News

Dekel Capital was in attendance at the Western States CREF Conference in Las Vegas earlier this month, where we met with capital sources across the lending spectrum to get updated insights on lending programs and trends in today’s capital markets.

The current sentiment is that lenders have recovered from the general market turbulence that reverberated through the industry in the first quarter of the year. Both bridge lenders and fixed rate lenders are now providing fluid supply of debt to meet borrowers’ needs through the end of 2016,

Deal marks $100 million funded through Dekel Capital’s JV equity platform

LOS ANGELES/THOUSAND OAKS, Calif.—Sept. 22, 2016—Dekel Strategic Investors (DSI), a proprietary equity fund of Dekel Capital that provides equity capital to real estate developers engaging in multifamily and senior housing development projects, has placed $16.1 million in equity for the development of Sage Mountain Senior Living. The 130-unit, 58,154-square-foot assisted living and memory care facility will be located in Thousand Oaks, California.

Fed Update
The Federal Reserve announced on Wednesday it will not raise its benchmark interest rates and expects to raise rates more slowly in the coming years. The Fed has decided to stick with its cautious approach to adjusting monetary policy, as recent economic indicators have continued to be mixed. With only 38,000 jobs added in May, job growth has declined, yet economic growth has shown signs of improvement. As such, 15 of 17 policymakers project no more than two rate hikes this year,

Sandy Schmid has joined Dekel Capital as a Director where he is focused on new business relationships, investor relations, and raising equity and debt for investors and developers.

With over 10 years of real estate experience, Schmid’s background in development and finance brings a hands-on understanding of each client’s real estate assets and their unique capital needs. Prior to joining Dekel, he served in leadership positions at several firms within development and finance,

Since the beginning of 2016, our conversations with capital sources have made it abundantly clear that concerns over a tighter global financial outlook and the implementation of new regulations have caused a shift in lender sentiment. This comes at a time when the strong demand for new construction loans is consistent with 12 months ago, but the supply of capital is constrained as lenders react to allocation issues as well as the Basel III regulations.

The increased risk weight for banks as it relates to high volatility commercial real estate (HVCRE) went into effect at the beginning of this year. The result is that all acquisition, development and construction (ADC) CRE loans must be reported separately from other CRE loans and are to be assigned a risk weighting of 150% for risk-based capital purposes – above the typical requirement of 100%. This will have a significant impact on banks’ capital ratios and ability to lend at historic pricing levels.