Market Updates

State of the Market March 2021

Terrydale Capital(TC) is reinforcing its commitment to sourcing high-level capital solutions for clients

Gregory Gali

01 March, 2021 · 5 min read
Terrydale Capital(TC) is reinforcing its commitment to sourcing high-level capital solutions for clients. Activities to preserve existing capital market resources and identify new ones are a key part of our strategy in the current environment.
 

Here are some snapshots of what we’re seeing:

 

Private Money: Rate Range of 6% – 14%
The private money space we are seeing a lot of activity. TC anticipates that as the market continues to adjust and if treasuries continue to go up, this space will be very active as we progress in to Q2. 
 
Debt Funds & Bridge Lenders: Rate Range of 4% – 9%

Debt funds, like private money, are becoming more aggressive, with rates inside conventional financing options. As treasuries adjust and continue to increase, debt funds may provide a safe option for secure execution and hedging against rate risk with institutional funding options. 

 

CMBSRate Range of 3.35% – 4.5%
Since the previous market update, CMBS have become even more competitive and are a preferred option for investors seeking longer-term, interest-only options with non-recourse. Mostly active in the retail and industrial space, however, since agencies have been requiring COVID Reserves, some investors recently have turned to CMBS as a competitive multi-family option, as well.

Commercial Banks
: Rate Range of 2.55% – 5.50%
A significant number of regional banks are increasing niche lending for specific assets and situations. They have also been pivotal in helping Terrydale Capital navigate loan executions during COVID. This level of innovation paints a positive picture for future transactions. 

Credit Unions
: Rate Range of 3.25% – 4.5%
CUs are organizing loans with pre-pandemic leverage at aggressive rates. TC is tapping into this trend to provide clients with high leverage options on all asset types. 

Fannie & Freddie
: Rate Range of 2.95% – 4.25%
While agencies have cut back COVID reserves, they continue to reign supreme on Multi-Family execution by providing more aggressive structures for transactions that have experienced sponsors and quality deals.

FHA
: Rate Range of 2.55% – 4.35%
These are still very active, especially for competitive multi-family loan structures. FHAs take a minimum of four to six months and require additional costs, but with rates on the move, a loan execution with an investment horizon of fewer than 15 years is a gamble. 

Life Company
: Rate Range of 2.30% and up
TC is utilizing LifeCo more than ever. This is a diverse space with alternative financing structures for investors in all asset types. Give us a call for more info. 

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 transactions, starting at 5% down for qualified, experienced investors.

 

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