Commercial Real Estate Financing State of the Market | April 2023

At Terrydale Capital, we are dedicated to offering our clients a diverse range of capital solutions. We make sure to stay up-to-date with the prevailing commercial interest rates in the market by consistently connecting with our capital market resources and exploring fresh sources that have gained momentum in the current scenario. We invite you to stay informed by checking out our latest financing update, which provides a concise summary of the present market conditions and how we are leveraging them to our advantage.

Private Money: Rate Range of 12%-14%

As financial markets continue to be unpredictable, an increasing number of individuals are looking towards alternative investment options. Private money loans are a valuable opportunity for those seeking to minimize risk and attain financial growth, as they offer short-term flexibility.

Debt Funds & Bridge Lenders: Rate Range of 8.50% – 10.50%

Debt funds have gained popularity among investors due to their competitive interest rates and convenience. They present a great opportunity for leveraging and generating high returns, particularly when investing in properties that have the potential for added value, such as buildings or land.

CMBS: Rate Range of 5.75%-7.25%

Although there has been a slowdown in CMBS loan activity, experts are forecasting a rebound in the market as rates stabilize.

Commercial Banks: Rate Range of 7.50%-9.00%

Traditional banks are modifying their lending practices to stay competitive amidst the volatile market conditions. While some projects are still underway, the focus has shifted towards development, refinancing, and rehabilitation. To maintain stability, banks are being more selective in their underwriting processes and may prioritize established clients over new ones when considering potential investments.

Credit Unions:  Rate Range of 6.50% – 8.00%

Credit unions generally provide lower rates compared to other lenders, but they also use a more aggressive lending approach. It’s worth noting that their thorough global underwriting process may lead to longer closing times, especially in the current market.

Fannie & Freddie: Rate Range of 5.50% – 7.25%

Despite the ongoing market turmoil, Fannie Mae and Freddie Mac transactions continue to thrive. We anticipate that there will be sustained interest in agency options in the future, as investors reassess their strategies.

FHA: Rate Range of 5.00% -6.00%

The rising interest rates of FHA loans in commercial real estate create an opportunity for borrowers to transition smoothly from construction and bridge loans. This is particularly beneficial for those who are seeking financial stability.

Life Company: Rate Range of 6.0%-7.5% 

Actively lending on all asset classes. Call us to learn more.

Mezz/JV/Equity:

In today’s market, there are a wide range of options available for structuring a deal, and Mezzanine and Equity options enable our clients to pursue larger ventures. Qualified and experienced investors may even be able to secure a deal with as little as a 5% down payment.

*Rates are estimates and based on the assumption of Max LTV. Lower LTV options would allow for lower rate options in the market