Mixed News on Office Vacancy and Rents

February 18, 2011
posted by Travis

According to a new report by Colliers International, the U.S. office market entered the year on a relatively strong note after the fourth quarter, with a sharp drop in vacancy and a healthy increase in occupied space. But rents continue to languish, according to Ross Moore, chief economist at Colliers International and author of the report. The fourth [...]

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Providing Expert Advice on Capital Structure

February 3, 2011
posted by Travis

In most cases, if your client is looking for 80% LTV on senior debt, you’re going to have a hard time finding them the capital they need. Understanding the capital stack will allow you provide your client with some industry expertise and quite possibly a more feasible capital structure. Suppose your client has $2 million in [...]

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Senior Housing Insights

January 19, 2011
posted by Travis

According to recent polls conducted by NREI, investors in senior housing report that occupancy rates have declined as a result of the condition of the housing market, as well as the overall economy. There were mixed opinions on when occupancy rates would begin to recover, but most agreed it would be this year.

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Because the volume of commercial real estate sales nearly doubled in 2010 from $54.6 billion in 2009 to over $100 billion, financial institutions now have a basis for establishing pricing which will allow them to decide whether or not it is in their best interest to foreclose on commercial properties in default. Here is a [...]

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Commercial Real Estate Capital in 2010

January 1, 2011
posted by Travis

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 [...]

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Financing for Office Properties?

December 24, 2010
posted by Travis

Many experts in CRE will tell you that the office segment of the CRE market was one of the last to be impacted by the downturn and will be one of the last to recover. Does this mean that there is currently no financing available for office projects? Yes, financing is available for good projects. [...]

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Large retailers like Wal-Mart and Target have recently started to aggressively bid on vacant big box properties. In some cases retailers are outbidding investors by 20-30%. Since the properties are able to be acquired at massive discounts, the cost of occupancy for properties purchased by the retailers today will be much lower than if they [...]

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Joint Venture Financing

December 6, 2010
posted by Travis

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 [...]

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Does your client really need hard money?

November 24, 2010
posted by Travis

In many cases, when a borrower with bad credit seems to have a good deal in hand, their first thought is that they need hard money. This is not always true. Hard money deals are fast moving and are based on the value of the collateral. Typically, the LTV on a hard money deal is [...]

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Hotel Distress Helps Stoke Transaction Activity

November 16, 2010
posted by Travis

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 [...]

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