State of the Market: March 2022 -Terrydale Capital
Terrydale Capital is actively providing capital solutions to our clients. We are in constant discussions with our capital market resources and are always identifying new resources that have become more active in this new environment.
A quick snapshot of what we are seeing:
Private Money: Rate Range of 6.5%-10.00%
Still a healthy amount of funds available in the private money space. We are anticipating more opportunities in the market needing this type of execution as rates tick up.
Debt Funds & Bridge Lenders: Rate Range of 3.55% — 7.99%
Debt funds in many cases are still more competitive than conventional financing options on acquisition financing. These options are providing additional leverage above most institutional banks. Debt funds have more flexibility to increase rehab dollars as well especially on larger ($10MM++ loan) transactions.
CMBS: Rate Range of 3.00%-4.50%
CMBS is offering very competitive rates and very attractive fixed term options. This year CMBS will have a strong year given the rate volatility and investors seeking non-recourse, max leverage, and fixed rate options as they come out of their bridge loan acquisitions.
Commercial Banks: Rate Range of 2.85%-5.50%
Q1 of 2022 has been a strong quarter for originations on the commercial bank side. We are seeing still many investors choose commercial bank options over competitors due to loan term, pre-pay flexibility and low rate options.
Credit Unions: Rate Range of 2.95%-5.00%
CUs are continuing to get loans done in markets where many other conventional lenders have trouble. Our team is consistently closing loans with CU’s in many tertiary markets.
Fannie & Freddie: Rate Range of 2.16% — 4.25%
Agency financing continues to be very aggressive. Rates have been increasing sharply this year on these programs; however, Agency will also have another huge year with investors coming out of their bridge/debt fund loans to longer term fixed options.
FHA: Rate Range of 2.90% — 4.15%
FHA program are seeing a big increase in activity here at Terrydale. For development that can afford the timeline, this is the best execution for multi-family development.
Life Company: Rate Range of 2.00% and up
Actively lending on all asset classes. Call us to learn more.
Investors have many ways to structure a deal in todays market. Mezz and Equity structures allow our clients to seek larger opportunities with options to position their transaction with as little as 5% down for qualified experienced investors.
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