Financing Trends Keep Changing

(Ian Ritter is national online editor for GlobeSt.com/RETAIL.)

NEW YORK CITY-Not only have more people entered the real estate-financing arena, but the way those deals are getting done keeps changing, according to speakers here at yesterday’s RealShare Structured Finance. “It’s an interesting time to raise capital,” said Jay Rollins, president of Denver-based JCR Capital. “The market has changed quite drastically in terms of spreads and competition over the last 12 months.”

Three years ago, firms were getting returns on deals in the high-teen to 20% range, but 13% to 16% is now more common, said Joseph Green, president and chief financial officer of Raleigh, NC-based Winston Hotels. “Spreads have come down across the board for any type of real estate investment,” added Jay Eisner, partner at Philadelphia-based LEM Mezzanine.