Commercial Mortgages | Commercial Hard Money Lenders

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• Commercial Hard Money Lenders

2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com
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Commercial Mortgages in the NY Real Estate
Market Status Update
Notwithstanding the severe job losses and
declining economy that resulted in form the
March stay-at-home orders across the nation,
actions by the federal government have supported
the continued operation of key capital
marketsalbeit with reduced deal volume as
compared to the opening months of 2020. This is
especially true in the New York commercial
mortgages sector, as data compiled by the
Mortgage Bankers Association indicates that in
August 2020 there was relatively little change in
overall commercial and multifamily real estate
delinquency rates and an overall decline in
borrower inquiries and requests. These are
positive market indicators that suggest the
industry is on the road to recovery.
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Capital markets have seen an uptick in activity
due to the low- interest rates and favourable
spreads, with lenders engaging with their asset
management clients and pursuing numerous new
originations. Collectively, the majority of asset
classes posted marked improvement as compared to
their subpar performance in April and May, where
the after-effects of the initial economic
shutdown were still fresh, and the industry was
struggling to adapt. While liquidity in the debt
markets was initially a concern in these early
stages, that issue has begun to subside thanks in
large part to an injection of capital from
federal entities in the form of stimulus
packages. Core properties with long median lease
terms are attracting the greatest amount of
private capital. Assets that were under contract
prior to the stay-at-home orders and economic
turbulence have, for the most part, continued to
close at their pre-COVID-19 listing prices,
although both deal volume and velocity have
declined as expected.
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Hotel and retail properties continue to exhibit
the greatest financial stress however, the
delinquency rate for lodging properties fell in
August for the second month in a row, while the
delinquency rate for retail properties spiked at
a new high since the onset of the pandemic. MBA
data indicated that the share of lodging
property loan balances that were non-current fell
to 23.4 in August (from 26.2 in July and 27.3
in June). For retail property loans,
delinquencies rose to 15.0 in August (from
13.9 in July and 14.7 in June).
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While the office commercial mortgages sector has
been less active than multifamily, many banks
continue to lend to office borrowers. Although
the recent transition to work-at-home positions
by the majority of companies might have
signalled trouble for this sector, office
tenants typically have long-term leases that
support underwriting. There is still some degree
of uncertainty regarding the post-pandemic
office market. Even though vacancies will
definitely increase in the next year, there is
not a widespread consensus amongst real estate
professionals as to whether there will be a
long-term drop in office occupancy. In the short
term, the demand for increased office space in
order to comply with social distancing protocol
in the workplace will likely offsetthe decline in
office space tenants due to the increased
adoption of remote working. a long-term
perspective, there is a consensus that companies
require the office to engender a shared culture,
in- person collaboration and efficiencywhich
would support that the office sector will
eventually recover to pre-COVID 19 volume.
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For promising projects that potential borrowers
can convincingly demonstrate to lenders will
produce a healthy return on investment, loan
servicing is readily accessible and interest
rates and spreads are ideally priced from an
investment perspective. Lenders continue to
actively lend on lower-risk assets, such as
industrial and multifamily projects. In these
sectors, borrowers can actually secure
historically low-interest rates. There continues
to be substantial capital for all other asset
classes, bringing increased competition between
lenders and unprecedent low rates for borrowers.
This is apparent in the performance of industrial
and development projects, which has remained
robust thanks to ample cash flows for
underwriting.
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Express Capital Financing is a direct nationwide
hard money loans lender of bridge/hard money
mortgage lending as well as small and large
balance commercial mortgages. At Express Capital
Financing, our hard money mortgage advisors
engage in a solutions-focused, consultative
approach. We understand each clients specific
needs and goals and present the best approach to
satisfy the real estate investors requirements.
Express Capital Financing possesses a unique
market knowledge that is critical in todays
complex and volatile environment. Express
Capital Financings integrity, relationships and
our determination are uniforms in every
transaction in which we participate.
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Thank You!!
2625 East 14 St. Suite 209 Brooklyn, NY, United
States 11235 info_at_expresscapitalfinancing.com
www.expresscapitalfinancing.com