Commercial Loans & Mortgage News - July 10, 2001
Plenty of Capital Available
As a recent survey conducted by Multi-Housing News suggests, "debt lenders for the second quarter expressed some worry about the state of the larger economy. However, although there are pockets of market softness, loan delinquencies remain low, and the demand-supply picture for multifamily is still fundamentally sound, they say. Interest rates may not be as low as borrowers might expect or want - having ticked up a few months into the year - but mortgage providers insist this is as good a time to lock in financing as ever. As if to prove a point, lenders claim they have become even busier since the beginning of the year." These same concerns about the economy are being reflected in underwriting and "sizing" standards for most commercial property types among the debt providers.
We're still seeing relatively strong demand for acquisition financing, as investors continue to trade properties and look for ways to capitalize on commercial opportunities. REITs are playing a role by divesting some of their holdings and opening up supply to private and institutional investors.
Although lenders may take a slightly more cautious look at underwriting an asset's NOI, there is still plenty of capital available to finance investments with solid fundamentals. Where lenders may tighten their LTV restraints, we believe there will be an increased role played by opportunistic mezzanine funds. Often times, investors will look for less expensive mezzanine debt rather than raise additional equity, and where the delta between debt and equity exist we'll see the mezz providers front and center.
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Chief Executive Officer Peter Slaugh founded Steelhead in 1999. In the relatively short period since its inception, Slaugh has built Steelhead into a leading resource for debt and equity placement nationwide. Slaugh is primarily engaged in growing the company and its lender relationships, as well as working on financings.
San Francisco Offices
With an extensive lender network, Steelhead Capital has built its reputation on structuring commercial loans requiring both debt and equity placement. Fluctuations in the capital markets present significant challenges for investors and we are pleased to provide financing as well as guide and advise clients through the process. Whether you are looking for apartment financing, commercial financing, mezzanine financing, or creative "out of the box" real estate loan alternatives, we can help.
For apartment loans below $2 million, we have a small apartment loan program with extremely competitive rates. For apartment loans and commercial mortgage loans above $2 million, we provide direct access to the country's most aggressive lenders. Make Steelhead Capital a part of your commercial real estate financing success. We look forward to hearing from you soon.
Please click here for your confidential and complimentary loan review. Are there more questions that you'd like answered? Contact us online, or call our executive team directly in our new San Francisco office at 888-951-6600.
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