Will Zillow Enter the CRE Market? Bridge Loan Rates and Commentary From Liberty SBF

March 31, 2014

The Commercial Real Estate investment market is getting some love from high net worth individuals, according to an article in National Real Estate Investor. That pool of capital “may drive the next wave of investment,” the website reported. Money managers are seeing these billion dollar investors tweak their portfolios from stocks and bonds into illiquid real estate portfolio holdings ever so slightly but a small percentage goes a long way when talking about that kind of cash.

He says he’s not making any promises but Zillow CEO Spencer Rascoff said recently that he keeps getting asked if he will get into the Commercial Real Estate market like his company did for residential homes. That move would bring competition to LoopNet, the commercial service owned by CoStar Group. CoStar announced it is buying Apartments.com for $585 million in cash. That gives it a leg in the resi rental space.

Reaction to Fed Chairwoman Janet Yellen’s news conference was swift in the market when she committed the Fed to the possibility of raising rates about six-months after QE ends by fall. That was sooner than many investor expected but the bond market didn’t react with the same veracity as stocks. Now that investors have had a chance to digest the news from the Fed’s statement people realize that the agency is doing exactly what was expected: It continued to taper by $10 billion per month, rates stayed near-zero and forward guidance language was tweak. Yellen’s explanation of that language was what sparked the concern.

Some analysts are recommending to buy into the weakness showing up in the bond market as traders glean news of the Federal Reserve’s statement instead of digging into the actual content. Yields on the 10-year treasury sank to 2.70% on Wednesday as “investors bought intermediate-term government debt they had ditched in the aftermath of the Federal Reserve’s meeting last week,” according to MarketWatch.

Durable goods orders increased by 2.2% to $229.4 billion in February according to the Commerce Department. The increase, follows two consecutive monthly decreases. Investors continue to vacillate between a trickle of the good news in the economy and bad news on the international front as Russia stands its ground in Ukraine.

Close with Confidence on Value-Add CRE Property and Financing Deals With Liberty SBF’s Non-Recourse Bridge Loan

Bridge Loan Parameters

Refinance, aquisitions, lease-ups, repositioning / transitional properties, tight closing deadlines, refinancing of maturing loans and partner buyouts for office, retail, industrial, and multi-family.

Rates
Floating rate loans starting as low at 5.99%

Term
1-3 Years

Prepayment
Waived. (If Liberty SBF provides the permanent financing.)

Loan Parameters
• Up to 75%
• DSCR starting at 0.95x
• Non recourse
• Pre-approval for permanent financing including CMBS

For more information about our Loans click here.

Recent Bridge Deals

tampa medical office

$3,562,000 Bridge Loan Financing – Partial recourse bridge loan to restructure a holding company and provide working capital on a “state-of-the-art” medical center in Tampa, FL.

building-corner (1)

$7,150,000 Bridge Loan Financing – Partial recourse bridge loan to close on a complex distressed real estate acquisition in Green Bay, WI for a paper product and textile processing business.