CRE- Finance has helped commercial real estate clients for over 10 years. Our top priority is helping our clients meet their financial goals.
Market - We had a great end of year and are having a good start to 2014. Interest rates have come down about 25 basis points from their highs in early September, and the current 10 year swap is 3.00%. The better news is that spreads have also tightened, and we are now routinely closing loans with all-in 10 years rates back below 5% for traditional asset classes.
Program - CRE-Finance continues to aggressively originate fixed-rate, non-recourse loans intended for securitization, and provides "one-stop-shopping" for Borrower's in need of higher leveraged transactions that require mezzanine funds. In addition, our bridge loan product is available for transitional assets that are not readily financeable with local banks.
Fixed Rate Loans - CRE-Finance does not have a favorite market or product type. Yes to limited service hotels (we have done a lot); yes to self-storage; and of course yes to office, multi-family, and retail (including unanchored). Guidelines for first mortgages are 75% LTV, 1.25x DSCR, and debt yields of 7.5% - 8.0% on multi-family, 8.0% - 9.0% on office and retail, and 10.5% - 11.0% for hotel/limited service hotel.
Floating Rate Loans - CRE-Finance has a very flexible floating rate loan program. CRE Finance has had success in transitional properties where we need to incorporate future funding for tenant improvements/leasing or capex costs. Terms are generally 1-3 years with rates beginning at 5.00%. CRE-Finance can be completely flexible and develop tailor-made solutions to meet the client's needs.
Mezzanine - Since CRE-Finance writes mezzanine loans as well as full leverage first mortgages, we can fill any holes in refinancing legacy assets that normally require fresh equity or new investors to capitalize. Generally, we will charge mezzanine rates of 10.0%-14.0% from 75% to 85% LTV, but can go higher if needed (we will most likely require an equity kicker above 85%).CRE-Finance provides the full capital stack at closing and will cut off a mezzanine post-closing if needed. The smallest mezzanine that we recently provided was $250,000 dollars and the largest was $15 million. We will not provide a mezzanine loan without also providing the senior mortgage, in most cases.
Equity - CRE-Finance has an appetite for joint venture equity for acquisitions. We recently closed a 90/10 acquisitions of office buildings in the Midwest with a total capitalization of $23 million where we provided the first mortgage and the majority of the equity. The most important criteria for our equity program is having an experienced local operator. Our fastest purchase this year was 23 days from term sheet to acquisition.
Recent Closing - CRE-Finance provided a $1,450,000 first mortgage loan secured by an Office building (built in 2005). Loan proceeds were used to refinance the prior debt. The last dollar LTV was 68.5% with a closing underwritten DSCR of 1.11x. The loans were structured with 10 year terms and 25 year amortization schedules. Any further questions, please feel free to contact CRE-Finance at 855-515-5585 or visit our website at www.cre-finance.com.