As the trade wars continue to escalate with President Trump’s new threats to impose high tariffs on Mexico, Chairman Jerome Powell reassured the financial markets on Tuesday, saying the Fed will “act as appropriate to sustain” the current economic expansion. Is a rate cut appropriate to the times? Anxious about the trade war, Wall Street is expecting that the Fed will cut its benchmark rate twice before the end of the year (cnbc.com).
Not all observers think the Fed should act to cut interest rates. Even with inflation low and looming trade threats, Kansas City Federal Reserve President Esther George said there’s no need for a rate cut. President Trump, however, has been leaning on the Fed to cut interest rates in the context of the trade war with China, saying a rate cut would ensure a US victory: “Game over, we win!”
The rate game is not over though. We will keep watching as things unfold but for now, one thing is certain: interest rates today remain low. It’s a good time to lock in a fixed rate commercial property loan. Liberty SBF can get the job done in 45 days or less.
Front exterior of an industrial warehouse building in Queensland Australia. Click to see more…
According to JLL, flex office space is growing by an average of 33 percent each year, accounting for almost two-thirds of US occupancy gains. No markets are over-saturated, and there are plenty of opportunities for this type of asset in many US metropolitan areas. The top ten growth markets are New York City, San Francisco, Silicon Valley, Austin, Boston, Northern Virginia, Washington DC, Seattle, Denver, and Los Angeles’ Westside.
Arizonans Named SBA Small Business Persons of the Year
Jennifer and Jeff Herbert, founders of Superstition Meadery in Prescott, Arizona, were named 2019 SBA Small Business Persons of the Year. They produce mead (fermented honey with fruit, herbs, and spices), the world’s oldest known alcoholic beverage. The Herberts grew their $5.5 million, 140-employee, two-locations business with SBA financial and counseling support. An SBA 504 loan covered the costs of constructing its new distribution and franchise support center in 2017.
What You Need to Know About SBA 504
TMC Financial’s CEO Barbara Morrison spoke about SBA 504 lending to cpexecutive.com. She was asked about the three main things borrowers don’t usually know about 504 lending. One thing she said was that many business owners are unaware of the program and its 10% down payment, which she called a “game-changer” for many owners. Other business owners weren’t aware they qualify as “small” business owner. “The SBA’s definition of ‘small’ is substantially larger than what most people assume. The truth is, most for-profit businesses qualify,” she said. Morrison also said that there is a misconception about how long it takes to get SBA financing.
Liberty SBF Adds New Originator to Fast-Growing National Team
Liberty SBF is excited to announce that Carlos Vasquez, MBA has been appointed VP, Originations, a new originator on our fast-growing national team of top-ranked commercial real estate professionals. Based in Austin, Mr. Vasquez will further increase our capacity to provide high leverage fixed-rate SBA and conventional loans in Texas.
How Can We Help You?
Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.
With U.S. inflation at 1.6 percent for Q1 2019, the Federal Reserve continues to hold off on any interest rate changes following last week’s meeting of the Fed’s Open Market Committee. With both President Trump and Vice President Pence urging the Fed to cut interest rates, the central bank is working to convince observers that its goal is to see price and wage increases without the expectation of rate cuts. Fed Chairman Jerome Powell said the Fed, as a nonpolitical institution, would not be swayed by pressure from the White House.
Powell said he expects price gains to emerge eventually. U.S. employers added 263,000 jobs in April, resulting in a 3.6 percent unemployment rate. If the labor market continues to tighten, employers may raise wages to attract talent, while consumer demand may allow companies to raise prices. Both are slow to appear at this time.
Economists agree that today’s job boom and low inflation seem unlikely, as low unemployment tends to slow the rate of job creation. For now, however, it appears that the Q4 2018 fears of an economic slowdown were unfounded.
Now is the best time to lock in a fixed rate loan while interest rates are still at historic lows. We can get the job done in 45 days or less.
Strong demand for capital in the commercial real estate
sector is expected to continue for the foreseeable future. Historically low
interest rates, a robust economy, and strong employment numbers are boosting a
surge in CRE demand across the country. People
might assume that all commercial real estate lenders are alike, but there are
many types of financial institutions that work with CRE borrowers.
