Archive for October, 2006

The Real Estate Capital Institute Announces Editorial Advisory Group Nominations

Yazan: realtycapital | 27 October 2006 | No Comments
Categories: Education, People

Realty Finance Professionals and Scholars Provide Insight into Funding Trends.

Chicago – A Successful Urban Redevelopment Story

Yazan: realtycapital | 24 October 2006 | No Comments
Categories: The Institute

The Real Estate Capital Institute is an example of an organization seeking the urban dynamics offered by Chicago.

Three Underwriting Tweaks Maximize Income-Property Loans

Yazan: realtycapital | 15 October 2006 | No Comments
Categories: Education, News|Views

Fine-tuning Yields Better Pricing and Leverage

Hospitality Lending In Full Swing

Yazan: realtycapital | 08 October 2006 | No Comments
Categories: News|Views

Capital Markets rest comfortably with lodging properties.

The Real Estate Capital Scoreboard® – October 2006

Yazan: realtycapital | 01 October 2006 | No Comments
Categories: Scoreboard

Fine-tuning Yields Better Pricing.

MORTGAGE RATES

« "Current permanent loan rates for income-properties start at 5.5%. Dial 773-CAPITAL (227-4825) for the Real Estate Capital Rateline for daily update." »

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Las Vegas, NV - February 6, 2010 - According to industry leaders gathering in Las Vegas this week, debt capital is readily available for 2010.  Optimism is in the air and the mortgage lenders are starting to offer more generous terms and conditions.  In summary, timing is excellent for select borrowers in securing debt based on the following conditions:  (1) Recovering economy, (2) Ample supply of capital and (3) Limited supply of financeable real estate assets.  The following highlights summarize the 2010 state of the realty capital markets including an overall outlook and overall funding program offerings:  Back to Basics:  As lenders workout of their legacy problems, new funding goals surface which are clearly more ambitious than 2009. Still underwriting of actual numbers w/o projections, yet inflation fears exist. Most lenders are Indifferent to spreads, but not competition. Valuing real estate properties in a declining market still a challenge. More allocation of funds available above target amounts if deal flow is of sufficient quality Underwriting Dynamics:  As has been the case last year, high-quality projects in major markets backed by excellent sponsorship and cash flow characteristics are most desired—especially based on low leverage of 65% of value.  Location/Property Types: Major MSAs strongly preferred for optional pricing and leverage.  Otherwise a substantially most costly financing with lower leverage. Preferred property types ranked in order:  (1) Multifamily, (2) Credit-Tenant lease of all property types, (3) Industrial, (4) Retail, (5) Office - however medical office ranks equal to Industrial and (5) Lodging. Pricing (Permanent Fixed-Rate Loan): Agency pricing for apartments starts in the low to mid-5% range for 5 year or greater term. Life company pricing starts mid-5% to 6% for 5 years or more term mostly targeted for commercial property pricing (agencies are more competitively priced) More entrepreneurial funds start at 7% or more targeting secondary markets, smaller fundings, older properties and lodging assets. Add a pricing premium of 25 to 50 basis points for loans below $5 million. Yield differential disappearing - typical ($5 to $50 million) vs. larger loans. Forward funds available up to a year based on 6 o 8 basis points premium per month.  Leverage: Above 65% LTV on a select basis combined with lower spreads. Values based on the lower of: (a) purchase price, (b) appraised value or (c) lender imposed capitalization rate.