Tuesday, July 7, 2015

$5 Million+ Renovation Underway at Oldest Incubator in the UCF Business Incubation Program in Central FLorida Research Park


Carol Ann Dykes
ORLANDO, FL – Construction is underway on a $5 Million plus renovation project of the 50,000 square feet UCF Business Incubator in the Central Florida Research Park. 

Carol Ann Dykes, site manager for the Research Park incubator, said the facility, established in 1999, is getting a major upgrade and has undergone six months of a 13-month large-scale renovation project slated for completion in February of next year. 

“These facilities are some of the older buildings in Research Park and most of the life safety, telecommunications, electrical, lighting and HVAC systems are outdated.  

"In addition, the internal configuration of the buildings has not been well suited for use as an incubator and we now have the opportunity to fix that.” Dykes said.

The work also includes the build-out of five much needed chemical wet labs and additional work spaces for companies that need to set up assembly and/or workstations.

 “We are fortunate to have an amazing team from UCF Facilities as well as the general contractor Wharton Smith.  Everyone has gone above and beyond to make this project as smooth as possible for our clients who are occupying the facilities during the renovations.”

 Currently the Research Park incubator houses over 45 early stage and Soft Landing technology client companies. 

 For a complete copy of the company’s news release, please contact:

Larry Vershel or Beth Payan, Larry Vershel Communications Inc.
407- 644-4142   Lvershelco@aol.com


Capital Square Realty Advisors Acquires Three Grocery Anchored Shopping Centers in North Carolina and South Carolina

  
Louis Rogers
RICHMOND, VA (July 7, 2015) – Capital Square Realty Advisors, LLC announced today it has acquired three shopping centers anchored by Food Lion, a leading Southeastern and Mid-Atlantic supermarket retailer, in North Carolina and South Carolina.

 “Each of these retail centers is located in a growing market with a population that has strong recognition of the Food Lion brand,” said Louis Rogers, founder and chief executive officer of Capital Square Realty Advisors.

“The supermarket retailer leases the anchor space of each property through long-term, triple net leases. We are thrilled to add strong retail properties like these to our growing real estate portfolio.”

The portfolio, approximately 98 percent leased at the time of acquisition, includes:

·         West Point Village, a 48,246-square-foot shopping center located at 433 North Carolina Highway 49 South in Asheboro, N.C.;

·         College Lakes, a 43,041-square-foot shopping center located at 929 McArthur Road in Fayetteville, N.C.; and

·         Kris Krossing, a 49,800-square-foot shopping center located at 3320 4th Ave. in Conway, S.C.
.
Capital Square was represented in the acquisition by Tim Marshall of TM1031 Exchange Inc.

For a complete copy of the company’s news release, please contact:

   Julie Leber                                                                         
   Spotlight Marketing Communications                    
   949.427.5172, ext. 703                   

                                       

Monday, July 6, 2015

$19.6 Million Sale of Five Net-Leased Childcare Centers in Three States Brokered by Marcus & Millichap


KinderCare, Gambrills, MD

 
Tammy Saia
PHILADELPHIA, PA,  July 6, 2015 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of five net-leased childcare properties to five separate buyers.

 The aggregate sales price for the assets is $19,680,271.

           Four of the properties are KinderCare Learning Centers and one is a Knowledge Beginnings Child Development Center. The KinderCare Learning Centers are located in Florida, Illinois and Maryland. The Knowledge Beginnings asset is in Colorado.

            Dean Zang, first vice president investments, and Christopher Phillips, associate, both in Marcus & Millichap’s Washington, D.C. office, and Mark Taylor, first vice president investments in the firm’s Philadelphia office, represented the seller, a California-based real estate investment fund.

Zang, Phillips and Taylor, along with Tammy Saia, vice president investments in Marcus & Millichap’s Chicago Oak Brook office, and Steven Siegel and Michael Kook in the firm’s Manhattan office, procured the buyers.

Dean Zang
            Sharone Sabar, first vice president capital markets with Marcus & Millichap Capital Corp. in Encino, arranged financing for the purchase of the KinderCare in Orlando, Fla.

“In 2014, we represented the buyer in the acquisition of these assets as a portfolio purchase,” says Zang.

