The commercial real estate capital markets have recovered from the dark days of the global financial crisis bringing liquidity to Main Street, USA. Large balance loans delivering $25+ million to institutional and well-heeled private investors were the first market to recover. Over the last 12 months the small balance market serving-up loans from $1 to $10 million has exploded flooding the market with liquidity.
While the borrowing rules are different from the go-go days of 2005-2006 abundant capital has returned to the market.
Details on Small Balance Loans:
Loan Size: $1-10 million
Loan Term: borrowers can choose from various loan terms. 3-5-7-10 years are the most popular
Amortization: 25 or 30 years with interest only periods ranging from 1 year to full term of 10 years
Rates: Starting in the 2s and going to the 5s
Leverage: Low leverage loans under 65% LTV receive the best pricing. Senior debt plus mezz structures available up to 85% LTV
Recourse: Non-Recourse with carve-outs for “Bad Boy” acts
Collateral type: multifamily rental apartments, senior housing, retail, office, warehouse, industrial, flex, self-storage, hotels, and single tenant NNN leased properties
Collateral type NOT considered: non-income producing properties including land and liquidating assets such as residential for-sale subdivisions and condo projects
If this sounds interesting to you contact David Repka by e-mail at moc.laicnanifnosibnull@evad and provide 5 to 10 bullet points on the opportunity