Positive Big Picture
It is obvious that hotel operating performance will be much better in 2021 than 2020. It is, perhaps, less obvious that hotel lending has already begun staging a comeback that will accelerate throughout the year while continuing to stay ahead of actual hotel performance.
Hotel CMBS Lending Rebounds Prior to Hotel Performance
Borrowers and lenders both enjoyed a fruitful 2017 and US Hotel Advisors predicts that 2018 will be more of the same.
Looking Back at 2017
Coke or Pepsi? Stripes or Solids? Apple or Android? Ohhh, the agonizing decisions we humans are forced to make on a daily basis! What if I told you that choosing between a fixed-rate loan and a floating-rate loan could make or break an otherwise successful real estate investment? Given how often this topic arises and how long the deliberation can last, I will guess that most real estate professionals reading this article would agree with the above statement. Below is a primer on the differe
The commercial real estate lending markets started 2016 slow and choppy and spent the rest of the year making up lost ground. Volume was down, but available for good deals; rates and spreads were accommodative, even with the year-end Treasury rate spike; defaults rose slightly, but not alarmingly and banks and life insurance companies picked up market share at the expense of CMBS lenders. This year, the debt markets will face their own set of unique and unprecedented challenges, but
Navigating the CMBS market can be a confusing and challenging process. Here are three CMBS secrets that will strengthen your negotiating position and ensure that you leave nothing on the table.
#1 – EVERYTHING is Negotiable!
Do you need to raise capital for potential acquisitions, new developments or property renovations? Are you nervous about the $350 billion of CMBS loan maturities looming over the next three years or eager to lock in low interest rates for the next ten years? Do you have trapped equity behind a low leverage loan?
Whether you are in the market for a simple refinance or acquisition financing, a discounted-payoff (DPO) financing or a PIP-induced recapitalization, the same rules apply.