According to the July edition of Real Estate Forum, the balance sheet problems of commercial banks and the collapse of the CMBS markets are resulting in market terms for debt financing for single tenant, net leased properties reverting to conditions last seen before the in the 1999-2001 era.Here's what that means according to the article by Michelle Napoli.
- local and regional banks are now the "go-to" source of mortgage financing
- full or partial recourse is back on the table
- leverage is lower and interest rates are higher
- loan term durations don't exceed the length of the lease
One bridge lender interviewed in the article claims to be seeing a lot more deal flow as borrowers "cannot get financing through avenues they typically use".
A private money, bridge lender that I show deals to has experienced the same increase in deal activity. This lender's rates currently range from 8.5% to 10.0% (before points) for bridge loans secured by commercial real estate in California of all property types. The lender is willing to consider properties in other western states.
Need help with an introduction to a bridge lender for commercial real estate properties? Read "Matchmaking for Business Loans" and give me a call!
Tags : commercial real estate , private money loans , bridge loans , hard money loans , Real Estate Forum , credit tenant leases
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