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Less Choking Ahead

Orange County
Less Choking Ahead
If financing is the oxygen of CRE, there’s been a lot of gasping in the industry, except for the charmed multifamily segment. However, the financing climate for other kinds of deals might finally be improving—though not without headwinds.
Croxton, Reed
Beech Capital SVPs Kristen Croxton and Greg Reed, in the Newport Beach office, expect the financing climate for commercial properties to make incremental progress in the short- to mid-term. Financing for multifamily properties will remain competitive, of course, resulting in a lower cost of capital and more aggressive loan structures. Recently the duo participated in the $10.2M Fannie Mae DUS refi of a property portfolio close to home, 182 apartment units in three properties in Orange County.
For Rent
As for other property types, Kristen tells us that “debt capital has been a slower thaw coming out of the recession, but the fundamentals continue to improve modestly in many markets across the US.” Banks and life companies continue to increase allocations to CRE, and the CMBS market is—finally—showing signs of stabilization. “We anticipate liquidity to improve modestly for CRE financing over the next 12 to 24 months as debt capital sources continue to re-enter the market for CRE financing,” notes Greg.
Related Topics: Fannie Mae DUS, Greg Reed