Commercial Real Estate Market Update | June 2022

Terrydale Capital is actively providing capital solutions to our clients. We are in constant discussions with our capital market resources and are also 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%-14.00%

Private lenders are very active in the market right now as lenders have had to adjust underwriting parameters in a volatile market.

Debt Funds & Bridge Lenders: Rate Range of 4.75% – 8.99%

Debt funds are still in many cases more competitive than conventional financing options on acquisition financing. They are providing additional leverage above most institutional banks. Debt funds have more flexibility to increase rehab dollars as well, especially on larger ($10MM++ loan) transactions.

CMBS: Rate Range of 4.65%-6.50%

CMBS and the CLO market have been having challenges recently with a swiftly moving rate market. B buyers are more cautious and we anticipate leverage to pull back for the next quarter until the market stabilizes.

Commercial Banks: Rate Range of 4.50%-6.50%

Commercial Banks with strong balance sheets have a competitive edge to stay tight on pricing and provide fair and competitive terms on quality opportunities. 

Credit Unions:  Rate Range of 4.50% – 6.00%

CUs are continuing to get loans done in markets where many other conventional lenders have trouble.

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

We are starting to see investors choose this execution more recently as commercial banks have raised rates and adjusted leverage whereas Agency now is looking more attractive. We anticipate pricing to continue to adjust in the next quarter which will move investors looking at conventional transactions to move back toward agency executions.

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, most are refinance situations.

Life Company: Rate Range of 4.00% and Up 

Actively lending on all asset classes. Contact 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.

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