 “Upon completion of that transaction, the purchaser immediately engaged our services to resell the properties on a one-off basis. 

"We completed the assignment in less than 10 months and achieved a return that eclipsed our client’s best case pro forma scenario.”

            The properties are:

·         Knowledge Beginnings, 11,400 square feet, Denver, Colo.
·         KinderCare, 10,340 square feet, Orlando, Fla.
·         KinderCare, 10,340 square feet, Wesley Chapel, Fla.
·         KinderCare, 9,600 square feet, Huntley, Ill.
·         KinderCare, 9,728 square feet, Gambrills, Md.


Stephen Siegel

“This is yet another example of how the Marcus & Millichap national platform is superbly positioned to maximize exposure and pricing to clients with geographically dispersed properties,” adds Phillips.

            Marcus & Millichap’s broker of record in Colorado is vice president Richard Bird, the firm’s broker of record in Florida is first vice president Kirk Felici, and in Illinois the company’s broker of record is first vice president John Przybyla. First vice president Bryn Merrey is Marcus & Millichap’s broker of record in Maryland.

     
 For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager

(925) 953-1716

HFF closes sale of fully-leased industrial facility in Houston, TX on behalf of Mayfield Properties, LP


8451 Market Street, Houston, TX
HOUSTON, TX, July 6, 2015 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of 8451 Market Street, a 120,810-square-foot industrial facility in Houston, Texas.

HFF marketed the asset on behalf of the seller, Mayfield Properties, LP.  ATCAP Partners purchased the asset for an undisclosed amount all cash and was assisted by HFF in arranging acquisition financing.  

HFF was also involved in the prior sale of the property to Mayfield in 2010.

 8451 Market Street is situated on five acres near the intersection of Interstate 10 East and Loop 610 adjacent to the Budwieser (Div Enbev) beer plant and the Houston Ship Channel, six miles east of Houston’s central business district. 

Rusty Tamlyn
The property features 24’ ceiling heights and a 7.8 percent office build-out.  Tenants at the fully-leased facility include Santini Export Packaging Corporation, who has been in continuous occupancy since the early 1980’s, as well as Area Wholesale Tire and Interglobal Plastics. 

 The HFF investment sales team representing the seller was led by senior managing director Rusty Tamlyn, director Trent Agnew and real estate analyst John Rogers.

HFF’s debt placement team was led by senior managing director Brian Carlton. 

 For a complete copy of the company’s news release, please contact:

Kristen Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com


NAI Realvest negotiates Sale of Vacant Industrial Land near DeLand, FL Municipal Airport


 
Chris Butera
DeLand, FL --   NAI Realvest recently brokered the sale of 3.68 useable acres of industrial land on Yorktown Street near the municipal airport in DeLand. 

 Chris Butera, investment associate at NAI Realvest, brokered the transaction representing the seller, REO Funding Solutions of Atlanta.

 The local buyer is Perryman Farms, LLC, a tree farm and nursery business who paid $77,280 for the property.    Robert Greene of Greene Realty represented the buyer in the transaction.

For a complete copy of the company’s news release, please contact:



Beth Payan or Larry Vershel, Larry Vershel Communications 407-644-4142

Joint-Venture Partners Citivest and Angelo, Gordon & Co. Acquire Nine-Property Retail Portfolio in San Diego County, CA for $183.25 Million


Pacific Coast Plaza,  2110-2191 Vista Way, Oceanside, CA
SAN DIEGO, CA (July 6, 2015) – AGC SD Retail Holdings, LLC, a joint venture of Newport Beach-based  Citivest Commercial Investments, LLC and New York-based Angelo, Gordon & Company, has acquired a nine-property retail portfolio in San Diego for $183.25 million, according to Citivest President Larry Weese. 

At the time of sale, the more than 520,000 square-foot portfolio’s average occupancy rate was above 92 percent, 78 percent of which are credit, national or regional tenants.

“All nine of these retail properties are positioned in strong locations within their submarkets and feature historically high occupancy with either strong anchor tenants or shadow-anchors that drive consumer traffic to the centers,” Weese said.

Town Center North, 805 College Boulevard
 Oceanside, CA
“This portfolio will make a strong investment for our company and for our partner, as we will be able to increase the value of this already well-performing portfolio through our leasing and asset management expertise.”

