fbpx
Market Updates

State of the Market | November 2020

Terrydale Capital is actively providing capital solutions to our clients

Terrydale Capital

13 November, 2020 · 5 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 in the November’s State of Market:

Private Money:  Rate Range of 6% – 14%

Very active. We are seeing a number of firms organizing loans but have been requiring more equity. Rates have a very wide range depending on the closing timeframe, loan size, location, sponsors, and current performance.

Debt Funds & Bridge Lenders:  Rate Range of 3.50% – 12%

Most debt funds that are staying in business are in business and lending. Larger firms focused on transactions above $10MM and stabilized are competing with Commercial Banks and institutional capital again. In the last three months, we’ve seen a trickling in of firms lining up funds to put out money. On non-stabilized transactions, we are seeing the bridge start around 4.75%.

CMBS:  Rate Range of 3.95 – 5.00%

CMBS is back. This sector has slowly picked up steam since July. We are seeing them find a way to offer opportunities that clients are seeking non-recourse and max LTV. They’re primarily competing in the Retail, Industrial, and Multi-Family space.

Banks:  Rate Range of 3.10% – 5.50%

Banks have been pushing rates down to compete on quality transactions. Leverage is still lower than where it has been historically and usually sees quotes in the 65% +/- range. Commercial Banks are working with fewer staff and staff working from home still which has continued to see delays in closing processes.

Credit Unions:  Rate Range of 3.25% – 5.00%

CU’s have become very active and aggressive on quoting. They, like commercial banks, have been dealing with challenges to process loans timely due to covet-related challenges.

Fannie & Freddie:  Rate Range of 2.65% – 4.50%

Agencies are back in the market and pushing a lot of volumes right now. Loans above $10MM with lower leverage are seeing very aggressive rates. We will likely see spreads starting to increase and expect this to happen until guidance from the government comes out with regard to funding. This space is still holding back Covid reserves which allow some other financing alternatives to gain traction where otherwise the borrower(s) would have stuck with Agency.

FHA:  Rate Range of 2.25% – 4.35%

Still very active and allows the most competitive structures. These loans will take a minimum of 4-6 months and will require additional costs we are seeing long-term investors move to this space to take advantage of the program.

Life Company:  Rate Range of 2.30% – 4.5%

Life Co. is also very much back in the commercial lending space. Leverage and options are closer to where we saw them pre-Covid. Like Agency we are seeing some holdbacks for Covid on a deal-by-deal basis.

Equity:  

Many private firms are being more creative today to get deals done and with a lot of money sitting on hold that was anticipated to be allocated in 2020, we are seeing more and more activity from Equity firms.

 

 

Brian Gramlich
Terrydale Capital, LLC
O: 214.241.4230 x 101
5740 Prospect Ave, Ste 3001
Dallas, TX 75206
bg@terrydalecapital.com

“Want to receive Weekly Market Updates, Deal Spotlights, Off-Market Opportunities, and Referral Rewards such as a Peloton?

More Deals and Updates

$8,822,684 Land Loan Refinance | Salado, Texas

$8,822,684 Land Loan Refinance | Salado, Texas

DEAL SPOTLIGHT $8.8M Land Loan Refinance | Salado, Texas11 August, 2022 · 4 min readToday's Deal Spotlight centers around the closing of a land refinance loan that's valued at $8.82 million. Located in Salado, Texas, the land deal was finalized with a WSJ prime + 1%...

Multi-Family Refinance | Saint Joseph, Missouri

Multi-Family Refinance | Saint Joseph, Missouri

DEAL SPOTLIGHT Multi-Family Refinance| Saint Joseph, Missouri4 August 2022 · 3 min readToday’s Deal Spotlight centers on the $2.9 million refinance of a multi-family commercial asset in Saint Joseph, Missouri. This 76-unit property was owned by multiple parties with...

State of the Market | July 2022

State of the Market | July 2022

Market Updates Commercial Real Estate Market Update | July 2022July 27th, 2022 · 4 min readTerrydale Capital is actively providing capital solutions to our clients.   We are in constant discussions with our capital market resources and are also identifying new...

1,676,250 Industrial Acquisition | Tyler, Texas

1,676,250 Industrial Acquisition | Tyler, Texas

DEAL SPOTLIGHT $1,676,250 Industrial Acquisition| Tyler, Texas20 July, 2022 · 3 min readToday’s Deal Spotlight takes us to Tyler, Texas, and centers on the $1.67 million acquisition of an industrial real estate asset. Reluctant to settle for a rate in the low 5.00s...

SBA 7(a) Loans Refinancing to SBA 504

SBA 7(a) Loans Refinancing to SBA 504

LEARN SBA 7(a) Loans Refinancing to SBA 504July 21st , 2022 · 6 min readFor small business owners, the recent rule change that allows SBA 7(a) loans to be refinanced with an SBA 504 at up to 85% of the loan value is cause for celebration. While both are solid options...

$3,171,000 Retail Acquisition | Dallas Texas

$3,171,000 Retail Acquisition | Dallas Texas

DEAL SPOTLIGHT $3,171,000 Retail Acquisition| Dallas, Texas13 July, 2022 · 3 min readToday’s Deal Spotlight takes us to Dallas, Texas, and centers on the $3.17 million acquisition of retail assets. It was also important for our client to have enough capital to cover...

When To Arrange a 1031 Exchange

When To Arrange a 1031 Exchange

LEARN When to Arrange a 1031 ExchangeJuly 7th , 2022 · 4 min readIf you currently own an investment property but are considering selling it in the near future to purchase another property, you might want to take advantage of a 1031 tax-deferred exchange. By using a...

State of the Market | June 2022

State of the Market | June 2022

Market Updates Commercial Real Estate Market Update | June 2022June 29th, 2022 · 4 min readTerrydale 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...

Texas 3-in-1 Multi-Family Financing

Texas 3-in-1 Multi-Family Financing

DEAL SPOTLIGHT 3-in-1 Multi-Family Acquisition | Garland, Texas22 June, 2022 · 3 min readToday’s Deal Spotlight centers on the acquisition of a commercial multifamily asset in Garland, Texas. From the outset, it was clear that factors surrounding liquidity, expiration...