ARCHIVE - Tag: Commercial Mortgages
Andy Little

RICHMOND TIMES-DISPATCH

by Andrew Little, Special Correspondent

Lead singer Dan Auerbach of rock band The Black Keys could have been singing about retailers and retail sales in the band’s new hit “Lo/Hi” as the roller coaster for merchants continues in 2019.

Overall sales in the retail and food services industries showed a solid increase of 3.1% in April compared with the same month a year ago, according to the most recent data from the U.S.


Andy Little

RICHMOND TIMES-DISPATCH

by Andrew Little, Special Correspondent

Lenders at the recent annual Mortgage Bankers Association meeting spoke very little about the economy and how we were getting late in the cycle. Caution had been a mainstay of the past three or four years.

But that was noticeably absent from most conversations. In fact, the overwhelming view was that when compared to other asset classes, commercial real estate and multifamily are undervalued and have a way to run.


Andy Little

RICHMOND TIMES-DISPATCH

by Andrew Little, Special Correspondent

Like the 1972 hit song by Paul and Linda McCartney and sung by Wings, most in commercial real estate spent last year worried about how rising interest rates were going to get “Hi, Hi, Hi.” Now, the fear of higher rates has been replaced with lingering anxiety that the current economic expansion can’t last forever.

Overall rates are up from last month and are currently in the 4.25 percent to 4.45 percent range for 5- and 10-year loans offered by life insurance companies,


Andy Little

RICHMOND TIMES-DISPATCH

by Andrew Little, Special Correspondent

Several recent big sales of apartment complexes in the Richmond region make it clear that, as the lyrics from the rock band Buffalo Springfield’s “For What It’s Worth” song indicate, “there’s something happening here, what it is ain’t exactly clear,”

The first was a Oct. 26 trade of the 192-unit Copper Mill Apartments in western Henrico County for $33 million. The 1987-era apartment complex was well-occupied at closing,


Andy Little

RICHMOND TIMES-DISPATCH

by Andrew Little, Special Correspondent

No one should be humming the lyrics to rock band My Morning Jacket’s 2008 song “I’m Amazed” as interest rates on commercial mortgages march higher.

Yet those in the midst of refinancing or closing a loan were rudely awakened to that fact earlier this month when data confirmed what we already know: The economy is picking up steam.

The unfortunate side effect to a stronger economy for real estate investors is that long-term interest rates move up.