The ten years Treasury is now at 1.50%, just ten bps above the all-time low (summer 2016). The bond market continues to ignore U.S. economic reports and concentrate on global fears. Remember when positive Consumer Confidence and Durable Goods reports would drive yields up? Those days are in the rearview mirror as the markets are obsessed with gloom on the horizon. U.S./China trade: the consensus is that China is preparing for a protracted dispute. Brexit: The suspension of Parliament (suggested by Boris, approved by the Queen) could result in a messy and disorderly split between the U.K. and the E.U., with unforeseen consequences that are hard to quantify. Hong Kong: another potentially volatile situation in a major trading hub.
Despite the volatile economic environment, our borrowers are taking advantage of low rates place a cash-out refinance debt on their properties to recapture the investment they made in acquiring, upgrading and repositioning their properties instead of selling. Our capital provider is offering non-recourse ten-year fixed-rate terms, 30-year amortizations starting in the low to sub ‘4s for stabilized assets on loan sizes ranging from $3,000,000 to $35,000,000 up to 75% leverage
We’re also funding non-recourse bridge debt to 85% of the value with flexible loan structures with interest-only terms up to 6 years (inclusive of extension options) for value-add or repositioned properties with floating rate pricing starting at LIBOR + 275.
Multi-family is a big commercial real estate trend in 2019. Multifamily is still very popular with investors. The volume of multifamily transactions has continued to increase to pre-recession levels... Reports indicate this trend is unlikely to slow down anytime soon.
EF President Kimberly Kirk, states even though ground-up construction is complex and challenging, it’s the most rewarding for all parties involved. “Not only are you increasing the investor’s portfolio, you’re creating jobs both temporary and permanent which grows the community. With ground-up multi-family, you’re improving a family’s life. There’s nothing more gratifying! ” Construction is a vital part of America’s economy.
Eleanor Financial offers numerous options for ground-up construction Call or email for details.