The properties include retail space within Pacific Coast Plaza and Town Center North in Oceanside; Palm Promenade and Stonecrest Plaza in San Diego; East County Square and East County Village in El Cajon; and EastLake Terraces, Eastlake Village Center East and Southbay Marketplace in Chula Vista.

Dwight Belden, Chief Operating Officer for Citivest Commercial Investments, LLC, pointed out, “This is the first time any of these properties had come to market since they were built. Each of the acquired retail spaces is located within the dominant centers in their areas, with historically high consumer traffic. When these factors are coupled with the high barriers to entry in the San Diego market, the potential for growing asset value for these investments is quite strong.”


Larry Weese
Weese added that the properties will be further stabilized in the coming months, and that the partners will also reposition the largest of the acquired properties, Pacific Coast Plaza, through implementing exterior upgrades.

“Acquiring nine separate properties at one time took a lot of patience and dedication,” Weese noted. 

“By working closely with the seller, as well as our joint venture partner, we were able to overcome issues that arose, including the assumption of a CMBS loan, and complete this unique portfolio acquisition.”

            The Citivest team included Weese, COO Dwight Belden, CEO Dana Haynes and VP Jeff Peterson in association with Mark Ferraro of TMC America, LLC.

The new portfolio will be managed by Rob Cord - Managing Director of Real Estate Management Services at Voit Real Estate Services.

 Brokerage was handled by Flocke & Avoyer, San Diego.

For a complete copy of the company’s news release, please contact:

Corynne Randel / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

       

Sunday, July 5, 2015

Berger Commercial Realty Brokers Close Four Transactions in Broward County and Palm Beach Counties, FL


Annette Rey Bishop
FORT LAUDERDALE, Fla. (July 1, 2015) - Berger Commercial Realty brokers Annette Rey Bishop,  Judy Dolan, Keith Graves, Greg Milopoulos  and Jonathan Thiel recently closed four leases totaling more than 16,000 square-feet of space in Broward and Palm Beach counties.

Dolan and Milopoulos represented landlord GA 4711 N. Australian Avenue, LLC for the new lease of 1,532 square-feet of warehouse space in Mangonia Park to Safety 1st Playgrounds, Inc.

 The property, known as Mangonia Business Park, features tilt-wall construction, impact glass, large overhead grade-level doors, 18-foot ceilings, and ample parking.

 It is located at 4711 N. Australian Ave. just north of 45th St. and west of US 1.

Judy Dolan
Dolan also represented landlord 1936-1938 Hollywood, LLC for the new lease of 3,500 square-feet of office space to Evergreen Sweeteners. 

The class C office building was built in 1947 and is in the heart of Hollywood's Central Business District. The property is located at 1936 Hollywood Blvd., just west of Young Circle.

 Dolan, Graves and Thiel represented landlord CoFe Fund 1-Plantation, LLC for a new lease of 4,498 square-feet of office space to BrightStar Credit Union.

The suite is within Plantation Technology Park located at 1700 N.W. 66th Ave. in Plantation.

 The property includes a renovated lobby and common area, direct access to suites from the parking area, a campus-like setting and abundant parking.

Bishop and Dolan closed a renewal/expansion lease on behalf of landlord 2019-2030 Hollywood, LLC for 7,295 square-feet of retail space to Tardes Calenas Bar Restaurant. The property is located at 2025 A-B Hollywood Blvd. in Hollywood.

For a complete copy of the company’s news release, please contact:

Media Contact: 954-776-1999
Lexi Robinson, ext. 255, lrobinson@piersongrant.com

Marielle Sologuren, ext. 226, msologuren@piersongrant.com

Marcus & Millichap Arranges Sale of 3,565-SF Net-Leased Jiffy Lube Site in Sarasota, FL


James Medefind
SARASOTA, FL – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Jiffy Lube, a 3,565-square foot net-leased property located in Sarasota, Fla., according to Richard D. Matricaria, regional manager of the firm’s Tampa office. 

The asset sold for $1,050,000.

James Medefind, senior associate in Marcus & Millichap’s Tampa office along with Drew A. Kristol and Kirk D. Olson, both vice president investments in the firm’s Miami office, had the exclusive listing to market the property on behalf of the seller.

