Fourth Quarter Comeback
The VCU Real Estate Conference had a good group for a round table discussion including higher leverage debt, equity, life-insurance company and agency representation. A few interesting points were brought up by the group while answering questions about liquidity in the market. Liquidity has clearly returned to the prime markets and prime assets are trading. The point was made that in times of uncertainty, there is a premium paid for the main and main location (for certainty).
Commercial Real Estate: Houston, We Have Lift Off!
Richmond-based John B. Levy & Company, Inc. announced today the placement of $29,000,000 in long-term permanent financing on behalf of a Maryland-based real estate operating company that currently owns over 5.5 million square feet of office, medical office and retail space in the Washington, D.C./Baltimore areas. The five separate financings, totaling $29,000,000, were secured by three office buildings located in the Greater Washington, D.C. area. The properties were financed with permanent mortgages having a fixed-rate of 5.85% with a 7-year term and amortizing over 25 years.
Richmond Times Dispatch, 8-9-10:
The good news is that commercial real estate lenders are voraciously competing for loans.
The bad news is competition, like sales activity, is confined to about five cities in the country.
Perhaps the LeBron James in this commercial real estate all-star game is Washington.
As one lender put it, “the closer you are to the printing press, the better chance you’ll have of getting some business.”
Another lender unfortunately described just how exclusive the area is that is attracting capital: “We are focused on Washington,