What is a direct lender and how is it different?
CRE loans have typically been funded by traditional lenders, such as banks, CMBS lenders, Fannie Mae, Freddie Mac, and other sources. Today, another type of financial institution has grown in popularity: the direct lender or as it is sometimes called, a non-bank lender (NBL). The implementation of financial regulations over the past few years, such as the Dodd-Frank Act and Basel III risk-capital rules, has made CRE lending less profitable for some traditional financial institutions.
As a result, many tend to focus only on larger, more substantial borrowers and the most lucrative commercial real estate projects. For many small business owners, securing financing from a traditional financial institution can prove difficult. Commercial banks have traditionally had tight credit for small business owners because they view them as risky investments.
Smaller CRE borrowers and owners are forced to look elsewhere for capital.
Direct lenders like Libery SBF have stepped in to fill the funding gap in the CRE market and provide capital to borrowers who are not as well-served by traditional funding sources.
Direct lenders are essential to the commercial real estate mortgage landscape
Why should the borrower who wants to conclude a deal in a timely manner choose a direct or non-bank lender? Because a direct lender offers significant differences from your traditional financial institutions.
Direct lenders offer some banking services, but with a chief difference: a direct lender like Liberty SBF does not take deposits from its customers or the public.
• Traditional financial institutions must follow standardized procedures for loan approvals that take time to work through.
While still adherent to standards and best practices, direct lender like Liberty SBF can offer flexibility to better suit borrowers’ needs for faster, more efficient loan approval. These lenders also offer borrowers a greater level transparency.
• Traditional
financial institutions might provide other services besides affordable loans.
They view borrowers as potential customers for deposit accounts and the full
range of business services for all financial transactions.
Liberty SBF is transactional, focusing on lending, not on promoting additional services. Borrowers are not expected to develop a more comprehensive banking relationship, and have no need for moving deposits, merchant services, credit processing, and other products. Many real estate owners prefer a more streamlined process, and to devote fewer people to dealing with a lender. A lender like Liberty SBF makes loans directly from its balance sheet, hence the term.
• Traditional
financial institutions tend to lend to projects in established, major markets
by well-known entities with long track records.
Direct lenders are more friendly to projects by smaller borrowers that fall outside of these strict parameters. Liberty SBF will work to ensure that borrowers feel comfortable and understand the loan process, and help drive the CRE deal to conclusion.
• Traditional
financial institutions, with standardized procedures for lending, are more
likely to treat every borrower business the same way.
Liberty SBF is a better lender. We can better guide borrowers through the specific requirements of the SBA 504 loan process. We review each business in the context of its industry to underwrite them appropriately.
• Borrowers value non-bank
lenders for their ability to make decisions quickly with a minimum of red tape.
Borrowers have the opportunity to talk about a loan directly with a decision-maker and get a good idea of whether or not the loan is likely to be approved without going through a lengthy process. Liberty SBF has senior executives in major markets nationwide who can meet locally with borrowers and further streamline the loan process. For all of these reasons, direct lenders like Liberty SBF are predicted to grab a bigger piece of the CRE lending market in the future, with ample investor capital available to fund non-bank loans.
How to Obtain a Direct Lender Commercial Real Estate Loan
The decline in funding from conventional commercial banks has left many small business owners in need of financing. When such a business looks for a loan, it’s a good idea to look for the best lenders, whose leaders have years of experience of economic ups and downs in the commercial real estate sector and a thorough understanding of loan procedures. Qualifying for non-bank financing is as rigorous as qualifying for traditional financing.
A commercial real estate borrower should consider the following:
• Identify the reason for seeking a loan: will it be used for a property acquisition, a refinancing, a building upgrade, or other use?
• Consider what kind of financing is appropriate for the project.
• Identify the right lender with expertise with your specific deal and who is experienced, highly responsive, and efficient to apply for a loan.
Loan seekers and their brokers will have the best chance of success when they carefully present their project to the right lender. If they have done their homework and identified the best funding source, a single presentation may be all that’s needed.
Is an SBA 504 Loan Right for Your Business?
SBA loans are
like traditional term loans with greater benefits and they’re partly guaranteed
by the US government. An SBA 504 loan minimizes risk for commercial
lenders, and gives creditworthy business owners (with sufficient liquidity and
net worth to be acceptable to the lender) access to better financing than they
would otherwise qualify for in a conventional loan.
