 |
Commercial Real Estate Industry - Is the Condo Craze Over, or Just Gaining Steam
Over the last two years there has been so much condo activity that many
commercial real estate lenders are starting to express concern over the future stability of condo markets. Some lenders have recently found themselves over allocated in condominiums as a result of the recent activity and have therefore become wary of all but the best opportunities. While the best opportunities (typically in Florida, Southern California and select
destination markets) are still attractive, developers in smaller markets are finding
condos much more difficult to finance in recent months. The reality is that many of the lenders expressing concern over the current state of
affairs in the condo market are the lenders that have been the least active and have
less knowledge about the asset class. Lenders familiar with the condo market are
not as concerned about the opinions of their peers, but rather with the
fundamentals of the projects and sponsors they underwrite. Projects that demonstrate that they underwrite according to the following guidelines
should be able to find financing even with the caution currently being expressed by
some in the lending community:
Sponsor Suitability: Sponsors that have a successful trackrecord of
developing other condo projects will be looked upon more favorably than those who
are building their first project. Having net worth and liquidity in reasonable
proportion to the project size always helps as well.Capital Structure: Projects that have a sufficient sponsor equity
contribution will receive more interest
than those projects looking to move aggressively up the leverage curve.Entitlements: Projects that are fully entitled and permit ready will
attract more interest than early stage projects.Market Feasability: How many units are you building vs. how many
competitive units are currently available for sale. How many competitive units are
coming online during the time period that your project is being built and how many
units does the market absorp each year? What are your per square foot sales prices,
how do they compare to the market, and is your location, construction quality and
ammenity package in line with that of comparably priced projects?Marketing: Who is going to sell your units and do they have a strong
track record of selling condos within the market you are building in?Presales: What type of presales have you been able to generate? The
higher the percentage of presales, the more are lender interest you will attract.
The bottom line is that good projects from good sponsors will always receive
interest from the capital markets. Mike Myatt is Executive Managing Director of Pacific Security Capital, a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance, investment sales and advisory services. Contact Pacific Security Capital at 1-800-844-6085 or by visiting the company website at http://www.PacificSecurityCapital.com
|
 |
Three Las Vegas Luxury Golf Courses Choose OpenDNS to Keep Their DNS Service on Par
Walters Golf Courses use OpenDNS to improve the Internet experience for their 500 employees
The Las Vegas Paiute Golf Resort Holds Amateur Golf Classic
Golf Tournament for Men, Senior Men and Women to be Held Labor Day Weekend
New Female Caddy Service Available at Royal Links Golf Club in Las Vegas
Introducing the all new Par Mates female caddy service at the Royal Links Golf Club in the city that never sleeps, Las Vegas. Now golfers can have a beautiful knowledge female caddy accompany them during their round of golf at one of Las Vegas' most unique golf courses, the Royal Links Golf Club.
Golf Fitness Vacation Combines Top-Rated Golf Instruction with Resort Getaway
Florida's LaPlaya Beach and Golf Resort and golf fitness company Body Balance for Performance team up to offer golfers leisure time and tee time.
Fairway Living Magazine Announces Golf Course Communities, and Golf Real Estate
Enjoy a complimentary 1 year subscription to Fairway Living Magazine while supplies last, all at absolutely no cost to you. Golf retirement homes, luxury golf communities and much more.
Coming to Las Vegas – the Las Vegas Real Estate Boom
Nobody seems to be 'Leaving Las Vegas' anymore – in fact just the opposite is true. Just as in the time of the rush Las Vegas real estate has been drawing the attention of investors and new citizens alike.
Online Real Estate Bidding Site Launched at National Association of REALTORS® Conference in Las Vegas
bidhive.com is a new property bidding site catering to industry professionals looking to market and drive real estate sales through competitive bidding. bidhive.com launched this week at the National Association of REALTORS® conference in Las Vegas. bidhive.com is free for professionals to use.
Las Vegas Golf Adventures Expands Online Services
Las Vegas Golf Adventures Expands Online Services to include the addition of Anthem Country Club, to their golf course offerings, a new multi-course booking system and more information on Las Vegas to assist with booking golf trips to Las Vegas.
Arizona Golf Carts - How to Find the Best Carts Arizona Has to Offer
Finding Arizona golf carts really isnýt hard today In fact, all you really have to do is go to Craigslist, eBay, or look in your local classifieds, and you will find many for sale in the state
Ultimate, Unlimited Golf Experience on Florida's "Golf" Coast at Marco Island Marriott Beach Resort
Marco Island Marriott Beach Resort has developed two Ultimate Golf Packages for the ultimate Naples golf vacation.
|
