News Roundup: What is the Latest Asset Class Affected by E-commerce?March 11, 2019
Changed Focus for Late-Cycle CRE Investing
As a global economic downturn begins to take shape, late-cycle commercial real estate investors are focusing on industrial and multifamily as the asset classes that will best weather any coming storms—unlike the office and retail boom that preceded the 2008 crash. The Federal Reserve’s stricter controls on construction loans have effectively prevented overdevelopment, say industry observers, giving rise to predictions that the approaching downturn will be relatively gentle.
Don’t miss the just-published Self-Storage Spotlight, a comprehensive report by Liberty SBF market analysts that surveys every aspect of the “recession-proof” self-storage market and its current, extended growth cycle.
E-Commerce Packages Overflowing Lockers
E-commerce is growing by 20% every year. Multifamily owners have installed digital storage lockers to help handle the heaps of e-commerce packages that don’t make it to tenant doorsteps. Space is limited, lockers are fast becoming overloaded, and adding more lockers is costly and non-scalable as volume increases. One solution is Fetch, a smart new offsite service company that offers multifamily operators unlimited storage for everything from meal kits to mattresses, and allows tenants to schedule deliveries at their convenience.
Liberty SBF Provides $1.6M for Warehouse Acquisition
Liberty SBF successfully closed a $1.6 million SBA 504 loan, in partnership with Florida Business Development Corporation, for an appliance supply company’s acquisition of a warehouse property near Orlando, FL. Despite a delay due to last month’s government shutdown, the transaction closed within a very tight timeframe. Liberty SBF provided 90% LTV financing with both a first and interim second lien loan, allowing the business owner to preserve cash for working capital.
An Overview of the Self-Storage Market
For a quick, clear overview of the robust national self-storage industry, see the market-by-market slideshow by nreionline.com that ranks 36 US MSAs by population and employment growth statistics, vacancy rates, and completed facilities. The #1 growth market? Las Vegas.
How Can We Help You?
Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.