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Back to Basics 

How can commercial real estate borrowers obtain financing and survive the capital markets mess? Is there a secret handshake to get a loan application or a password for a term sheet? In reality, the answer is far simpler Bring in

Agency Programs Provide Financing for Seniors Housing 

Less available capital is the result of overbuilding and profitability woes in today's seniors housing market. However, several viable options remain, including government backed financing. Lenders Change As recently as two years ago, seniors housing developers, owners, and potential buyers

Sale-Leasebacks Provide Capital for Core Business Investment 

The market for sale leasebacks — transactions in which companies sell and then lease back real estate assets — is growing at an estimated $10 billion to $15 billion annually. Continued increases are expected due to today's difficult real estate

Struggling Properties Can Exercise Workout Options to Improve Financial Health 

This year is shaping up to be the most active period for real estate workouts since the early 1990s, primarily due to the declining value and performance of commercial properties during the economic slowdown. Tightening capital markets have compounded the

Separation Anxiety 

In February the White House published a report to Congress mandated by the Dodd Frank Financial Reform Bill. The white paper indicated a significantly reduced role for the government sponsored entities Fannie Mae and Freddie Mac, winding down their conventional

A Taxing Situation 

As markets conditions continue to squeeze both landlords and their tenants, renegotiating loan terms can be an effective strategy for property owners to reduce overhead. But beware — the financial implications aren’t as simple as they sound. Many property owners

Federal Historic Tax Credit Aids Adaptive Reuse Developers 

For adaptive reuse projects involving historic buildings, developers often tap into a federal tax incentive program known as the historic rehabilitation tax credit. This program generates a credit that directly reduces taxes rather than offering a tax deduction such as

Exporting Capital 

As economies throughout the world continue to expand, the flood of real estate investment capital headed overseas has swelled to record levels. This unprecedented growth is expected to continue throughout the year and well into 2006. Despite a weak dollar,

Entrepreneurial Mezzanine Financing Sources Offer Flexible Equity 

In recent years, mezzanine debt and equity financing has been growing steadily into a major source of funding for all types of commercial real estate projects. On a marketwide basis, the real estate mezzanine financing sector represents 10 percent of

Financing Still Available for Well- Structured Technology Ventures 

Less than a year ago, landlords and lenders were trading warrants for security deposits and leasing space at exorbitant rents to technology tenants. Currently, with the Nasdaq below 2000 and capital spending for technology at a halt, corporate credit has

Redefining Debt 

Downsized operations and scarcity of tenants have temporarily left many business owners and developers with too much real estate and too much debt. Refinancing often is the solution of choice, but doing so isn&rsquo t always viable. Owners or developers

Private Mortgage Loans Provide a Short-Term Financing Alternative 

Private mortgage loans are made by private lenders instead of traditional financing sources such as banks, lending institutions, or government agencies. They usually are short term (6 months to 3 years) hard money or asset based loans, and the decision

Mind the GAAP 

GAAP is widely used. It is required for public companies such as publicly traded real estate investment trusts, and often it is demanded of private real estate companies by institutional investor partners. But GAAP is not the only choice for

Rising Rates 

Recent commercial real estate capital market demand has caused capitalization rates to decline significantly, which has inflated real estate values despite poor fundamentals. Yet most experts believe that cap rates soon will climb. Investors should assess their properties to ensure

Repayment Options 

When defeasance became standard call protection for average commercial mortgage backed securities loans in 1998, the timing could not have been worse for borrowers. Yields on government securities declined steadily in 2001 and 2002 making defeasance increasingly more expensive as

Wait and See 

Last year, the commercial real estate debt market again decreased considerably from the last decade's double digit growth rates. This slower growth indicates a lower level of transactional activity —buying, selling, and refinancing — taking place as the industry awaits

What's Your Exit Strategy? 

There are many factors to consider when entering into a fixed rate commercial real estate loan what’s often forgotten is how to get out. Negotiating a solid exit strategy should be a critical aspect of all fixed rate loan originations.

Understand Lender Criteria to Finance Manufactured-Housing Communities 

Manufactured housing is a niche that offers potentially strong returns for some investors. Once thought of as simply mobile home parks, today's manufactured home communities are split into two primary categories landlease communities where residents own their homes and lease

Affordable Money 

With the ever increasing need for more affordable housing, both nonprofit and for profit developers must consider every available below market rate financing program to make such projects economically feasible. Viable sources may be 501(c)(3) bonds for nonprofit developers

Consider the Options 

When fully understood, properly prepared, and used correctly, real estate options are an excellent way for knowledgeable investors to conserve capital, create leverage, and reduce risks. Investors and clients who may be short on capital may find options a good

Construction Plans 

Sponsors and owners considering financing the construction of commercial real estate projects need to know how lenders evaluate a project's overall risk. Such understanding increases the likelihood that a developer's application for financing will be approved. Lenders view construction loans

Understanding Today's Underwriting Criteria Makes Refinancing Easier 

With historically low interest rates still available, many property owners are seeking to refinance their loans. However, they should be aware that today's lenders underwrite real estate values far differently than in the past by using a relatively new set

More Money 

Commercial real estate developers often use federal, state, and local tax incentives, including historic rehabilitation credits, brownfield redevelopment programs, and tax increment financing, to reduce their projects' costs. However, the arsenal of tax incentives is much more extensive than many

Master Plans 

Financing a commercial real estate project based on its rental stream presents many challenges for property owners. These challenges intensify when deficiencies arise from vacant space, scheduled lease expirations, tenant concessions such as free rent, or other lease attributes that

SBA Solutions 

In the hyper competitive commercial real estate marketplace, successful brokers and agents can utilize a relatively little known yet highly effective financing source to help clients secure the ideal property for their needs. The Small Business Administration 504 loan program