Commercial Real Estate State of the Market: April 2022
Brian Gramlich- TDC Founder and CEO
April 28th, 2022 · 4 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.
Check out quick snapshot of what we are seeing in the Commercial Real Estate Market:
Private Money: Rate Range of 8%-14.00%
Private lenders are being more careful with their funding and we are seeing requests for more equity from sponsors/investors as the market changes.
Debt Funds & Bridge Lenders: Rate Range of 4.15% – 7.99%
Debt funds in most cases are more competitive than conventional financing options on acquisition financing. They are providing additional leverage above most institutional banks and have more flexibility to increase rehab dollars as well especially on larger ($10MM++ loan) transactions.
CMBS: Rate 4.25%-5.65%
Investors seeking non-recourse, max leverage, fixed rate options are still finding it in the CMBS space. We are seeing CMBS compete with Banks and Agencies right now on larger size deals.
Commercial Banks: Rate Range of 3.95%-5.50%
Commercial Banks are winning a lot of deals right now. The volatility of the market has given lenders with strong balance sheets a competitive edge to stay tight on pricing and provide fair and competitive terms on quality opportunities.
Credit Unions: Rate Range of 4.00% – 5.00%
CUs are continuing to get loans done in markets where many other conventional lenders have trouble. We are closing loans with CU’s in many tertiary markets.
Fannie & Freddie: Rate Range of 4.25% – 5.45%
Rates have been increasing sharply this year on these programs. We have seen these two loan executions fall out of favor for acquisition funding as CAP rate compression has continued. We still see multi-family investors choose these options for refinancing stable assets.
FHA: Rate Range of 3.70% – 4.50%
FHA program is seeing a big increase in activity here at Terrydale. For developers that can afford the timeline, this is the best execution for multi-family development.
Life Company: Rate Range of 3.00% and up
Actively lending on all asset classes. Contact Us to learn more.
Investors have many ways to structure a deal in todays 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.
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