You can find Liberty SBF’s requirements for SBA 504 loans here.
The experts at Liberty SBF specialize in helping guide borrowers though the loan
process efficiently to ensure their successful SBA 504 loan closing. Now
is the time to lock in a fixed-rate commercial property loan while
interest rates are still low. Contact Liberty SBF, and we
can get the job done in 45 days or less.
Will we see an interest rate cut in the near future? The White House is calling on the Federal Reserve to cut interest rates immediately. Rates today are just below 2.5 percent, and President Trump and his economic adviser Larry Kudlow want to see rates at about 2 percent. Investors seem to agree, as Wall Street is already pricing in a rate cut for later this year. Most independent observers in the US are forecasting slowing economic growth.
At the same time, reports CNBC, Fed Chairman Jerome Powell’s dovish March 20 announcement of no change in interest rates set off a week of upheaval in global bond markets, with yields spiraling lower. Expectations of lower interest rates are fueling concerns about a weaker global economy, intensified by fears of what may happen in Europe and uncertainty about a US-China trade deal.
But, leaders in the commercial real estate industry have already said they are anticipating a rise in interest rates, according to Seyfarth Shaw’s 2019 Real Estate Market Sentiment Survey. Amid concerns that the current growth cycle will come to an end, ninety-one percent of respondents said they expect at least one interest rate hike this year, with 6 percent projecting as many as three. The real estate industry sees Fed policy and political and stock market volatility as indications that higher interest rates are on their way.
The one thing we know for sure is that interest rates won’t stay low forever. With a variable rate mortgage tied to the prime rate, monthly payments will rise as rates go up. Business owners with commercial property debt tied to an adjustable rate should protect themselves and their clients by refinancing with a fixed-interest SBA 504 loan. To refinance a government loan (ineligible for the SBA 504), a fixed-rate Liberty SBF conventional loan will do the trick.
Now is the best time to lock in a fixed rate loan while interest rates are still at historic lows. We can get the job done in 45 days or less. Contact us today to get started.
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.
Self-Storage Spotlight
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.
Feds Update Congress, Economists Await Jobs Report
Last week the Federal Reserve reported to Congress that the U.S. economy had maintained “solid growth” in the second half of 2018. In its monetary policy report the Feds gave a mostly sunny outlook for the economy balanced against what Reuters called “emerging domestic and global risks.” Economists are looking forward to this week’s jobs report. Last month the report showed better than expected results and that the job market continued to be a bright spot. Among the industries that led job gains last month were leisure and hospitality, construction, and health care.
Available Healthcare Space With Tighten Further in 2019
In an article about medical properties in Houston, GlobeSt.com talked about the tightening of healthcare space in some markets. The cause us that the number of people who are 65 and over is growing at a much faster rate than the population of people under 64-years-old. Demand for healthcare space in the US could top 225.8 million square feet by the end of 2019. In comparison, it is estimated that there was “110 million square feet of available medical office space in existing and under-construction buildings in the US as of the second quarter of 2018.”
$12.9M Healthcare Facility Closes with Liberty SBA 504 Loan
A skilled nursing home in Tucson, AZ, recently closed with the help of $12.9 million in financing from Liberty SBF. Liberty provided both the $8 million SBA 504 first loan and a $4.9 million interim loan to allow the transaction to proceed while the CDC portion of SBA 504 loan is being completed. Sapphire of Tucson Nursing & Rehab is the area’s only privately-owned skilled nursing facility.
Florida Shines as State Where Most Seniors Want to Retire
Assisted Living and Skilled Nursing Facility owners take note: It’s true, older Americans really do prefer to retire to Florida. In it’s Fun Statistics About Seniors section SeniorLiving.org says that in according to the U.S. Census, the state had the highest percentage of senior residents (19%). Which state had the lowest? Alaska at 9.5%. Probably most obvious were the top reasons seniors gave for preferring the Sunshine State: warm weather and no state taxes.
