1 Financing Strategies for Today’s Market Tom Detienne David Woida Investors Community Bank NorthMarq Capital 860 N. Rapids Road 250 N. Sunny Slope Rd., # 300 Manitowoc, WI Brookfield, WI (920) 686-5626 (262) 787-4997 [email protected][email protected]
Financing Strategies for Today’s Market. Tom DetienneDavid Woida Investors Community BankNorthMarq Capital 860 N. Rapids Road250 N. Sunny Slope Rd., # 300 Manitowoc, WIBrookfield, WI (920) 686-5626(262) 787-4997 [email protected][email protected]. - PowerPoint PPT Presentation
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Financing Strategies for
Today’s Market
Tom Detienne David WoidaInvestors Community Bank NorthMarq Capital860 N. Rapids Road 250 N. Sunny Slope Rd., # 300Manitowoc, WI Brookfield, WI (920) 686-5626 (262) [email protected][email protected]
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Agenda
• Industry Summary• Rates and Options• Key Differences between lenders• Underwriting 201• Examples• Q & A
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Industry Summary
• Expanded options for CRE finance– Conventional Banks / portfolio lenders– Conduit Lenders (CMBS)– Insurance Companies– Government-Sponsored Agencies (Fannie Mae
and Freddie Mac)– Mezzanine– Equity
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Commercial Mortgages
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Holders of Commercial and Multifamily Mortgage Loans
1990 2006 Q1
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Yield Curve
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Capitalization Rates
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U.S. CMBS Issuance and Interest Rates
Source: Commercial Mortgage Alert and Federal Reserve
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CMBS Rates
Property Type Leverage DSCR Spread (1) Rate (2)
Grocery Anchored Retail 85% LTV 1.20X 110 5.85%
Strong Anchored Retail 80% LTV 1.15X 100 5.75%
Weak Anchored Retail 80% LTV 1.30X 125 6.00%
Un-Anchored Retail 80% LTV 1.30X 135 6.10%
High End Specialty Retail 80% LTV 1.30X 110 5.85%
Multi-Tenant Office (Class A) 75% LTV 1.45X 118 5.93%
Multi-Tenant Office (Class B) 75% LTV 1.50X 130 6.05%
Medical Office 78% LTV 1.55X 120 5.95%
Medical Office (Single Tenant) 75% LTV 1.35X 125 6.00%