All,
Given the current market conditions, are banks grounded to a halt pushing money out the door? Prior to this pandemic, the economy was rather healthy. I am working on a deal that requires roughly $40M of speculative non-recourse construction debt. The equity is in place. Happy to discuss further if anyone has any recommendations given the current state of the economy.
Thanks in advance!
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Check with UC Funds. I know they are actively quoting and closing non-recourse construction loans right now.
@debt-guy thanks for your help! I'll reach out.
you know any who are small balance that structure?
Calling banks in your area and getting a direct response would be far more productive than posting on WSO.
CRE banks in my local area most likely won't have the appetite for this type of deal. I'm in the Northeast and this deal is taking place in the Southwest. Thanks for your input!
Where in the southwest?
What you do is call "local" banks in the southwest then
If you're in contract on the land i would ask the seller for an extension. You'll be able to find better debt terms in a month or two. Most lenders are on the sideline right now waiting for the dust to settle and it'll be hard to find terms that won't blow up your UW. If you absolutely need the debt now you should call a debt placement broker at JLL or CBRE to find you the best terms out there.
SBPref12 we currently have counsel reviewing the PSA. We asked the seller late Friday for an extension and still have yet to receive a response. I appreciate your detailed response and will talk to the local CBRE & JLL guys. +1 SB!
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