HOWELL, NJ-Mark Scott of Commercial Mortgage Capital has closed a seven-year permanent loan on a Walgreens leased property here. The borrowers were seeking a low fixed-rate loan on the newly constructed Walgreens. According to Scott,the client was very sensitive to rate and desired a flexible term on a fixed rate loan. The deal was negotiated with one three-year extension option with a regional bank.
Scott tells GlobeSt.com that life company financing is plentiful for quality assets. “Life companies continue to return to market seeking to finance low leverage stabilized assets in the nation's top five national metro markets, which certainly includes New York and New Jersey.”
He adds that “multifamily 10-year fixed rates are available from 4% (low leverage below 60%) to 5.20% (higher leverage; 80% of value). And w just locked a 10/10 self-liquidating, four-month forward multifamily loan at 3.76%. The smart money is looking forward to lock in today’s rates on loans maturing or prepayable within the next year or more.”
Scott adds that office, warehouse and retail financing is available in the 5% to 6.25% range on seven-to-10-year loan terms. “Overall conditions remain soft with little--but improving-- transactional velocity,” he says.
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