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Market Updates

Commercial Real Estate Market Update | October 2022

Brian Gramlich- TDC Founder and CEO

October 27th, 2022 · 4 min read

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 9.75%-14%

Private Money lenders continue to stay active. Due to market volatility, private debt is one of your best loan executions to ensure a timely close, despite higher rates.

Debt Funds & Bridge Lenders: Rate Range of 7.50% – 10%

Just like the rest of 2022, the majority of our loans are going through debt funds. These funding sources are able to adapt quicker than conventional lenders and can get deals done at better leverage points. 

CMBS: Rate Range of 6%-7.50%

CMBS has seen some challenges lately due to market volatility. We expect their loan origination volume to remain somber until rates flatten out. 

Commercial Banks: Rate Range of 6.5%-8%

We currently have many transactions actively closing with banks. Most transactions are development, shorter-term refinances, and/or rehab projects. Most banks are changing guidelines in real-time as they adjust to the market.

Credit Unions:  Rate Range of 5.50% – 8.00%

These firms continue to be a good option for our smaller market transactions.

Fannie & Freddie: Rate Range of 5.50% – 7.50%

Recently, we’ve seen these rates take a fast hike up which has slowed down the number of deals going in this direction. We anticipate many clients moving back to agency options in the next quarter as the market adjusts.

FHA: Rate Range of 5% -6%

Great option for Multi-Family investors needing to refinance and get maximum loan proceeds. 

Life Company: Rate Range of 5% 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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