For Real Estate Professionals Seeking a Market Edge
Happy New Year from Penstar
In 2010, borrowers may find some relief in the form of readily available capital at more competitive pricing for larger, stabilized assets. As we cited late last year, CMBS lenders are showing signs of re-entering the market, adding renewed competition for insurance companies and other permanent lenders. The market anticipates that such competition will compress spreads for quality stabilized office, industrial, anchored retail, and mobile home properties while increasing the loan to value thresholds beyond the current 60% to 65% levels. The agencies, Fannie Mae, Freddie Mac, and HUD, will continue to absorb most of the multifamily market with their pricing and quoted 80% of value criteria.
The 10-Year Treasury has continued to climb and lenders will be forced to either cut spreads or originate fewer loans as already compressed NOIs will limit loan proceeds. Insurance companies will be announcing their 2010 allocations shortly, which are anticipated to be at or above 2009 levels. We are all excited about getting back to work and having mortgage funds available for quality properties.
We will keep you posted…
Hot Money
Portfolio Lender Seeking Loans from $3,000,000 to &$36;50,000,000 Nationwide
Penstar recently identified a capital provider aggressively seeking to fund permanent loans on stabilized industrial, office, retail, mobile home, and self-storage properties. This non-CMBS lender currently has the most competitive 10-year fixed interest rate of 6% on a 25 to 30 year amortization; and is seeking individual as well as portfolio transactions up to $50,000,000. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.
Helpful Humor
The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week
“‘Attainable’ New Years Resolutions” Gain at least 30 pounds. Procrastinate more….starting tomorrow Get in a whole new rut. Stop bringing lunch from home. I should eat out more. Create loose ends. Get further in debt. Wait around for opportunity. Mope about my faults Never make a New Year’s resolution again! |
30
Day Libor |
10-Year
Treasury |
Prime |
0.32% |
3.74% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367