Commercial Real Estate Market Update | September 2022

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 10.00%-14.00%

Private Money lenders continue to stay busy. In today’s market, their rates are less of a pill to swallow for investors as they are within a small range compared to some conventional options, but can get done in half the time with half the risk of waiting on approvals.

Debt Funds & Bridge Lenders: Rate Range of 7.50% – 9.50%

The lion’s share of our business today comes from these funding sources. Due to the swift changes in the market, these sources are able to adapt quicker than conventional lenders and get deals done at better leverage points.

CMBS: Rate Range of 6.00%-7.50%

CMBS continues to be a good option for deals that are needing non-recourse and longer-term fixed loans.

Commercial Banks: Rate Range of 6.50%-8.00%

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 4.80% – 6.50%

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 5.00% -6.00%

For developers that can afford the timeline, this is the best execution for Multi-Family development. We are seeing clients utilize this option for newly stabilized properties as well, mostly in refinance situations.

Life Company: Rate Range of 5.00% 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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