(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22nd in Los Angeles).
NEWPORT BEACH, CA-“The borrower landscape in 2012 will be interesting. Interest rates are at historically low levels, and multifamily financing is available, but finding a deal can be the challenge…they aren’t widely available.” So said panelist Heidi McKibben, vice president of Fannie Mae’s multifamily division, at Beech Street Capital LLC’s commercial real estate networking event and cocktail reception. “It is getting harder and harder to find deals on the coast, but some borrowers are looking elsewhere.”
McKibben joined other panelists and moderator Grace Huebscher, president and CEO of Beech Street Capital at the event, which was an intimate gathering of about 60 investors, and also included Fannie Mae, Freddie Mac and Beech Street representatives. “Even though rates are good right now, we are still trying to underwrite appropriately to the market,” McKibben added.
In terms of interest rates, Paul Angle, regional managing director for Freddie Mac’s multifamily division, said that “Borrowers should take advantage of the low interest rates in 2012.” He added that he “predicts an active year ahead” in regards to maturities coming up.
Jeffrey Allen, CEO of Raintree Partners, pointed out that “Two of three years ago, we thought rates weren’t going anywhere but up.” He added that “Clearly the amount of financing in the marketplace has driven competition.”
McKibben pointed out that “In 2012, we expect to see life companies and other sources of capital in the market, as well as the Agencies, as sources of liquidity for multifamily".
In terms of construction financing, Allen says it is available. “We have found a lot of bank interest in construction financing to us typically in the range of 70% to 75% loan-to-value,” he said, “so far, we haven’t had a lack of capital.”
Closing the afternoon networking event was keynote speaker Christopher Thornberg, founding partner of Beacon Economics LLC, who pointed out that California economies are gaining momentum. Thornberg, who isn’t always the most optimistic of economists, was rather upbeat, and described his view of the economy as “hopeful.”
By no stretch are we completely out of the woods, said Thornberg, but “the first step to full recovery is for the economy to start picking up speed, and that is what I see happening.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
