There are approximately 100 commercial banks lending in Florida that provide fixed and variable rate loan programs in the southeast U.S. Commercial banks are more traditionally known for shorter term financing of five years or less, providing both variable and fixed rate lending for construction and unstabilized properties. More recently, a growing number of the larger regional and nationwide banks are able to offer fixed rate loans of 7-10 years through 3rd party affilations known as “swap-desks”. Both pricing and risk exposure (LTV) can vary greatly depending on the risk profile of “both” the sponsor as well as the property. Banks are typically more focused on underwriting the sponsor more than the real estate collateral. Significant federal bank regulations have targeted commercial banks recently, reducing their tolerance for risk in commercial lending. These lender programs are typically full-recourse above 60% LTV.
This lender group consist of approximately 30-40 companies that originate first mortgage loans on a nationwide basis which are pooled together shortly after closing and collateralized as a Commercial Mortgage Back Security (CMBS). This lender group provides 7 and 10 year fixed rate mortgages, targeting mostly Tier 2 & Tier 3 (secondary and tertiary) U.S.…Read more
There are approximately 50 life companies providing first mortgage debt financing throughout the U.S. As a general statement, these lenders target mostly Tier 1 (major) markets and provide the lowest most competitive programs available. The debt products are underwritten on a conservative basis (max LTV 65%, little to no speculative rent roll risk, mostly Class…Read more
These lenders typically provide short term lending on un-stabilized commercial real estate properties at floating and fixed interest rates of 5% and higher, depending on the properties risk profile. Once the property is stabilized, they are expected to qualify for one of the above 3 lending programs. Unlike the commercial banks, this growing sector of…Read more