Wondering how people are approaching CRE in the near term, say 6 to 12 months, in terms of transactions. Both from a sponsor and lender perspective.
What product type are you looking to buy, begin construction on, or lend on in the near term?
Seeing any challenges in finding debt at desired terms? Difficulties in finding construction financing?
At my lending institution we are taking it deal by deal, as our thinking is evolving given all of the unknowns. Looking more favorably towards multifamily, distribution, and maybe self storage. Office and retail are dead unless under very consrevative terms.
Hey HotelCREwiz, sorry about the delay, but are any of these useful:
If those topics were completely useless, don't blame me, blame my programmers...
bump.
Our banks (household names) have completely stopped lending on all retail, unfortunately for us. They are open to multifamily still. Our industrial assets are faring well. We plan to enter the senior housing space within the next 2 years. We may use HUD financing for that if regular lenders still won't give the spreads we want.
What spreads, floors are you looking for, HUD vs conventional. I've heard that Fannie/Freddie spreads for MF have widened, but not sure if that's accurate.
I've been told the typical Libor + 250 for new construction of SH is gone. Although I've been told HUD 232 would provide a fixed rate of around 3.50% for 40 years - do you have any more insight on this loan type?
If you don't mind, I'd greatly appreciate any underwriting info/proformas/operating statements you could provide on similar projects. We are just getting started and trying to do our homework.
I see a lot of opportunity in affordable housing. Issue with B/C class tenants are those tenants are mostly service workers who might get furloughed or let go, not being able to pay rent.
Your downside is capped with Section 8 rents, so HUD seems like an ideal situation. It's slow and bureaucratic, but at the end of the day, government paychecks.
IMO new construction is the best
I agree that new construction is attractive. The challenge is vetting it out is tougher in most markets.
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