Commercial Mortgage Originations Jump in Q2 but Remain Depressed Year Over Year

Lo and Behold commercial and multi-family mortgage loan originations jumped by 50% in Q2 ‘09 as-compared to Q1. But, alas, they are still 53% below what they were in Q2 ’08.

 We are up from down yet still down. This according to a survey conducted by the Mortgage Bankers Association.

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Commercial property owners and investors can apply for a commercial mortgage loan online at the user-friendly website of MasterPlan Capital LLC. Our simple, 1 page commercial mortgage application is quick and easy to complete and we will respond in 1 business day.

Commercial Real Estate Market Shows Signs of Improvement

…The last couple of weeks have seen a slight improvement in transactions, according to Allen Smith, chief executive of Prudential Real Estate Investors.

‘Credible players are appearing and bidding on assets. We’d seen that earlier, but the people who were showing up to bid frankly weren’t terribly credible and often were really not prepared to close. We are now seeing people show up who fall into the institutional category and are clearly ready to close. We’re more prepared to act on that as a seller than we might have been in the past,’ he told the Reuters Global Real Estate Summit in New York…

CLICK HERE TO READ THIS ARTICLE AT PROPERTYWIRE.COM

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MasterPlan Capital LLC is actively seeking to underwrite and fund commercial mortgage loans from $1mm and up on all types of commercial real estate. Private and institutional funding is available for the purchase and refinance of income producing property.

Click here to apply: COMMERCIAL MORTGAGE APPLICATION  Our simple, 1 page request form takes only a moment to complete and you will receive an answer the very next business day.

Commercial Mortgage Lending – Government Help? Thanks but No-Thanks

Investors Shun Federal Rescue Programs

In a sign of just how bad the commercial real estate market is, South Florida property owners and investors are all but ignoring new federal rescue programs that they say are confusing and beyond their reach. Some are calling instead for the government to scrap the programs and let the marketplace hit bottom. That way, they say, the recovery can really begin.

Even though some industry groups have touted the federal programs as a boon to commercial real estate, local and regional developers and investors figure they will get little help from the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF) and Public-Private Investment Program (PPIP). Instead, they’re forming their own funds to acquire properties or distressed loans, seeking refinancing on mortgages and loan extensions.

READ THE REST AT GLOBESTREET.COM

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Commercial Mortgage Loans – MasterPlan Capital LLC

Commercial Mortgage Lending – Green Projects Get Funded

Like it or not, environmentally conscious, or “green” principles have come to dominate the field of commercial real estate development and commercial mortgage lending. Green building and sustainable design are now the standard in new commercial construction and residential developments. And, with local and national governments getting greener all the time, look for energy and resource efficiency to become mandatory, with green mandates being placed directly into building codes. Funding sources such-as banks, Wall Street brokers, insurance companies and hedge funds, are following suite and these principles are rapidly becoming a part of the commercial mortgage industry.

The US Department of Energy’s Center for Sustainable Development recently reported that 40% of the entire world’s energy supply is used by buildings. That’s a huge number. And, in the United States, construction accounts for our largest manufacturing sector, representing a staggering 13% of US GDP and nearly 50% of total wealth creation. Even tiny percentage gains in efficiency can amount to massive over-all energy savings.

Both institutional and private lenders as well as the REIT, (Real Estate Investment Trust) hedge fund and private equity industries have all embraced the environmental building movement. Green is the color of money and green is the color of commercial mortgage construction lending now and into the future. Lenders love green construction because good for profits as-well-as being good for the planet. Energy costs money, resources cost money and cleaning up messes’ costs money. Saving energy, saving resources and sustaining a site all save money, during construction and throughout the operational life of the property. Lenders know that green means efficient and, when they evaluate a project for financing they want to be assured that the funds they invest will be used cost-effectively and that the building will be economically viable.

Environmentally sound buildings can cost substantially less to operate than comparable buildings that disregard such efficiencies and tenants and their clients report higher customer satisfaction rates when doing business in them. To a lender, whose capital is secured by the building, this translates into higher quality collateral and makes their investments more secure.

As a commercial real estate investment banking professional, I can attest to the fact that developers who choose designs that are not green will find it very difficult to raise capital or secure loan approvals for their projects. We are in the midst of a sever liquidity crisis; construction money is in short supply. Lenders are giving priority to green development leaving very little capital available for conventional construction.

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The Federal Government’s LEED (Leadership in Energy & Environmental Design) rating system awards silver, gold and platinum certification to buildings that reduce waste and save energy and lower costs. LEED certification is almost (although not officially) a mandatory requirement in-order-to get a big construction project funded today. 

Being green is no longer just the passion of the activist anymore; it is the new emerging standard in commercial construction as-well-as commercial real estate finance. Investors and developers who need commercial mortgages will do well to pay attention to this trend

Real Estate Leads Sansex Higher

Some experts have predicted that India will help lead the world out of this global recession. To day the Sansex exchange seems to agree. Real estate is leading that market higher today.

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CLICK THE LINK TO APPLY FOR FINANCING: Commercial Mortgage Loans – MasterPlan Capital

Commercial Mortgage Loans – What Rates Do Hedge Funds Charge For Commercial Mortgages?

