Browse Tag: refinance

Refi Roundup: Ten Notable Refinance Deals This Month

As long as the Federal Reserve continues to hold down the cost of borrowed capital, the market to trade in old financing for better terms on commercial property remains hot. Nationally, here are ten notable refinance deals in commercial real estate. Some went to fixed-rate, some went to floating-rate, but all went to the closi one more time.

 

Refi Roundup: Six Shopping Center Refinance Deals

Kenner, Louisiana. Strip shopping mall.

Fluctuations in the cost of capital serve to change the price of commercial property opportunity on a daily basis. Investors, owners, and brokers: here’s a handful of the recent refinancing deals for shopping centers culled from the national marketplace in commercial real estate:

(Photo credit: Wikipedia)

Refi Roundup: A National Look At The Summer’s Refinancing Deals

Percent Symbols - Best Percentage Growth or In...

In commercial property, the only constant is change.  Notes come due, loan interest rates float, property financial performance is uncertain, spreads narrow and widen, baseline assumptions go by the wayside.  Sometimes, it’s just time to go get some new capital and refinance.

Let’s take a look around the national refinancing market for some recent commercial loans:

 

(Photo credit: SalFalko)

 

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The CREED Act: Toward Refi Options For Commercial Mortgages

Capitol Hill, Washington DC

Owner-occupied refinance options could get a lot more forgiving, if the votes go the right way on the Hill. In a letter from NAR President Gary Thomas to Senators Mary Landrieu (D-LA) and James Risch (R-ID), NAR support for a key commercial real estate bill is spelled out. The issue addressed by the bill, S.289 “Commercial Real Estate and Economic Development Act of 2013”, is the impending maturity of $1.3 trillion in balloon mortgages.  Between 2013 and 2016, a wave of maturities is headed to holders of these instruments and market options for refinance being what they are,  there’s a real risk of higher loan defaults, delinquencies and business failures. The bill doesn’t create a new program for such mortgageholders.  Instead, it temporarily allows commercial real estate projects to be eligible for the already-existing SBA refinance program called 504/CDC. NAR President Gary Thomas continues:

Nearly $1.3 trillion of commercial real estate loans with balloon mortgages will  mature between 2013 and 2016, with very limited options for small businesses  and other commercial property owners to refinance. If not addressed, the  swelling wave of maturities could result in higher loan defaults, delinquencies,  and business failure – further endangering economic recovery.

An expansion of project types eligible for the SBA 504/CDC refinance program will alleviate some of that pressure by allowing small businesses to refinance certain owner-occupied commercial buildings. This helps ensure that small  businesses successfully persevering through tough times will not suddenly fail  for the lack of capital. Also, extending the 504/CDC refinance program’s  eligibility to include commercial real estate properties for five yearswill provide  more time for private capital to return to the market and help prevent  commercial financing from becoming yet another drag on economic recovery.

NAR strongly encourages the timely passage of S. 289, a critical component to  our nation’s economic recovery. REALTORS® thank you for your diligent work  to bring confidence and strength back to our finance system.

Read the entire letter here.  Examine the SBA refinance program here. (Photo credit: KP Tripathi)