 The buyer, a private investor, was secured and represented by Mike Paspalakis, associate, Michael Donaldson, vice president investments, and Nicholas Meoli, associate vice president investment, all in the Tampa office. 

Jiffy Lube is located at 8624 South Tamiami Trail (U.S. Highway 41) in Sarasota, Florida. U.S. Highway 41 is the main north-south highway along the west coast of Florida. 

Drew A. Kristol
As a result, a substantial traffic count of over 45,000 cars per day pass in front of the subject property. The tenant recently opted to execute a new 10-year lease in lieu of an available five year option period, showing their commitment and success at this location.

“This transaction was a great example of Marcus & Millichap’s ability to access out of area buyers to maximize the net proceeds for our clients. 

"Through our collaborative platform we were able to source a buyer from New York looking to expand his portfolio in Florida. 

"We are seeing an increased flow of out of state buyers looking to take advantage of the attractive investment environment here in the Sunshine State,” says Medefind.


For a complete copy of the company’s news release, please contact:

Richard D. Matricaria
Vice President/Regional Manager
 Tampa, FL

(813) 387-4700

Saturday, July 4, 2015

The Taylor-McMinn Team of Marcus & Millichap Sells $10.35 Million Shopping Center in Atlanta, GA


Crossville Village Shopping Center,
Alpharetta Highway and Holcomb Bridge Road, Roswell, GA

 
Zach Taylor
ROSWELL, GA  – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announces the sale of Crossville Village, a 74,790-square-foot shopping center in the north Atlanta suburb of Roswell, Ga. The $10,350,000 sales price equates to $138 per square foot.

            Zach Taylor and Don McMinn, vice presidents investments in Marcus & Millichap’s Atlanta office and principals of the Taylor-McMinn Team, represented the seller and procured the buyer, a private investment group led by John Perlman of Adams & Co. Real Estate Inc. 

            “The center’s affluent demographics, high-traffic location, and attractive return drew a great deal of interest from both local and national investors,” says Taylor. 

“Pricing for grocery- anchored centers and single-tenant properties remains at all-time peak levels and as a result we are experiencing increased demand and significant cap rate compression for unanchored multi-tenant centers with national tenants like Crossville.”

Don McMinn
            The retail center is located at the busy Roswell intersection of Alpharetta Highway and Holcomb Bridge Road. Crossville Village was built in 1978 on 7.5-plus acres and remodeled in 2004. The buyer assumed existing CMBS financing. 

            The Taylor-McMinn Team is a nationally recognized, industry-leading retail investment sales team that specializes in the disposition of net-leased investment properties and shopping centers throughout the United States.

 For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager

(925) 953-1716

Marcus & Millichap Sells 342-Unit Wichita, KS Apartment Complex


The Shores Apartments, 2701 South Emporia Street, Wichita, KS

Brett Meinzer
WICHITA, KS – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has arranged the sale of The Shores Apartments, a 342-unit multifamily complex in Wichita, Kan.

The terms of the sale were not released.

            Brett Meinzer, associate, Michael Sullivan, senior associate, and Grant Kollman, associate, all in Marcus & Millichap’s Kansas City, Kan. office, along with Alex Blagojevich, vice president investments in the firm’s Tampa office, and David Gaines, vice president investments in the Chicago Downtown office, represented the seller, a private, Florida-based investor.

Alex Blagojevich
The buyer is Kirkland, Wash.-based Weidner Apartment Homes. Greg Bates, associate in the firm’s Kansas City, Kan. office, is Marcus & Millichap’s broker of record in Kansas.

“The transaction was completed all-cash and took less than 45 days to close,” says Meinzer. “After an extensive national marketing campaign to private investors, we received registration for information from over 100 buyers, garnered 11 initial offers and seven ‘best and final’ offers. 

"Based on the trailing 12 months’ net operating income, the sale closed at a 5.84 percent cap rate.”

The property is located at 2701 South Emporia St., approximately three miles south of Wichita’s central business district and near Interstate 235 and U.S. routes 81 and 400.

