DEJ: How do you think you can get this particular lender to see things your way?
Petriella: This particular borrower--this is a $30-million loan--locked the rate when T-bills were at 490 and locked the spread at 140. That was three weeks ago. The T-bills are now at 460, but the lender still wants to increase the spread to 200. Our argument is that it can't have it both ways--T-bills are now lower, but the lender still wants to raise the spread. How will we change the lender's mind? There are number of ways, starting with the volume of business we bring to it. And there are other issues on the table I can't talk about.
DEJ: So you are using the aggregate business you bring this particular lender to help this borrower.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
