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    Bridge lending will kick into high gear

    Bridge capital will be one of the main sources of lending for the remainder of the year and going into 2025. There are always deals toward the end of the year that require quick-close bridge financing. Count on a very active 2025 as bridge lenders will be a strong option for ground-up construction and heavy value-add deals. Watch for more permanent lenders expanding their programs into the bridge and construction space as a way to generate extra yield. More

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    Sale of the Week: The Landing at Arroyo in Simi Valley, California

    The Landing at Arroyo in Simi Valley traded for $95 million or $448,113 per unit. The property’s location between California State Route 118 and U.S. Highway 101 gives residents access to nearby employment in Warner Center, Thousand Oaks and Camarillo. Built in 2022 on 10 acres, The Landing at Arroyo property has seven buildings, a swimming pool and spa, game room, fitness center, co-working space and central package lockers for deliveries. More

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    CRE lenders and borrowers see a light at the end of the tunnel after the Fed cuts rates

    The Federal Reserve recently lowered the federal funds rate by 50 basis points to a range of 4.75% to 5% and said it expects to make two additional cuts this year and four in 2025. The Fed also lowered its 2024 inflation outlook to 2.3% from 2.6% (personal consumption expenditures) and reduced its GDP growth forecast to 2% from 2.1% for the year. More

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    Deal of the Week: Los Angeles Industrial in Baldwin Park, California

    Artes Capital provided bridge refinancing for a longtime sponsor on a newly completed industrial building in Baldwin Park. The subject property is a 20,847-s.f. building with 1,800 s.f. of office space, 28’ ceiling clearance, four drive-in bays and one dock-high door. The building currently exists as one space but could easily be demised into four units, each with its own office pod. The sponsor financed the initial ground-up construction with another lender with whom Artes maintains a friendly relationship. More

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    Bank construction lending is building back up

    The bank construction lending market is slowly beginning to show positive signs after spending much of the year on pause. Anticipate banks to become more active participants and competitive options for construction lending in 2025. With interest rates starting to decline and the Federal Reserve likely cutting its benchmark rate, more deals will start to pencil, especially construction and construction takeouts. More

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    Equity investors will remain cautious through 2025

    The equity investing market will continue to be slow, especially JV equity investing. Many JV investors are on the sidelines or are opting to provide pref equity instead — but with JV pricing. Investing may not return to normal levels until 2026 after rates drop, construction costs normalize and there have been more transactions in More

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