MARKET INSIGHTS

Commercial real estate loans funded by life insurance companies are some of the most advantageous you can find for large commercial real estate investments, offering some of the lowest interest rates and best terms against comparable options.

Commercial real estate loans funded by life insurance companies are some of the most advantageous you can find for large commercial real estate investments, offering some of the lowest interest rates and best terms against comparable options.

While being a successful mortgage banker is about experience and the number of deals done, it’s also about the arrows in your quiver, according to PSRS Principal Kostas Kavayiotidis. Access to life insurance money is a distinct advantage in the PSRS quiver.

Negative headlines and store closures have scared some lenders away from the retail sector. Are the headlines a true reflection of opportunity in retail? PSRS believes there is still opportunity having completed $235,000,000 in loans on retail properties so far in 2017. However it’s important to work with a knowledgeable partner

Sometimes, our clients require financing that may be better suited for lenders outside of life companies. When this situation arises we will often turn to the Commercial Mortgage Backed Securities (CMBS) market to see what is available for our clients.

While self storage facilities may not have the sex appeal of other retail or office properties, they are still a solid investment representing more than 50,000 facilities in the US. These non-descript warehouses that hold the belongings that don’t fit anywhere else are worthwhile investment consideration.

PSRS closed an $11‐million‐dollar loan for Oak Hills Medical Plaza in West Hills, CA. Originally built in 1985, the 55,246-square-foot center is home to 21 medical-related tenants and is conveniently located adjacent to West Hills Hospital, providing a nice advantage for doctors who visit patients at the hospital. PSRS arranged a cash‐out refinance of an existing CMBS loan, on a 10‐year interest-only basis.

New stricter standards are being required by some lenders for the Probable Maximum Loss (PML) report. This report is a commonly-used tool by real estate investors, lenders and insurers to assess worst-case scenario of a building damage from a seismic event.

With the Federal Reserve approving the second 2017 increase of the Federal Funds rate today by .25% to 1.25% we are taking a closer look at how this will effect the economy and commercial real estate markets.

We sat down with a Senior Mortgage Loan Officer at Standard to see how they are responding to current market demand:

In decades of advising borrowers of all shapes and sizes, one topic that comes up repeatedly is the best practice for a borrower to terminate an interest rate swap when the underlying loan is paid off early.

PSRS IN THE PRESS