State of the Market: December 2021
Brian Gramlich- TDC Founder and CEO
16 December, 2021 · 4 min read
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 6% – 14%
We are utilizing many firms in this space right now as we near end of year with investors needing to close in tight windows. We are anticipating these firms will stay busy and as the market continues to stay hot, they are able to get in and out of deals, staying well-funded.
Debt Funds & Bridge Lenders: Rate Range of 3.25% – 7%
These firms the story of 2021 as their rates compete and beat agency financing and many conventional financing on leverage and rate. This will likely continue in 2022 as we anticipate rates to slowly creep up which will put pressure on institutional debt lenders.
CMBS: Rate Range of 2.95 – 5.00%
CMBS has had a strong 2021. They continue to finance many opportunities that banks can’t get to the leverage required by investors, as well as provide an avenue for non-recourse for more institutional investors that need a longer fixed structure.
Commercial Banks: Rate Range of 2.50% – 5.50%
We see a story of the “have” and “have nots” with the banks. Some banks are picking up a ton of business with aggressive lending programs and some can’t compete due to their lending requirements being limited with minimum rates or amortization. This space continues to be a large contributor to Terrydale’s funding solutions as clients need flexibility and new relationships to grow businesses and development opportunities.
Credit Unions: Rate Range of 2.55% – 5.00%
CUs have been consistent with lending parameters this year and are still able to be aggressive on smaller transactions that larger firms are shying away from.
Fannie & Freddie: Rate Range of 3.25% – 4.25%
Still very aggressive on multi-family opportunities nationwide. They have loosened their COVID reserve requirements lately and we anticipate another strong finish to the year and continued aggressive lending options going into Q1 of next year.
FHA: Rate Range of 2.70% – 3.50%
FHA for investors with a long-time horizon or coming out of construction with intentions to hold, still have a very competitive option to utilize these programs. They are still relatively long transaction timelines with higher costs but for the right opportunity they are optimal loan structures for the longer-term holder.
Life Company: Rate Range of 2.20% and up
Actively lending on all asset classes. Still seeking higher loan dollar opportunities generally ($20MM+), however there are a few that are lending in the lower loan dollar space. Please call us for more info.
Investors have many ways to structure a deal in todays 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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