The ongoing credit crisis has made it much more difficult for investors to qualify for an institutionally funded (bank, broker, insurance company) commercial mortgage loan. Underwriting standards have become significantly tougher and loan parameters have tightened. Very few deals are being accepted by the banks, and even fewer are actually closing. Many good loans that should receive financing are being rejected out-of-hand. We call this situation the “funding gap.” Recently many hedge funds and private equity companies have recognized that opportunity exists for firms that can help fill the funding gap by offering private commercial mortgages to quality borrowers who have been shut out by their banks. Over the last 18 months money managers have committed hundreds of millions of dollars to the commercial real estate finance sector. They are buying distressed mortgage paper directly from troubled lenders and they are very willing to write new loans against commercial buildings and development projects. But before commercial real estate investors seek a loan from a hedge fund or other private lender there are some important things they should know. Private commercial mortgage lenders are opportunistic investors; a hedge fund is in business to earn high returns for its investors in a timely and efficient manner. The loans they offer will be short term in nature (rarely more than 36 months) and will carry significantly higher interest rates and origination points than a bank or Wall Street broker would. Further, hedge funds will be very aggressive in foreclosure situations; they will take your property if you fail to perform. Funds and private lenders that we work with are currently charging 10%-15% annual interest with 3-4 points. This means that borrowers can expect to pay a 13%-19% APR. On top of that, borrowers are responsible for the cost of any third party reports that may be required such as appraisals, environmental assessments and feasibility reports. On the positive side, there is capital available for these private commercial mortgage loans and deals can be closed very quickly. Most funds prefer income producing, investor owned commercial buildings like apartment complexes, office buildings or self storage facilities. They will generally lend up-to 65% of a properties value and underwriting is equity based not credit driven. They will lend for both purchase and refinance, but private loans are “bridge” loans and a viable, realistic exit strategy needs to be in-place. In-other-words they will need to know exactly how they are going to be paid back. This credit squeeze has been devastating to the commercial real estate industry and the problems are not going away. As we all wait for the situation to improve private lenders, including Wall Street hedge funds and private equity firms, have cash and are willing to lend it.

MasterPlan Capital LLC – Commercial Mortgage Loans – Privately Funded – Equity Financing – Asset Management – Simple, 1 Page Commercial Mortgage Application Online – Quick Answers – Quick Close- The author, Vincent Remealto, is a commercial real estate valuation and underwriting analyst for MasterPlan Capital.

Article Source: http://EzineArticles.com/?expert=Vincent_Remealto
http://EzineArticles.com/?Commercial-Mortgage-Loans—What-Rates-Do-Hedge-Funds-Charge-For-Commercial-Mortgages?&id=2489357

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CLICK HERE TO APPLY FOR A COMMERCIAL MORTGAGE LOAN – MasterPlan Capital LLC

Maguire defaults on Quintana Mortgage; A Forced Sale Likely

We all know the FDIC took-over Washington Mutual. What you may not know is that the FDIC relinquished almost all the leases WAMU had with landlords and commercial real estate owners across the country.

WAMU had leased an entire office building In an Irvine CA office complex known as Quintana, now the place is practically empty and Quintana’s owner is not collecting any rent from the defunked bank.

Quintana; Soon to be Auctioned

The complex in question was owned and managed by a group that includes Maguire Properties, based out-of Los Angeles and Macquarie Office Trust of Sydney.

 Predictably, Maguire/Macquarie have missed their June (’09) mortgage payment and have stated that they “are not willing” to inject anymore equity (read cash) into the building.

 They are said to be discussing options with the special servicer of the mortgage.

The only real option is a sale. It’s “worth” $106mm, I’ll bet an auction could fetch $75m.

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Commercial Mortgage Loans, Equity Financing, Asset Management; Visit MasterPlan Capital Online and apply for financing.

Commercial Real Estate: Billionaire Real Estate Investor Sam Zell Claims Talk of CRE Collapse Overblown. Watch the Interview Here.

Sam Zell made himself a billionaire by investing in real estate and he thinks all the talk of a meltdown in commercial real estate is a bit overblown. Watch below as Betty Liu of Bloomberg interviews Mr. Zell. His insights are welcomed and valuable.

Click here to view the video.
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MasterPlan Capital LLC; Commercial Mortgage Lending – Private and Institutional Funding

CLICK HERE TO APPLY FOR A COMMERCIAL MORTGAGE ONLINE – EZ APP – QUICK RESPONSE

When is a Tax Credit a Bad Idea?

We here at MasterPlan Capital generally love tax cuts, tax breaks and tax credits of all sorts, but we are Leary of the government’s proposal to offer a $15,000.00 tax credit to all home buyers.  

First of all it’s a big break to homebuyers at the expense of everyone else. Why should renters and other tax paying citizens who happen to be out of the residential real estate market subsidize other people’s American dream? Why should you or I be forced to help a stranger pay for his house?

Redistribution schemes don’t work because although Paul gets paid, Peter gets robbed. The result is, at best, a wash to the overall economy.

 Secondly, it’s artificial manipulation of the market. The housing market needs to find its true bottom; meaningful recovery can not happen until it does. Paying people $15k to buy houses will certainly increase demand, but the market will respond to that demand with price increases until it equalizes. The equilibrium, however, will be false and the market will be subject to devaluation when the tax credit is taken away.    

It is not the mandate of the US Government to favor one class of people (homebuyers) over another class (renters, single people, retired people, students) and government intervention always has unintended consequences; bad ones.

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MasterPlan Capital; Commercial Mortgage Loans

Commercial Mortgage Originations Down 70%

The Mortgage Bankers Association just released results of its quarterly commercial mortgage origination survey.

 Here are the depressing take-aways:

• Originations down 26% quarter over quarter and down 70% year over year
• CMBS conduit volume down 96% year over year.
• GSE (government sponsored entities) down 17% for the quarter.
• Life insurance companies origination down 7%

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MasterPlan Capital; Commercial Real Estate Investment Banking