Remington Capital » access to commercial capital

Commercial Real Estate Capital in 2010

Travis — Sun, 02 Jan 2011 04:32:12 +0000

REITs are one of the largest sources of private capital for real estate investments. REITs that invested in debt secured by commercial and residential real estate seemed especially successful, in some cases posting total returns over 200% for the year. Is there capital available for commercial projects in today’s market? The answer is yes; private sources of capital have been very busy in 2010 and will continue to provide capital for commercial projects through 2011.

Joint Venture Financing

Travis — Mon, 06 Dec 2010 09:46:10 +0000

Since I brought it up last week, I figured I’d better talk a little bit about Joint Venture financing. This is the financing option that many borrowers will really need when they contact you looking for hard money. Since hard money lenders will only go up to 60% LTV at best, clients looking for higher LTVs will have to look at engaging a joint venture partner. With a Joint Venture, the investor generally contributes 80-90 percent of the required equity (though we have arranged deals that were 100%) and in exchange the investor shares in the profits and loss of the business. Most joint ventures usually include a buy/sell agreement that allows your client to buy out the investor within a specified period of time. One important thing for clients to consider when seeking a joint venture is this: What value they are bringing to the deal that would attract an investor to provide 90% of the necessary capital?

Hotel Distress Helps Stoke Transaction Activity

Travis — Tue, 16 Nov 2010 19:19:39 +0000

The return of the hotel transaction market has taken longer than expected, but a splash of high-profile acquisitions and a potential wave of distressed assets coming to market have many believing the dam is about to burst.

Jones Lang LaSalle Hotels, which tracks asset sales $10 million and higher, reports more than $1.1 billion of hotel sales in the United States in September alone. To put that figure in perspective, consider there was only $2.2 billion transacted in all of 2009. Given that the velocity of transactions is accelerating, Jones Lang LaSalle Hotels has boosted its 2010 forecast from the just surpassed $4.5 billion to $6.5 billion.

The buying opportunity of a lifetime many expected has not arrived, but several recent trophy assets acquired in major markets for top dollar indicate the paralysis of the past 18 months is over. A schizophrenic climate has developed, though, as many distressed assets haven’t come to market and some stabilized properties in secondary locations have drawn little interest from buyers.

Investor Hunger for Apartment Properties

Travis — Wed, 13 Oct 2010 02:01:31 +0000

Multifamily properties in major metro markets remains the asset of choice for many commercial real estate investors, with momentum fueled by a number of large late-summer sales transactions following a solid first half of 2010.

Public and private REITs have landed the largest deals of late, but private equity, pension funds, insurance companies, owner-developers and even private individuals are all getting into the action for both core and distressed multifamily projects in large metros around the country, according to CoStar Group sales data.

Prices Dip Nationally

Travis — Sun, 03 Oct 2010 21:13:13 +0000

Continuing along a track of bouncing along the bottom that has prevailed thus far in 2010, US commercial real estate prices took their second consecutive monthly decline in July. The index is now only 0.9% above the recession low recorded in October 2009, and 43.2% below its October 2007 peak.

In response, many economists lowered their growth expectations for the domestic economy. Commercial real estate markets were therefore caught in a “downdraft” that is reflected in the “relatively large” declines in the index over the past two months.

CRE investors keep investments in quality assets

Travis — Mon, 20 Sep 2010 20:28:55 +0000

Commercial real estate investors who have not seen enough distressed properties come available in the third quarter are keeping the pent-up capital in quality assets, according to PricewaterhouseCoopers’ Korpacz Real Estate Investors survey.

Investors expect cap rates for the core assets they’re invested in to either hold steady or decline through the rest of the year as interest rates remain low and debt markets continue to facilitate property trades.

Addition To Our Team

Travis — Thu, 03 Jun 2010 09:00:13 +0000

We are pleased to announce that Aaron Bogdanoff has been appointed to head up our Affiliate Broker Program. Aaron will be recruiting highly qualified affiliates who will then be permitted to market Remington’s services worldwide.

Trend: Construction And Development Lending On Hold

Travis — Fri, 28 May 2010 10:33:20 +0000

The United States has seen a recent trend of slowing construction loans. Lenders are cautious about lending money for construction projects, due to the flooded construction market.

Read The Full Story Here.

Healthcare Reform Increases Demand For Medical Facilities

Travis — Sun, 09 May 2010 02:20:51 +0000

Health Care reform is gaining ground. It will extend coverage to over 30 million people who weren’t covered before. Experts predict that in the coming months demand for Primary care will skyrocket as will demand for Healthcare facility capital. Remington offers specialized financing for Medical and Healthcare offices and facilities. Remington has the necessary resources and expertise to secure Healthcare financing in a trivial market.

Increased delinquency rates prevent banks from issuing credit

Travis — Thu, 29 Apr 2010 08:16:11 +0000

Early estimates show that in the first quarter of 2010, commercial delinquency rates rose from 5.1% to 5.5%. Although 5.5% is well below the 8% delinquency in Q3 of 1991, this is still worrisome due to scarce credit and the overwhelming amount of maturing commercial loans. Current data shows that delinquency rates are only going to continue to rise into 2011. Remington offers distressed owner recapitalization programs, and has the experience and resources neccessary to secure financing when banks are not giving out funds.

To learn more about Remington’s Recapitalization options, please click here.