The CBRE Lending Momentum Index declined by 15% in Q4-22 from Q3 and 27% year-over-year. CBRE cited heightened market volatility amid higher interest rates.
“The Federal Reserve’s commitment to reduce inflation with aggressive rate hikes continues to heighten market uncertainty, as borrowing costs increase and a lack of price discovery persists,” said. Rachel Vinson, CBRE President of Debt & Structured Finance, U.S. for Capital Markets. “While there is plenty of debt capital available waiting to deploy, fewer borrowers are willing to transact unless they have to.” (Bold by Counsel Mortgage.)
She added, “We are seeing increased activity from private capital, as well as regional and local banks. We expect demand for shorter-term, fixed-rate debt with shortened call protection to endure well into the second half of 2023.”
There you have it! There’s plenty of debt capital (mortgage loans) available for commercial real estate (CRE), and it looks to be available from private money lenders and (select) regional and local (community) banks.
As current explorers of needles in haystacks, we acknowledge the difficulty in finding the suitable fit of lender-for-property, and type of loan. As a potential guide for your next loan in this challenging environment, we offer our current loans working:
1. An SBA 504 loan for hotel development & construction – this requires both an SBA loan and a participating conventional loan. ($12,400,000),
2. An SBA 7 (a) loan for a gas station acquisition ($1,050,000),
3. A conventional loan for a retail development & construction project. ($3,600,000)
We enjoy historically-based working relationships with the lenders of these 3 projects, making the processes both efficient and effective, leaving us the luxury of time to consider additional loans – perhaps yours!
If you would like to take advantage of the volatile and chaotic CRE market, but are hesitant about securing financing, give us a call. We may be able to provide you with the missing piece for your transaction. We work for you, not the lender.
Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.
Counsel Mortgage Group®, LLC
Licensed in Arizona, California, Hawaii and Illinois
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480-502-1000
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