News

In 2015, we saw a continued low interest rate environment, the implementation of Basel III regulations and a multitude of new entrants to the market in all areas of the capital stack. Looking ahead at 2016, we will see additional constraints put into place on capital flows. These increased regulatory stipulations and constraints on capital will effect leverage and pricing for commercial real estate and have borrowers seeking non-regulated sources of capital to fill the gap.

With holiday decorations popping up around town, we are reminded that year-end is just around the corner. While many traditional lending sources – banks, life companies and agencies – have their hands full, active private money lenders are well-capitalized and can fund your year-end acquisition opportunities. These lenders are hungry to meet their own lending goals and have quick-close capabilities to fund deals in as little as two weeks. Dekel Capital has identified a high leverage balance sheet lender that can execute your next financing by year-end.

Fed Delays Rate Increase Bringing Continued Stability and Low Rates To CRE
For the past several months, the commercial real estate industry has been awaiting the decision that would impact not only its bottom line, but also its momentum towards a stronger recovery. While labor markets have strengthened, downward pricing pressure from the decline in oil and commodities has kept inflation below the Federal Reserve’s target. In fact, the Fed took the path of least resistance and voted to keep interest rates at 0.25 percent as inflation remains below the two percent mark.

The beginning of 2015 has been eventful for the real estate capital markets. While the jury is still out on what comes next, here are the top five indicators of what’s been and what’s coming:

GE Capital exits the lending business
In April of this year, GE exited the banking business by spinning off GE Capital, the higher risk $500 billion finance business that was 42 percent of company profit last year.

We had a great time at the Bisnow Los Angeles Capital Markets Summit and enjoyed the Bridge & Mezz update moderated by our very own, Shlomi Ronen.

Pictured above from left to right:

Shlomi Ronen, Managing Principal |Dekel Capital

Larry Grantham, MD | Calmwater Capital

Scott Shepherd EVP |OneWest Bank

Jeff Friedman Co-CEO |Mesa West Capital

In January 2014 Dekel Capital launched Dekel Strategic Investors (DSI), a JV-equity platform to provide equity capital to real estate developers engaging in multifamily, senior housing, student housing, and retail development projects.  Over the past 18 months, the DSI has invested over $65 million across nine projects throughout the United States.  DSI will continue to fill the recognized gap in the capital markets for equity investment between $3 and $10 million and is targeting a total of $100 million of JV-equity investment by year end.