Commercial Real Estate Market Update | August 2022

Terrydale Capital is actively providing capital solutions to our clients. We are constantly in discussion with our capital market resources and identifying new resources that have become more active in this new environment.

A quick snapshot of what we are seeing:

Private Money: Rate Range of 8.00%-14.00%

Private Money lenders have been seeing a lot of requests leading to new private money options coming into the market. We are now able to provide direct loans through our own proprietary offering.

Debt Funds & Bridge Lenders: Rate Range of 5.50% – 8.99%

These firms are picking up a lot of opportunities banks are currently missing the mark on. In development and transitional properties, we are seeing debt funds win the most traction.

CMBS: Rate Range of 5.50%-6.50%

CMBS is still in the market and providing capital but pricing accordingly. We are seeing a lot of creative structures and requests to get deals done such as rate buydowns to offset short-term debt-service risk.

Commercial Banks: Rate Range of 5.25%-6.50%

We’re seeing a range of diverse strategies from banks. While some have completely pulled out of the market and are sitting on the sidelines until Q4, others are continuing business as usual. It helps to have existing relationships with lenders in this market in order to understand their programs and accurately underwrite, which will make or break your deal.

Credit Unions:  Rate Range of 5.00% – 6.50%

As many investors look to tertiary markets for higher cap opportunities, we are seeing CU’s get transactions done and continue to be a competitive option for investors.

Fannie & Freddie: Rate Range of 4.50% – 5.45%

As commercial banks have raised rates and adjusted leverage, Agency has emerged as a good option to get an attractive rate and max leverage.

FHA: Rate Range of 3.70% -4.50%

For developers that can afford the timeline, this is the best execution for Multi-Family development. We are seeing clients take this option for newly stabilized properties as well, mostly in refinance situations.

Life Company: Rate Range of 5.00% and Up 

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

Mezz/JV/Equity:

Investors have many ways to structure a deal in today’s market. Mezz and Equity structures allow our clients to seek larger opportunities with options to position their transaction with as little as 5% down for qualified experienced investors.

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

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