seen borrowers working as much as they can to draw forward upcoming maturities and getting them refinanced today.”

Read entire article in National Real Estate Investor here.

Shadow lenders push deeper into risky commercial real estate

July 31, 2015October 6, 2015 by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment

Seven years after the financial crisis, private funds in the U.S. are extending their push into traditional banking.

So-called shadow lenders — asset managers that operate outside the banking industry’s regulatory oversight — have been making an increasing number of leveraged loans to midsize businesses.