The Enormous Opportunity for Owner-Occupied Healthcare Facilities
It’s no secret that healthcare in the United States is big business. In 2017, Americans spent nearly $3.5 trillion on their healthcare, and the U.S. Centers for Medicare and Medicaid Services is estimating a 5.3% increase this year. By 2026, that spending is projected to reach $5.7 trillion.
That growth has a whole range of implications, but today we’re going to narrow in on what it means for the real estate market – more specifically, the market for owner-occupied healthcare facilities, and the ways that they can be a perfect fit for SBA 504 financing. Read more.
How Can We Help You?
Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
Bullish on Self Storage
A dependable bet in commercial real estate investment is the $38 billion and growing self storage industry, offering consistent returns even in slow markets, unlike other asset classes. This year, record-setting investment in self storage expansion is expected to add about 40 million SF to the existing, approximately 2.3 billion SF of rent-able space in the US.
Uber-style Self Storage
Innovative self storage investors can learn much from the Uber model of fast, easy, connected service delivered through mobile devices. Automated, reliable security in facilities and online space rentals and ordering of packing supplies could tap large, underserved US markets like New York City. Tech-enabled self storage could serve consumers in growing markets as well.
Good News for Assisted Living
The results of a recent survey by Retirement Living Information Center are a demographic boost for the assisted living industry. When US seniors cannot age in place (their #1 preference), the majority of the 2,300+ senior survey respondents prefer moving to assisted living rather than to move in with family members or burden their children.
From Retail to Industrial
Investors have discovered that vacant big box stores, abandoned victims of the shift from bricks and mortar to ecommerce, are suitable for conversion to industrial spaces to serve the needs of the ecommerce supply chain. Big box locations in secondary markets are in demand for conversions to warehousing and logistics, offering new opportunities for growth in industrial portfolios.
How Can We Help You?
Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.
Rates may be low for now but business owners sitting on debt tied to an adjustable rate should be aware. If you’re a broker or business owner, you can protect your clients or yourself with a fixed-interest SBA 504 or Liberty SBF Conventional loan.
Variable vs. Fixed Rate
Before we get into refinance options, it might be good to compare the two types of rates and show the cost benefit. With a variable rate mortgage tied to the Prime Rate, like an SBA 7a loan, the monthly payment will rise as rates go up. According to the SBA, there is about $113B in 7a loans outstanding making up a major portion of the owner-user debt on commercial real estate in the U.S. Tracking the Prime Rate you can see how it’s risen over the last three years.
On the other hand, the rate on an SBA 504 loan is fixed so that, for the term of the loan, the rate does not change. Using a $1MM mortgage as an example, let’s compare the payment on an adjustable SBA 7a loan tied to the Prime Rate to that of a fixed-rate loan.
Fixed Rate (Today)
7a (Initial Rate)
7a (Today)
Loan Amount
$1M
$1M
$1M
Rate
5.75%
6.00%
7.75%
Monthly Payment
$6,291
$6,443
$7,553
Additional Payment vs. Fixed
$152
$1,262
If your SBA 7a loan was based on the Prime Rate with a margin of 2.25% in 2017 your initial rate would have been 6%. (At the time, the Prime Rate was 3.75%. A margin is the amount that your lender adds to an index rate like Prime to calculate your mortgage rate. So Prime + 2.25% gives you your initial rate of 6%.)
Today, the Prime Rate sits at 5.5% so in two years your rate would have adjusted to 7.75%. (5.5% + 2.25% = 7.75%)
A business owner would see a significant increase in their monthly payment in a very short time, from $6,443 to $7,553, a $1,262 per month increase.
Comparing the above scenario to a fixed rate, a borrower would see a savings of $1,262 per month in a fixed rate loan when compared to the adjustable SBA 7a. And, the longer you wait, the more it might cost you or your client as rates continue to rise.
As we mentioned before, you have options.
Refinance to an SBA 504 loan
In 2016, an act of Congress made the debt refinance aspect of the fixed-rate SBA 504 Loan Program permanent. The enhancement was made to help small business owners ease their financial burden. As we saw above, a long term fixed-rate loan can help refinance debt from adjustable rate loans with significant savings to borrowers. The refinancing loan is structured like SBA’s traditional 504 loan.
