Small Balance Non-Recourse Commercial Loans

Liquidity has returned to the capital markets

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