Built in 1985 on 10.5 acres, The Shores Apartments consists of 19 three-story buildings with 174 one-bedroom/one-bath units and 168 two-bedroom/two-bath units. 

Apartment amenities include spacious floor plans, private patios/balconies, and large, eat-in kitchens with vinyl flooring, dishwashers, disposals and ovens with ranges.

Select units include washers and dryers and fireplaces. Community amenities include a large pool, a clubhouse, a business center, a fitness center, a playground, a tennis court, on-site management and maintenance staff, dry cleaning services and laundry facilities

 For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager

(925) 953-1716

Manhattan Upper East Side Mixed-Use Asset Hits the Market at $45 Million

  
1313--1315 Third Avenue, Upper East Side, Manhattan, NY

John Stewart
NEW YORK, NY – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced it has the exclusive right to market for sale 1313-1315 Third Ave., a five-story, walk-up, mixed-use building on Manhattan’s Upper East Side. The listing price is $45 million.

            John Stewart and Michael Sadowsky in Marcus & Millichap’s Manhattan office are representing the seller.

            “In addition to the existing apartments and retail, the property has 34,960 square feet of development rights,” says Stewart. “The building is neither landmarked nor part of a historic district, and the retail tenant has a demolition clause in its lease.”

            The mixed-use investment real estate asset is located between 75th Street and 76th Street at 1313-1315 3rd Ave. with 56 feet of frontage on Third Avenue in New York City. The building contains 32 residential units and one commercial unit.

 There are 31 one-bedroom apartments and one studio. One unit is rent controlled and five are rent stabilized. The remaining apartments are market rate. The commercial tenant, Citarella, occupies approximately 5,250 square feet.

 For a complete copy of the company’s news release, please contact:

Gina Relva
Public Relations Manager

(925) 953-1716

Marcus & Millichap Arranges Sale of 115-Unit Apartment Portfolio in West Palm Beach, FL for $8.49 Million


Harrison Rein
WEST PALM BEACH, FL  – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of a portfolio of 12 apartment properties located in West Palm Beach and Coconut Creek Fla., according to Ryan Nee, regional manager of the firm’s Fort Lauderdale office.

The 115 unit-portfolio sold for $8,490,000.

Harrison Rein, an associate, and Robert S. Hunter, a senior associate, in Marcus & Millichap’s Fort Lauderdale office, represented the seller, a private investor from Chicago, IL and the buyer, a private investor from Miami Beach, Fla.

“The portfolio presented an opportunity for the buyer, who was in a 1031 exchange looking to expand on their South Florida holdings, to acquire a critical mass of units in close proximity to the Downtown West Palm Beach area,” says Rein.

The portfolio is comprised of nine buildings in West Palm Beach and three buildings in Coconut Creek.  The unit mix consists of six studios, 85 one-bedroom/one-bathroom units, six two-bedroom/one-bathroom units, 16 two-bedroom/two-bathroom units and two three-bedroom/one-bathroom units.

The properties are located at:

·         515 South Sequoia Drive, West Palm Beach, Fla
·         306 N Lakeside Court, West Palm Beach, Fla
·         314 N Lakeside Court, West Palm Beach, Fla
·         311 Pine Terrace, West Palm Beach, Fla
·         315 Pine Terrace, West Palm Beach, Fla
·         1305 Florida Avenue, West Palm Beach, Fla
·         1701 Georgia Avenue, West Palm Beach, Fla
·         1707 Georgia Avenue, West Palm Beach, Fla
·         2716 S. Dixie Highway, West Palm Beach, Fla
·         2724 S. Dixie Highway, West Palm Beach, Fla
·         460 Sunshine Drive, Coconut Creek, Fla
·         470 Sunshine Drive, Coconut Creek, Fla
·         471 Sunshine Drive, Coconut Creek, Fla

 For a complete copy of the company’s news release, please contact:

Ryan Nee
 Regional Manager
Fort Lauderdale, FL

(954) 245-3400

Gelt, Inc. Acquires 628-Unit Apartment Portfolio for $67.5 Million in Salt Lake City, UT Area


Keith Wasserman
Los Angeles, CA – Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, has acquired a 628-unit apartment property portfolio for $67.5 million.

