State of the Market 11.13.2020
Terrydale Capital is actively providing capital solutions to our clients
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%
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 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 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 on 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 seeing quotes in the 65% +/- range. Commercial Banks are working with less 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 volume 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 regards to funding. This space is still holding back for Covid reserves which allows 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 allowing 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.
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.
Terrydale Capital, LLC
O: 214.241.4230 x 101
5740 Prospect Ave, Ste 3001
Dallas, TX 75206
More Deals and Updates
DEAL SPOTLIGHT April 8th, 2021 Today, we’re taking a look at a loan request on a property that was a former auto-dealership turned office space8 April, 2021 · 5 min read Today, we’re taking a look at a loan request on a property that was a former auto-dealership...
Market Updates Multi-Tenant Industrial Real Estate22 July, 2021 · 5 min readThe rise of multi-tenant industrial real estate has been a long time coming. The writing has been on the wall since the rise of online shopping in the late 90s. All the forecasts and...
DEAL SPOTLIGHT Memphis SFR Cash-Out REFI10 June, 2021 · 3 min readToday’s Deal Spotlight takes us to Memphis, Tennessee, where our Client was seeking a cash-out refinance of over 30 properties in their SFR Portfolio. Despite being an experienced investor with many...
DEAL SPOTLIGHT Nebraska Multi-Family Acquisition03 June, 2021 · 3 min readToday’s deal spotlight centers on the acquisition of a $4,490,000 multifamily property in Omaha, Nebraska. This specific Apartment Complex caught the attention of our Clients, who were out of...
DEAL SPOTLIGHT Fannie Mae Green Program Multi-Family Acquisition27 May, 2021 · 3 min readToday’s deal spotlight centers on the acquisition of a multi-family property in Waco, Texas. This was a rather intricate assignment, with the Borrowers seeking Agency experience...
DEAL SPOTLIGHT Creative Refinance in Waco, TX20 May, 2021 · 3 min readToday’s deal spotlight takes us to a multi-family property in Waco, Texas. Like many others, Waco’s real estate market was negatively impacted by COVID, which affected the borrower's ability to...
DEAL SPOTLIGHT Dallas SBA Loan Closed Today’s deal spotlight takes us to an Oak Cliff Office Building in Dallas06 May, 2021 · 5 min read Today’s deal spotlight takes us to an Oak Cliff Office Building in Dallas, where the TDC team facilitated a cash-out refinance for...
DEAL SPOTLIGHT Dallas SBA Loan Closed Today’s deal spotlight takes us to a multi-family property in Fort Worth29 April 2021 · 5 min read Today’s deal spotlight takes us to a multi-family property in Fort Worth. As a first-time investor in the Texas market, our Client...
DEAL SPOTLIGHT April 22nd, 2021 Today’s deal spotlight takes us to A-1 Self Storage in Houston, TX22 April 2021 · 5 min read Today’s deal spotlight takes us to A-1 Self Storage in Houston, TX. This was a particularly challenging assignment, as we navigated SBA and...
DEAL SPOTLIGHT April 15th, 2021 Today’s deal spotlight focuses on the refinance of a retail property in Little Elm, Texas15 April, 2021 · 5 min read Today’s deal spotlight focuses on the refinance of a retail property in Little Elm, Texas. The purpose of the loan was...