A borrower can leverage up to 90% of the value of a commercial property to pay off qualifying debt. An SBA 504 loan is made up of a first and a second lien. A lender provides up to 50% of the value of the property on the first loan and a non-profit organization authorized by the SBA called a Certified Development Company (CDC) funds the government guaranteed second loan up to 40%.
The refinance can include cash-out on top of paying off a mortgage to cover eligible business operating expenses such as salaries, rent, utilities, inventory, or other obligations of the business but the maximum loan-to-value would then be lowered to 85 percent. The maximum cash an owner can take is 20% of the appraised value of the property. (To find out even more about the SBA 504 refinance program read the article we published at the time in Entrepreneur.)
Let’s break it down using a property appraised at $5MM as an example. The owner wants to refinance a mortgage on a commercial property plus working capital.
Property Value
Mortgage Payoff
Maximum Working Capital
$5,000,000
$3,250,000
$1,000,000
When an SBA 504 Doesn’t Work
The SBA 504 refinance loan is a great way for business owners to fix in a long-term rate on a commercial property and provides plenty of other great benefits. There are some instances where an SBA 504 loan can be ineligible.
First, an SBA 504 loan cannot be used to refinance an existing government guaranteed loan like another SBA 504 loan or an SBA 7a loan. Only conventional loans are eligible, like a bank loan or CMBS.
Also, if a business needs more than 20% LTV in working capital then the SBA 504 Loan Program is ineligible.
As an alternative, there are conventional owner-user loans programs available and each one is slightly different. We will use Liberty SBF’s Conventional Loan Program as an example, which was created specifically to meet the needs of business owners who can’t go with an SBA 504 loan refinance.
Refinance to a Conventional loan
With a majority of the variable rate debt on owner-user commercial properties coming from the SBA, the most common scenario is when a property owner needs to refinance an SBA 7a loan to a fixed rate. Since the SBA 504 program is ineligible to refinance a government loan, a conventional loan will do the trick.
Liberty SBF’s Conventional Loan Program was designed with this particular situation in mind and in almost every way it is identical to the SBA 504 loan. The property still needs to be at least 51% owner-occupied to be eligible and an owner can still take cash-out for business expenses if needed.
The maximum LTV is a little lower on a conventional loan across the board. Liberty SBF has a maximum 70% LTV on multi-use property types and 65% on hotels and special-use.
While all loans are subject to underwriting approval, Liberty SBF’s conventional loan is a more flexible product for deals outside of SBA 504 eligibility.
The cash-out portion allows for one of the largest variances. A Liberty SBF conventional loan has no maximum LTV restrictions on cash-out as long as it is within the maximum LTV range of the property type. When compared to the SBA 504, which allows only up to 20% LTV on the cash-out portion of a loan, this is a huge advantage for business owners who need to draw more capital out of a property.
With the SBA, working capital must be specifically tied to expenses that are incurred within the business being run from the property. Liberty SBF’s conventional loan allows proceeds to be used for other approved purposes, like the purchase of another owner-occupied business.
Of course, the main focus of the program is to refinance out of adjustable rate SBA 7a debt into a fixed rate option and help business owners control monthly expenses, something the Liberty SBF Conventional Loan program does very well.
It’s Time to Refinance to a Fixed Rate
We’re not making any predictions here but ultra-low interest rates can’t last forever. If past is prologue then rates will rise again, along with a business owners’ monthly cost of capital.
Companies need capital to grow. Both the SBA 504 and the Liberty SBF Conventional loan programs allow owners to take advantage of the equity in a commercial property at a fixed-rate to control rising monthly payments and expand their businesses.
Talk to us about options to refinance a rising adjustable rate commercial real estate loans into one of our fixed rate programs. And, as always, we’re more than happy to help.
The Latest Commercial Real Estate News From Liberty SBF
Self-storage is Attractive Alternative in CRE
So-called alternative assets like self-storage and student housing are gaining interest in the commercial real estate industry. In bear markets, self-storage has historically faired well, offering a safe asset for those looking to put their money in a place that might do well if the economy softens. According to reports, alternatives are attracting attention but the market still sees comfort in office, retail, industrial and apartment properties as well as available data to support their decisions.
SBA 504 Loans and Self-storage Financing
Warehouse building with self storage units. Self storage facility. Roll up doors on self storage facility. One door open with boxes and furniture in doorway.
