Commercial Real Estate Market Update | May 2022

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 very active in the market as they’ve had to adjust underwriting parameters due to the volatile market.

Debt Funds & Bridge Lenders: Rate Range of 4.35% – 7.99%

Debt funds are still 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 4.45%-5.65%

CMBS and the CLO market have recently had challenges due to the swift change in market rates. Buyers are being more cautious and we anticipate leverage to pull back for the next quarter until the market stabilizes. 

Commercial Banks: Rate Range of 4.75%-5.75%

Commercial Banks are still winning a lot of deals in the current market. 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 4.50% – 5.50%

CUs are continuing to get loans done in markets where many other conventional lenders have trouble. We are still closing loans with CU’s in many tertiary markets.

Fannie & Freddie: Rate Range of 4.25% – 5.45%

Recently, Multi-family investors in the “small balance” space have shifted away from these executions on acquisitions due to underwriting constraints that are bringing down loan dollars. Investors that are coming out of construction and bridge loans are locking in their term with non-recourse debt. 

FHA: Rate Range of 3.70% – 4.50%

For developers that can afford the timing constraints, this is the best execution for multi-family development. We are seeing many of our clients who are in a refinance situation take this option for newly stabilized properties.

Life Company: Rate Range of 3.00% and up

Actively lending on all asset classes. Contact Us to learn more.

Mezz/JV/Equity:

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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*Rates are estimates and based on assumption of Max LTV. Lower LTV options would allow for lower rate options in the market