Spring Blooms for Commercial Real Estate

The long winter for commercial real estate is finally melting. The bank Ice Age appears to be melting for several property types with apartments leading the pack.

I am working with several mid sized banks on apartment and mixed use property refinancing. I am also working on several FHA 223(f) and FNMA apartment loans. Several new lenders approach us every week with their loan programs looking for deals.

We can now offer the best agency rates for apartment refinances. Using FNMA we can match competitors quotes and since FNMA processing is delegated close months quicker than my forever competitor, from my Fannie Mae brainwashing days.
Spreads are reported as low as 200 over for large select deals.

Retail and Office have not recovered as strongly due to over building, lack of jobs still and lack personal income growth for the middle class for the last 10 years. The over leverage of everything by using home equity has ended resulting in massive value decreases in home values and then to fear of buying a depreciating asset.

The home builders have not built much for three years and will not soon so at some point the value decline will end and consumer confidence in home values will return.

In the mean time apartments are hot and rents and occupancies are climbing. Cap Rates are once again reported in the low 6% for better Chicago Apartments and lower for very large transactions.

APARTMENT LOANS LINK

Happy Easter

Scott