IRVINE, CA—Increasing interest rates and cap rates may impact the number of properties that will trade hands and on borrowers' ability to get the rates and leverage levels that they have enjoyed over the past few years, Money360's president Gary Bechtel tells GlobeSt.com. The marketplace-lending firm closed a record $35.6 million in commercial real estate loans in December 2016, the result of ongoing growth of the company.

December's transactions reflect short-term bridge loans for a mix of property types, including retail, office and industrial in California, Florida and Illinois. A total of five properties were financed including a one-story suburban office building in Irvine, CA; a three-building industrial complex in Richmond, CA; a seven-building anchored retail property in Orlando; a three-story suburban office building in Palm Harbor, FL; and a three-story office property in Rosemont, IL.

We spoke with Bechtel about what the New Year will bring for investors and borrowers.

GlobeSt.com: What are some of the most notable financing trends you foresee for CRE borrowers in 2017?

Bechtel: First and foremost, the New Year will bring a continued increase in interest rates, with an associated increase in capitalization rates that will likely impact the commercial real estate industry. Depending on the amount of investment capital coming into the marketplace, cap rates may lag slightly, but my sense is that they will also slowly creep up, which may eventually lead to a decrease in property values and an owner's ability to sell or finance at current levels. I also believe that some traditional lenders (banks and CMBS platforms, for example) will continue to deal with a changing regulatory environment that has and will affect their ability to provide appreciable amounts of capital to the market. This void will be filled by non-bank, marketplace and private lenders, similar to what happened in 2016.

GlobeSt.com: What are some of the most notable CRE investment trends you foresee for investors in 2017?

Bechtel: I see more of the same from 2016, though as I previously indicated, increasing interest rates and capitalization rates may have an impact on the number of properties that will trade hands. Not only that, but the buyers of those properties will have a harder time getting the kind of interest rates and leverage levels that we have all enjoyed over the past few years.

GlobeSt.com: What is your firm's strategy as we begin the year?

Bechtel: We had an excellent 2016 and look to continue that momentum into 2017 and beyond. We will continue to expand our origination team to generate additional deal flow and add to our back-office personnel so that we can continue to close loans in an expeditious and efficient manner. We have experienced a large increase in our funding capacity and are actively seeking opportunities for our bridge and permanent programs on nationwide basis. We anticipate 2017 being a banner year for Money360.

GlobeSt.com: What else should our readers know about what to expect in 2017?

Bechtel: I think 2017 will be another good year for commercial real estate, both for investors and property owners whose loans are coming due. While interest and capitalization rates will likely continue to increase, they are still low by historical standards. From Money360's standpoint, we have a tremendous about of loan capacity and would welcome the opportunity to work with borrowers their brokers.

IRVINE, CA—Increasing interest rates and cap rates may impact the number of properties that will trade hands and on borrowers' ability to get the rates and leverage levels that they have enjoyed over the past few years, Money360's president Gary Bechtel tells GlobeSt.com. The marketplace-lending firm closed a record $35.6 million in commercial real estate loans in December 2016, the result of ongoing growth of the company.

December's transactions reflect short-term bridge loans for a mix of property types, including retail, office and industrial in California, Florida and Illinois. A total of five properties were financed including a one-story suburban office building in Irvine, CA; a three-building industrial complex in Richmond, CA; a seven-building anchored retail property in Orlando; a three-story suburban office building in Palm Harbor, FL; and a three-story office property in Rosemont, IL.

We spoke with Bechtel about what the New Year will bring for investors and borrowers.

GlobeSt.com: What are some of the most notable financing trends you foresee for CRE borrowers in 2017?

Bechtel: First and foremost, the New Year will bring a continued increase in interest rates, with an associated increase in capitalization rates that will likely impact the commercial real estate industry. Depending on the amount of investment capital coming into the marketplace, cap rates may lag slightly, but my sense is that they will also slowly creep up, which may eventually lead to a decrease in property values and an owner's ability to sell or finance at current levels. I also believe that some traditional lenders (banks and CMBS platforms, for example) will continue to deal with a changing regulatory environment that has and will affect their ability to provide appreciable amounts of capital to the market. This void will be filled by non-bank, marketplace and private lenders, similar to what happened in 2016.

GlobeSt.com: What are some of the most notable CRE investment trends you foresee for investors in 2017?

Bechtel: I see more of the same from 2016, though as I previously indicated, increasing interest rates and capitalization rates may have an impact on the number of properties that will trade hands. Not only that, but the buyers of those properties will have a harder time getting the kind of interest rates and leverage levels that we have all enjoyed over the past few years.

GlobeSt.com: What is your firm's strategy as we begin the year?

Bechtel: We had an excellent 2016 and look to continue that momentum into 2017 and beyond. We will continue to expand our origination team to generate additional deal flow and add to our back-office personnel so that we can continue to close loans in an expeditious and efficient manner. We have experienced a large increase in our funding capacity and are actively seeking opportunities for our bridge and permanent programs on nationwide basis. We anticipate 2017 being a banner year for Money360.

GlobeSt.com: What else should our readers know about what to expect in 2017?

Bechtel: I think 2017 will be another good year for commercial real estate, both for investors and property owners whose loans are coming due. While interest and capitalization rates will likely continue to increase, they are still low by historical standards. From Money360's standpoint, we have a tremendous about of loan capacity and would welcome the opportunity to work with borrowers their brokers.