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| Claudia Steeb |
CHICAGO, IL – Various coronavirus stay-at-home orders affected retail investment sales transactions in the early days of the pandemic, but insurance companies and local bank lenders kept capital at the ready for deployment into retail.
“There is a myth that retail is unfinanceable today, and that’s absolutely untrue,” said Christopher Drew, Senior Managing Director, Capital Markets, JLL Americas.
“When
structured appropriately, plenty of financing is available to investors. In
fact, certain lenders, like local and regional banks, never stopped lending.”
Record-low
interest rates are also bringing new investors to the sector, according to Claudia
Steeb, Managing Director, Capital Markets, JLL Americas.
“Investors notice these rates and see an opportunity to expand their holdings and balance out their portfolios with retail acquisitions, possibly at a discount.”
Steeb
also says flexibility is vital to retail lending, which is causing the type of
lender providing the most agreeable terms to shift.
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| Christopher Drew |
“Even
though we are working with all types of lenders, insurance companies and local
and regional banks are paving the way toward getting retail deals done in
2020,” Steeb explained.
“They
have flexibility, tend not to have significant exposure in any particular asset
class and are able to arbitrage the market so when competitors pull out, they
can jump in and gain extra yield for their portfolio.”
Steeb
points out that JLL is seeing other lenders, such as bridge lenders, debt funds
and CMBS, underwriting well-located retail assets with strong sponsorship and
existing supportable cash flow to determine if they can sell their loan
committees and/or rating agencies on the retail loan opportunities.
For
more news, videos and research resources on JLL, please visit the firm’s U.S.
media center Web page: U.S. newsroom.
CONTACT:
Kimberly Steele,
JLL
Senior Associate
Public Relations
Phone: +1
713 852 3420
Email: Kimberly.Steele@am.jll.com
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