EAST WINDSOR, NJ – Investors Savings Bank’s recent refinancing, an 11.4 million fixed-rate mortgage for a 65,000-square foot research and development facility in East Windsor, is a sign that the market truly is back. But the number of deals going on right now could indicate that investors have “very short memories,” says Richard Spengler, chief lending officer of investors.
The East Windsor financing, made on behalf of one of Investors’ best clients, has an unusual term to coordinate with the tenant’s lease, which gave the tenant, a European reseach and development company, an out after 12 years.
Investors remained active in financing throughout the downturn, Spengler observes, but is finding that money is now much more abundant. “It’s amazing how much cash is now being thrown at deals, to the point where some deals don’t make sense,” he says.
Investors also recently completed a $12 million adjustable-rate mortgage refinance for a retail store on Avenue U in Brooklyn, NY, and a $14.25 million fixed-rate mortgage refinance for an 82-unit multi-family property on Rutgers Street in Manhattan. But we’re not yet back at the fund-everything-and-anything-at-all-costs mentality of the pre-recession era. Quality still matters. “So much money is chasing A deals,” Spengler says. “The multiples these are trading at are crazy.”
That could mean that eventually, money begins trickling down to B-level assets as investors seeking a better return than money market accounts. “Lenders aren’t doing crazy things,” Spengler says. “But what are our clients making by keeping their money in the bank?
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