Remington Does all in it’s power to secure Financing
I have observed that some clients get turned down for financing despite having very sound business plans. The reason that the requests are turned down often is as a result of a poorly prepared request. At remington we pride ourselves on creating financing requests that are presented in their most favorable light. Our industry experience has trained us to focus on the issues that our capital sources are most interested in.
There is a high rate of balloon risk maturities happening in the next few years. By 2013 the number of maturities will be more than ten times the number this year. With vacancies up, multifamily lenders particularly will be hit hard. Experts predict that this effect on the multifamily industry could last through the decade. Read More Here.
Wells Fargo & Co. and LNR Property confirm that they are each looking to sell some $1 billion of distressed commercial property loans and assets.
Read More Here.
Remington aims to combat this massive sell-off trend by offering Distressed Owner Recapitalization programs.
If you have a commercial project, I would like the opportunity to take a look at it.
Joel Nathanson
Senior Executive
1Q Multifamily Originations Increase Year Over Year
According to the Mortgage Banker’s Association, Multifamily originations in the first quarter rose 12 percent from a year earlier. Although Originations fell 26 percent from Q4 2009, many experts believe this is a firm indication of the direction of the commercial marketplace. Which is up. As banks become more comfortable with loaning funds, a commercial feeding frenzy will ensue. There will be a rush towards both conventional and alternative sources of capital, like Remington. Although the volume of loans remains low, as a commercial financing professional, I am confident that the commercial marketplace is headed in the right direction.
Retail Sales Are Up, And So Are Retail Leases
The American Economy is slowly turning around. As Consumers become more comfortable, they are spending more money at Malls and Shopping Centers. With Sales up, retail property owners have seen a burst in leasing activity. In anticipation of new leases, retail property owners are expanding a looking to purchase new properties.
See more here.
The Problem is, banks are still not loaning out assets for acquisitions and new construction. Remington Group works with over 500 capital sources on a daily basis. We have the necessary expertise to get your project financed.
So, if you have a project, I’d like the opportunity to take a look at it.
Joel Nathanson
480-570-0679
Remington has an excellent capital markets group
I have found that as important as our access to capital is to our success that our ability to properly structure the capital stack can be just as important in getting transactions funded. Our capital structuring group is second to none. People often ask me how do we manage to arrange financing when others have failed. My response is simple. Deals fail for three reasons. 1) the deal is just a bad deal. numbers don’t make sense. We can’t fix these deals 2)good deal but poorly presented. We can fix that. Our expert capital restructuring group can present the deal in a way that a capital source will be able to see the merits . 3)good deal but poor access to capital- we can fix that. Our capital markets group has access to over 500 sources.
Distressed Owner Recapitalization options
For Close to two years, commercial real estate lenders have put off dealing with distressed loans. Although retail sales are on the rise, the amount of distressed owners in retail properties continues to grow. Until now, banks have spent most of their time resolving residential and construction loans. This year, they are turning their attention towards retail and office loans. Since this time last year, the amount of retail properties on bank balance sheets has more than quadrupled. The number of distressed properties has more than tripled. This is where Remington’s recapitalization program comes in.
Remington Has Access to Equity Capital
The majority of institutional equity that has been raised over the last 3 years, was to purchase distressed notes. These distressed notes are made up of a combination of preforming and non-preforming assets. Unfortunately, for the large private equity funds the number distressed notes hitting the open market is minimal compared to their initial expectation. The major reason, banks have continued to “extend & pretend” the current notes as long as they are cash-flowing assets and can service the debt. For the properties that banks won’t negotiate on, the only option is to recapitalize or be forced in to foreclosure. Remington’s Distressed Property Recapitalization Program (DPR) is the best option for property owners that are in this situation. With this program, we can work with our over 500 capital relationship to bring all parts of the capital stack to the table and find a viable solution.
Remington’s Capital Markets Provides Access to Capital
In today’s challenging credit markets it’s important to have a strong capital markets division sourcing your capital. With both institutional and private investors still leary when deploying new money, its important to understand each investors specific investment strategy and guidelines. Here at Remington, our capital markets group works closely with over 500 capital sources up and down the capital stack. Having multiple capital sources available for any particular transaction is crucial because its not uncommon to have to present a deal to 15 or 20 capital sources before one ultimately says “yes”.
It’s no surprise the medical office sector will be the forth front for new construction projects that are obtaining financing. Both debt and equity players are lining up to capitalize on the increase in demand for this property type. It is predicted that an additional 32 million Americans will now be covered by the Affordable Care Act that that was passed in to law, and the current industry won’t be able to handle the influx of demand.