Monday, April 2, 2012
BETHESDA, MD, April 2, 2012 – Beech Street Capital, LLC announced today that it has recruited Mitch Sinberg (top right photo) and Mike Wallace, two experienced originators with extensive agency experience, to open the firm’s new offices in Florida.
“I’ve followed their careers for some time now,” says Chad Hagwood (middle left photo), Beech Street’s executive vice president-originations. “Mike and Mitch have a great track record. They share our commitment to service and going ‘above and beyond’ for our customers.”
Both Sinberg and Wallace come to Beech Street from Grandbridge Real Estate Capital, where they focused extensively on multifamily finance. They arranged first mortgages and equity for permanent, transitional, and ground-up projects for the full range of multifamily and commercial assets in the Southeast and around the nation.
Specializing in multifamily financing, Beech Street closed over $2 billion last year, and ranked third among Fannie Mae lenders nationwide. Beech Street also originates a growing volume of Freddie Mac and FHA loans.
Opening the Florida offices, its 11th and 12th, is part of Beech Street’s ongoing strategy of maximizing its national presence.
“We are filling out our nationwide footprint by opening offices in key markets,” says Grace Huebscher (lower right photo), Beech Street’s president and CEO. “But we only do so when we find an outstanding team. Mitch and Mike fit this criterion exactly.
CLW Senior Housing is a division of CLW Real Estate Services Group, a national, commercial real estate fi rm providing investment sales, multi-market tenant representation, project management, and construction services throughout the United States.
CLW Senior Housing specializes in exclusively representing sellers in the sale of Senior Housing properties.
CLW has sold over $1.5 billion in Senior Housing assets across the nation.
CLW Senior Housing
4301 Anchor Plaza Parkway,
Tampa, FL 33634
Phone: (813) 349-8368
Fax: (813) 349-8739
No doubt, apartments are the poster children of commercial realty markets. Well over 10% growth in new construction starts exists within this sector as vacancy rates remain in the 5% range nationally.
Over $30 billion of securitized mortgage bonds are expected to be issued this year, a mild improvement over last year. CMBS volume will still be only about 10% to 15% of the peak volume witnessed five years earlier. Overbuilding concerns might surface within two years or so, in tandem with new supply and recovering housing markets.
As Core and Core Plus assets reach stratospheric prices, investors are moving into lower-tier properties and to secondary markets for greater value/yield plays. They still favor core properties as inflation hedges, given improving office, retail and industrial leasing fundamentals.
Investors are taking note of rising utility prices taking toll on cash flow performance, portending more expense increases. Rising water and power bills chip away at the bottom line. Additionally, municipal infrastructure costs creep upwards while tax revenues stay flat or decline in many areas causing concern about future property tax bills a few years in the future.
As for current pricing, while treasuries have slightly risen, mortgage spreads over treasuries continue to tighten as lenders see few alternative investments with similar yield and risk profiles when compared to the bond market.
Overall, mortgage spreads over treasuries fall within the 180 to 260 basis point range for most types of institutional-quality properties.
Bank are particularly active for term loans of five year or less, while life insurance companies aggressively compete on lower leverage loans, as well as those properties that are in the process of stabilizing (e.g., forward-delivery loans). Floating rates are nominal, ranging from just below 3% to 5%.
CMBS lenders carve out a niche in funding B and C grade assets, with rates hovering below 5% for 10-year funds based upon full leverage.
Agency lenders and the FHA dominate with the lowest rates in the marketplace, but restricted to multifamily assets. 3.25% to 4.25% is the general rate range for fixed-rate debt of varying terms.
Ms. Jeanne Peck (top right photo), research director for at the Real Estate Capital Institute, comments, “With the mortgage conduits back in the market, nearly at full swing, more competitive spreads and terms resurface-in some cases between life company lenders and CMBS lenders!”
She adds, “It’s a great time to be a borrower for most types of cash-flowing properties.”
The Real Estate Capital Institute® is a volunteer-based research organization that tracks realty rates data for debt and equity yields. The Institute posts daily and historical benchmark rates including treasuries, bank prime and LIBOR. Furthermore, call the Real Estate Capital RateLine at 7RE-CAPITAL (773-227-4825) for hourly rate updates.