News

A debt fund managed by Ares Real Estate Group has provided $41 million to Mountain Capital Partners to refinance a recently completed multifamily property in a western suburb of Minneapolis, sources told Commercial Observer.

The bridge loan took out previous construction financing on the development and will help facilitate the lease up and stabilization of the asset, which is called Central Park West,

Looking back to examine some of the issues that helped shape the real estate landscape last year, provides us the opportunity to look ahead at how those trends might affect the industry in 2019.

Most evident in 2018 was the added liquidity brought about by the phenomenal growth of debt funds.

The record amount of capital raised by these funds continues to increase at a seemingly historic pace as institutional investors see debt as an opportunity to achieve attractive net returns with far less risk than equity investment,

A 113-bed assisted living and memory care facility in Glendale has received $59.4 million in debt and equity financing, banking firm Dekel Capital announced Jan. 29.

The facility, Sage Glendale Senior Living, is being developed by Willis Development. When completed, it will have 81 assisted living units, 24 private memory care units and four semi-private memory care units.

East West Bank gave a $38.7 million construction loan.

A Texas-based industrial real estate developer got a $34.3 million construction loan to finance a speculative logistics facility in Lakeland.

Xebec of Dallas plans to build a 537,000-square-foot logistics facility on a 60-acre site along Interstate 4.

Scheduled for completion in the fourth quarter of 2019, the logistics facility will have 36-foot clear height, 185-foot truck courts, 426 parking spaces for cars and 107 for containers.

New lenders are continuing to enter the market, especially in the bridge lending space, and the competition will mean good things for borrowers in the fourth quarter and beyond.

The fourth quarter will be a borrowers market, thanks to a growing increase of new lending sources. This year, new lenders have routinely entered the market, particularly in the bridge lending space. As a result, lenders are loosening underwriting standards and reducing spreads in order to meet production goals,

As we head into the 4th quarter of 2018 we are continuing to see the liquidity in the capital markets grow and reach a point of saturation where lenders are loosening their underwriting standards and reducing their spreads in order to remain competitive and meet production goals.

In the bridge lending space, the number of lenders continues to grow. In recent weeks we met with three new lenders that recently entered the debt fund space (we have lost track of the number of debt funds in the bridge lending space).