March 19th, 2010
Our Conduit Loan Window is OPEN for Business
Conduit loans are low rate, non recourse permanent loans secured by income producing commercial real estate, often delivered to the capital markets through securitization. Over the past several years, conduit loans have become the leading choice for sponsors seeking the lowest cost financing for stabilized Class A, Class B, and to a lesser extent major market Class C commercial property nationwide. Conduit loans can save millions in interest and prepayment expenses over the life of a loan, are available in almost all loan amounts, and are generally assumable to boot.
Sounds great right? Then how come your lender is telling you they can't offer conduit loan programs in the current market?
The answer is simple. Due to their near-total reliance on Wall Street for conduit financing, and the types of loans they've securitized in the past through these channels, the majority of CMBS conduit lenders can no longer obtain the kind of inexpensive, flexible conduit financing they were accustomed to delivering. The conduit loan business isn't closed, but your lender's is.
We still fund conduit loans. We still deliver amazing, non recourse permanent financing at rates very comparable to those achieved prior to recent market events. And we continue to innovate, offering unique conduit products and conduit alternatives. Purchase, Refinance, and a market leading Construction to Permanent program indexed over Treasury, not LIBOR. Give us a call. Find out How. +1 (800) 290-4770
Whether you're outgrowing your local lenders, embarking on major expansion, looking to maximize your leverage, or entering a new market, our Conduit Lending Group is focused on developing strong, long term relationships with property owners nationwide and delivering real solutions for the challenges they face.
We Deliver Speed, Service, Structuring & Size
In our business, strong relationships are built on trust, fit and being able to consistently finish what we start. So we seek out sponsors who are uniquely positioned in markets we understand, and we support them with a solid foundation of commercial loan excellence.
Speed
Nobody's Faster. By combining broad domain expertise, deep experience in the capital markets, and a no-nonsense approach to debt placement with the ever improving efficiencies made possible by our investments in technology, we deliver quick answers, and even quicker closings. And we need to be that fast to maintain over $4Bn in loan volume across all products over the past 24 months.
Service
We get it. You're busy. You've got an empire to build and mouths to feed. That's why you get the full concierge-level treatment from us, totally unlike any other commercial loan company in the market. Experience our streamlined documentation process & full service approach and you'll understand why many sponsors mistake us for a private bank. The difference is, we understand the challenges of operating a business. We're businesspeople just like you, not bankers, and proud of that pedigree.
Structuring
You don't need creative financing to benefit from creativity. Whether your goal is to minimize your equity investment and maximize leverage or utilize complex collateral, we've seen it all. Creative structuring can make a deal or even save a deal, and requires two key ingredients which we have in spades: Broad access to all forms of national and international capital along with real experience putting that capital together with top tier sponsors in complex transactions. Our team is drawn from all across the real estate, investment banking, legal, and private equity world, with decades of experience in engineering financing ranging from the conventional to the downright exotic.
Size
One of the top reasons our new sponsors cite for doing business with us is that they've hit a "lending limit" with their current bank. It's a common problem, and depending on your market can occur when you hit anywhere from $10MM to $100MM out to one bank or local group. Whether you're seeking financing for your first $1MM apartment building or your tenth $800MM hotel resort development, you'll find that we have a business unit that caters to your needs, and the broad access to hundreds of sources of capital running the gamut from the traditional to the absolutely adventurous.
October 26th, 2007
Equity market activity over the past two weeks has pulled some money out of the short end of the treasury yield curve, but the most popular conduit loan index (10 Year T) continues to remain relatively flat at a yield of 4.41%, historically quite low. This is excellent news for sponsors seeking conduit financing in today’s market, as spreads for Class A stabilized income property remained relatively unchanged over the period. 5 year and 7 year rates on conduit loans have been stable as well, and the Fed’s anticipated easing seems to be priced in through December. A return to liquidity? Not yet, but we do have relative stability in the benchmarks for the moment.
TREASURIES-Bonds soften, stock rally trumps rate-cut hopes
NEW YORK, Oct 26 (Reuters) - U.S. Treasuries were flat to modestly lower in choppy trading on Friday, as a stock rally cooled safe-haven demand for low-risk bonds, trumping expectations of a Federal Reserve interest rate cut next week.Investors moved to the sidelines, taking steam out of a nearly two-week rally driven by anticipation of more monetary easing from the Fed. Treasury prices ended not far above their session lows, closing nearly unchanged on the week.
“The market seems a bit tired. It has been through a lot in the past two weeks,” said George Adell, fixed-income strategist at Commerce Capital Market in Jupiter, Florida.
Wall Street anticipates the Fed will trim the benchmark federal funds rate a quarter percentage point to 4.50 percent in order to forestall a housing-led economic slowdown, analysts said.
Despite the market’s pullback on Friday, U.S. interest rate futures markets see a rate cut next week as virtually a done deal and a follow-up in December as highly likely.
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