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More Lenders than Borrowers Continues to be the Trend

NEW YORK CITY-Sonnenblick-Goldman's Peter Berk, director of Capital Markets, tells GlobeSt.com, "There's more lender interest than borrowers." He also says the trend will likely not end before 2002. He also notes an increased aggressiveness on Wall Street.

By Amy Vaughn | Updated on June 04, 2001

NEW YORK CITY-When asked what the debt market for commercial real estate investments is looking like these days, Peter Berk, director of Capital Markets for Sonnenblick-Goldman, says, “There’s more lender interest than borrowers.” He also adds, “Generally, Wall Street has been more aggressive than usual as there’s less flow out there. It’s more competitive.” He also shared insight into where investments will likely be made and the types of risks they’ll likely be willing to make.

As to the greater numbers of lenders than borrowers Berk adds, “This has been the trend over the last six months. I see this continuing through at least the end of the year and hopefully in 2002 it will return to its historic levels, or at least what it did in 1998-1999.” He also notes, “For every deal we get in here we get at least a dozen requests.”

He notes that there is currently “a lot of 10-year fixed-rate” loans “out there.” He says in general that there’s “tons of money out there.” Specifically, he says investments in office properties are “at 60-70% LDV and 200-220 over range (over 10-year treasuries), for hotels 250-270 over range (over 10-year treasuries) and for multifamily, 180-200.”

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