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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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    Lenders are moving back toward SFR/BTR deals

    Look for more competition and increased flexibility for single-family rental (SFR) and build-to-rent (BTR) deals going forward. Expect overall deal volume to ramp up later this year into a strong 2025. Next year should be robust as the Federal Reserve will have begun cutting short-term rates and there will not be any election uncertainty. Rates could even start coming down as early as next month. Lenders will become less selective given the amount of dry powder raised that still needs to be deployed. More

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    C-PACE will pick up the pace next year

    Count on 2025 to be a record year for C-PACE financing. There will be increased demand, especially because of the disruption in the marketplace, as C-PACE can help fill the gap left behind by senior lenders. This can be used to fund new construction developments, substantial rehabilitation projects and to recapitalize recently completed projects. More More

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