2021 Commercial Real Estate Trends

We understand how times of upheaval can be especially challenging for property owners needing to refinance a maturing loan, acquire a new property, or perhaps needing to access cash from the equity in one’s property. With the inflation headwinds, many borrowers are taking the opportunity to refinance into historically low rates.

Some borrowers seek the less stringent underwriting requirements of bridge loans to fill the gaps of lack of capital currently in the markets. Owner-user borrowers flock to the low rates and high leverage SBA programs offer with the CARE ACT incentives. Post COVID underwriting requirements are different, with a thorough analysis of the borrower, asset type, location, and 2019 operating performance. Borrowers should be prepared for terms to be significantly different pre-covid. Although we’re seeing some easing in underwriting criteria moving toward the 70 to 75% leverages, sponsors need to prepare for lower leverages and possible reserves.

For Stabilized assets, long-term non-resource options are opening, offering historically low, long-term fixed interest rates with some cash-out available but with higher debt yields and lower leverages. The properties in the transition or still recovering from Covid, our 28 years of experience structuring debt for value-add or rehab/retro-fit conversions real estate loans, developing a solid understanding of what is needed to finance these under-performing properties.

For situations where soon is not enough, our capital providers can close transactions in 30 days, and in many cases, under two weeks. We provide you time and liquidity, giving owners in exceptional circumstances a runway to correct the problems and prevent forced foreclosure or bankruptcy due to maturing debt at unreasonable lenders. We will even finance discounted notes.

Non-recourse is available at higher loan amounts. Construction financing during the post-COVID-19 has become incredibly challenging. Project sponsors should expect tighter underwriting, higher cost of capital, and more limited options. However, there’s still money for multi-family ground-up construction focusing on affordable housing, with many lenders considering SFR developments for other property types is deal-specific.

We are here to help you navigate the post-COVID capital markets. These are unprecedented times, but financing is still available. Being a national capital markets intermediary advisory firm lead by Kimberly Kirk, President, who has over 28 years, we have been through before, the most recent being the collapse of 2008. Eleanor Financial was there to help borrowers then, as we are here to help borrowers now.

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