The two-property portfolio is located within the greater Salt Lake City region and includes Miller Estates, a 294-unit property, and Layton Meadows, a 334-unit property.

 Both properties are located in dense, infill areas that are poised for population growth and as a result, increasing demand for rental housing over the next several years. 

Gelt plans to add value to the assets by conducting capital improvements to both the interior units and common areas, as well as implementing an enhanced management program through community building and excellent customer service.

 These strategies will enable the firm to achieve market rents and higher resident retention.
  
Layton Meadows




“We like the Salt Lake City market for investment because of its growing workforce, population, and economic health of the region and the state overall. 

"It will continue to be one of our targeted areas for investment, and we hope to build a portfolio of at least 3,000 units in the greater Salt Lake area over the next couple of years,” said Keith Wasserman, partner with Gelt, Inc.

 For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
949.278.6224

The Carlyle Group Acquires Lauderdale Marine Center, Nation's Largest Yacht Repair Facility


Thad Paul
FORT LAUDERDALE, FL - Global alternative asset manager The Carlyle Group (NASDAQ: CG) announced the acquisition of Lauderdale Marine Center (LMC), the nation's largest yacht repair facility in terms of the number of large vessels it can haul and service. Equity for the transaction comes from Carlyle Realty Partners VII, a U.S. real estate investment fund.

"In partnership with the outstanding management team and staff at LMC, we will build upon LMC's success through growth and continued innovation and superb customer service," said Thad Paul, Managing Director at The Carlyle Group.

 "Favorable demand trends in the mega-yacht industry and the high barriers to entry for new supply in Southeast Florida attracted us to the investment."

 Located in Fort Lauderdale on the New River, visible from I-95 and close to Fort Lauderdale/Hollywood International Airport, LMC is a 50-acre facility consisting of a boatyard, marina and marine service center.


 It accommodates boats up to 200 feet with 19 covered sheds and 156 wet slips, has three marine travel lifts with haul-out capacity up to 330 tons, and features 7,000 linear feet of dockage.

For a complete copy of the company’s news release, please contact:

Pierson Grant Public Relations
 (954) 776 - 1999
 Daniel Grant, ext. 235

Real Estate Capital Institute Finds Low Floating Rates Could Still Interest Investors


Jean Peck
Chicago, IL – Real Estate Capital Institute reports the Low-Rate streak may be coming to an end, but by waiting, borrowers are rewarded with low floating rates.

Interest rates steadily climbed since April, fluctuating about 20 basis points and ending at nearly the same levels as a month ago.  This time, the Greek financial crisis takes credit for rates steeply dropping by month's end.

With midyear funding goals and objectives on [or often ahead of] schedule, numerous balance sheet lenders, namely life insurance companies, are hitting their funding goals and objectives.  Many of them cite funding targets in excess of 10% or more.

 These lenders are expected to widen out their pricing as well as tighten underwriting standards, as a result. Since absolute mortgage rates are at already near historical lows, motivation to invest more capital in this sector is now more tempered.

The acquisition market is progressing at a healthy pace with pushes from 1031 exchange buyers and from buyers' growing perception that real estate is moving out of the "alternative asset class" definition.  The increase in rates may somewhat interfere with the downward trend in cap rates.

Greece
Balance sheet lenders are not alone, as mortgage conduits and debt funds expect to also hit post Great-Recession funding targets for the remainder of the year. While no shortage of capital exists, securitized lenders will also widen spreads in response to LifeCo rate increases. 

Borrowers will tolerate rate hikes of 10 to 50 basis points before starting to seriously reevaluating cost-of-capital issues as part of their investment strategies.

The end result?  Expect low mortgage rates for the remainder of the year, but at slightly higher spreads over treasuries.  Conservative, lower leverage loans in nearly all property sectors will enjoy the strongest funding demand, but secondary quality loans will still generate demand as long as cash flow prospects remain strong.

"What is certain is the insatiable appetite for higher-quality, cash flowing commercial real estate," suggests Jeanne Peck of the Real Estate Capital Institute(r).  

"Borrowers are spoiled with lower cost of capital, and owners/sellers with record high prices. Nothing on the horizon will change these conditions for the second half of 2015."

For a complete copy of the company’s news release, please contact:

Jeanne Peck, Executive Director