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 1st, 2021 Today’s deal spotlight takes us to an Oak Cliff Office Building in Dallas01 April, 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 a...
Market Updates State of the Market March 2021 Terrydale Capital(TC) is reinforcing its commitment to sourcing high-level capital solutions for clients01 March, 2021 · 5 min read Terrydale Capital(TC) is reinforcing its commitment to sourcing high-level capital...
DEAL SPOTLIGHT February 18th, 2021 Today’s spotlight centers on the successful acquisition financing of a multi-family property in Las Vegas that is 100% leased to military veterans18 February, 2021 · 5 min read Today’s spotlight centers on the successful acquisition...
DEAL SPOTLIGHT February 11st, 2021 Today’s spotlight centers on the successful acquisition financing of a multi-family property in Las Vegas that is 100% leased to military veterans12 February, 2021 · 5 min read Today’s spotlight centers on the successful acquisition...
DEAL SPOTLIGHT February 3rd, 2021 Today's spotlight centers on the successful cash-out refinance of a multi-family property in Garland, Texas03 February, 2021 · 5 min read Today's spotlight centers on the successful cash-out refinance of a multi-family property in...
Market Updates NNN Demand on the Rises The onset of the COVID-19 pandemic has sent waves of volatility through global economies and industries, and real estate is no exception01 February, 2021 · 5 min read Triple net lease properties prove a reliable investment...
Market Updates 2020 Year Review Terrydale Capital 2020 Year Review20 January, 2021 · 5 min read "Want to receive Weekly Market Updates, Deal Spotlights, Off-Market Opportunities, and Referral Rewards such as a Peloton?More Deals and Updates
DEAL SPOTLIGHT January 18th, 2021 Today we’re turning the spotlight on an apartment building in Arlington, Texas18 January, 2021 · 5 min read Today we’re turning the spotlight on an apartment building in Arlington, Texas. The 44-unit multi-family property proved to be...
DEAL SPOTLIGHT December 21st, 2020 Today we’re looking at the financing of a ground-up SFR construction project in Sugar Land, TX21 December, 2020 · 5 min read Today we’re looking at the financing of a ground-up SFR construction project in Sugar Land, TX. Our Client,...