Middle Market Eager for Finance. Here's Why
As the prospect of an interest rate increase looms, real estate investors are getting off the fence to lock down financing, JCR Capital CEO Jay Rollins tells us.
That isn't the only factor contributing to a robust lending climate, especially for middle-market real estate deals, Jay adds. Another important driver is the “wall of maturities” of loans coming due over the next three years. "That's a result of the 10-year anniversary of the height of the credit market in 2005, '06 and '07," he explains. (Ten is traditionally the tin anniversary, but kudos for mixing it up.) Jay's snapped with his son Alex.
Jay says that Denver-based JCR, which specializes in middle-market real estate lending, has closed $127M in loans through a bridge loan program it started only 14 months ago. Jay anticipates demand will continue to be strong, with the middle market--$5M to $20M deals--particularly active. These deals are too small for the big institutional guys and too big for country club money, which leaves an open playing field for knowledgeable players, he says.
