Developers Can't Find The Money

Commercial real estate developers go into detail on the impact of the financial crisis on their ability to make projects happen.

"The banking crisis 'pretty much stopped the majority of commercial development dead in their tracks, except non-leveraged projects, smaller investments and owner-occupied deals, and institutional projects that were already in progress,' [Developer Rick] DeKam said. 'I think you will see institutional, medical and even multifamily development as the steady-performing real estate over the next few years.'

Michael Cagen, associate broker specializing in multifamily investment at Marcus & Millichap's Grand Rapids office, has seen the same financing challenges of late as other real estate categories.

'Only several months ago, we were able to find financing, but at higher interest rates and at lower loan to values,' Cagen said. 'Today, lenders tell you they need to have the complete banking relationship with you, that the buyer needs to be local and that it needs to be newer property. In essence, this means the number of lenders who are available to finance a given deal has continued to shrink.'"

Full Story: Commercial real estate financing goes from bad to worse

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00