- 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
- FHA Facts
In today’s tight credit market, multifamily owners and developers are challenged with finding financing that works now as well as in the uncertain future. In such turbulent times, the Federal Housing Administration loan programs serve as good, reliable sources of
- 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
- 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
- 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
- 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
- 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
- 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
- Know Your REITs
Today's almost instantaneous access to financial information along with corporate governance improvements have dramatically altered the commercial real estate landscape for investors interested in diversifying through real estate investment trusts. This additional capital has put non exchange traded REITs on
- VRDN Value
Commercial paper is one of the primary capital sources in today's global financial markets. Fortune 500 companies and other large corporations regularly sell commercial paper to finance many types of expenditures. However, security registration requirements, high transaction costs, public disclosure
- Changing of the Guard
Family-run firms make the leap to institutional fundraising.
In terms of large assets, the real estate investment landscape is dominated by a handful of firms. However, a great many more investment firms manage small funds or are run as a family legacy, encompassing multi-generational family members.
- Knowing the Lease
Understanding who is paying for what can help improve communication between real estate pros and clients.
- Basic Training
Commercial real estate has experienced a dynamic market shift during the past five years that has affected nearly every aspect of the industry. As the slow economic recovery remains fragile, many commercial property owners and investors wonder if they can
- Lender Talk Tips
Maximize your role in discussions with your financing partner.
It's a good time to be a commercial real estate broker.
Sales volume for commercial real estate properties for the first half of 2015 was up 36 percent year over year, according to Real Capital Analytics. Vacancies c
- Knowing the Negative
While the intricacies can seem boring and irrelevant at times, understanding the effects of both positive and negative leverage environments on cash-on-cash returns is essential.
- FHA to the Rescue
While typical FHA loans range between the tens of thousands and hundreds of thousands, many FHA borrowers are also using these programs to finance projects over $100 million.
- Off Balance
“We are looking for a relationship.” “We are a relationship bank.” Often borrowers hear these phrases when requesting a commercial mortgage loan from a bank however, in these circumstances, relationship is really just a marketing friendly code word for compensating
- Restructuring Rights
Credit tenant lease, or CTL, financing can be an attractive alternative to traditional real estate loans. Owners and developers with investment grade tenants can take advantage of CTL financing to obtain long term, fixed rate loans up to the full
- Incenting Development
Use of the Low-Income Housing Tax Credit program continues to encourage developers to provide quality affordable housing that targets the needs of the state.
- Taking Credit
In the current economic climate, creative thinking is critical when it comes to securing the financing needed to purchase or rehabilitate real estate. With underwriting standards still extremely tight, banks remain less likely to lend, and when they do, loan
- Mining Gold
Research from the likes of BDO and NAREIT finds that Real
Estate Investment Trusts are facing performance risks, potential market
volatility, and heightened attention from investors after outpacing the
Standard & Poor's 500 during most of 2016.
REIT fund managers can either follow or ignore guidance on the
financial opportunity that commercial building energy retrofits offer to
maximize earnings and sustain a competitive advantage. Ignoring
guidance presents major performance risks.
- Cultivating Greatness
- Post-Bank Lending
Are borrowers making a shift to alternative financing sources?
Before 2008, lending decisions were generally driven by the economics of loan volume. The priority of making money through loan origination was hard-coded into the commercial banking culture, as compensation was based on loan volume not loan perfo
- Savvy Gifting
When Richard Juge, CCIM, had a property sitting on the market for some time, he found the best way to dispose of it was to donate it to CCIM Foundation, resulting in benefits for all parties involved.