While the mega players don’t need the SBA to finance property purchases, the independent mini storage or self-storage operator will not find a loan that beats the SBA 504. For facilities that are greater than 2-years-old, borrowers can take advantage of all the many benefits that come with the SBA 504 program: 85% loan-to-value financing, a low fixed-rate and up to 25-year terms. Read on to find out how the SBA 504 loan can finance self-storage facilities.
Returned Merchandise a Boon for Warehouses
The industrial sector is already enjoying the benefits of online shopping and the Amazon-effect on the economy. Now, the reverse is true. Reverse logistics – when consumers return unwanted items – is creating demand for even more space. According to Bisnow, this phenomenon requires upwards of 20% more space than an outbound supply chain. A CBRE report states that reverse logistics is “creating tremendous industrial real estate opportunities.”
Liberty Closes Over $40MM in Industrial Property Loans
Liberty SBF clients have been participating in the new economy with over $40MM in industrial property loans closed across the county. See all of our recently closed loans.
How Can We Help You?
Liberty SBF offers quick closings for SBA 504 and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
Trends Drive Growth in Healthcare CRE
As one of the fastest-growing segments of the economy, the U.S. healthcare industry is changing the landscape of the commercial real estate industry with an increasing trend toward delivering care in places other than the traditional hospital. An aging population is one factor driving this growth. According to an article in GlobeSt.com, healthcare spending jumped by 33% since 2000 and now accounts for 17.9% of US GDP. The outlook over the next few years is very favorable with growth in spending expected to be about 5% per year.
Liberty SBF Closes $2.1MM Conventional Loan on Assisted Living/Skilled Nursing Facility
Recently, Liberty SBF closed on a $2.1MM fixed-rate conventional loan for an owner-user medical facility in San Diego, CA. The loan will help the experienced business owners expand and grow by refinancing a debt, including a construction loan. The broker who brought the deal to Liberty SBF earned a referral fee at closing. See more closed deals here.
Fixed-rate Adds Value for Future Buyers
Experts observed that property owners with eligible assets are looking to lock in long-term fixed rates. Locking in a rate now while still at historic lows isn’t only a good way to hedge against rising rates in the future, it’s a good business decision. According to a report in REJournals.com, a low rate with the right structure adds value to an asset for future buyers assuming in-place debt. Read the entire article here.
90% LTV, Fixed-rate SBA 504 Loan For Warehouse Purchase
Liberty SBF recently closed a $3MM fixed-rate SBA 504 loan to acquire a warehouse in Roanoke, VA. A furniture importer whose sales were constrained by inadequate warehouse space purchased a larger facility to increase business. Quick work by the Liberty SBF team allowed the deal to close before year-end.
How Can We Help You?
Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer quick closings for SBA 504 and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
The 18 CRE Trends That’ll Dominate 2019
Prognostication is always a risky business, but nevertheless, Bisnow found some industry experts willing to play Nostradamus for the coming year. A few predicted highlights include a continued boom in industrial demand from eCommerce, rising interest rates, and record-breaking hotel occupancy. Check out the full list.
Flexible Space Sees Major Growth
As technology changes the way people live, work and commute, investors are increasingly looking to invest in buildings with a high percentage of flexible space, reports GlobeSt. In fact, JLL recently noted that office flex grew by 29% in 2017, and is likely to grow by more than 25% in 2018.
Just Closed! $1.5M SBA 504 Loan for Retail Space in New York
Liberty is happy to announce that we’ve just closed a $1.5 million SBA 504 loan for the acquisition of a retail property in the Glendale neighborhood of Queens, NY.
Industrial Construction to Swell in Chicago
Similar to the national market, Chicago has seen record-breaking industrial construction in the last few years, including finishing 19 million SF in 2016 and 22.6 million SF in 2017. Though growth hasn’t been as strong in 2018, experts believe it will ramp up again soon in response to increasing demand from users and investors.
Liberty Funds More Than $39 Million in Recent Industrial Acquisitions
Recently, Liberty has funded more than $39 million in industrial and warehouse acquisitions for business owners taking advantage of some of the hottest industrial markets in the country.
2018 Prediction Scorecard
We’ve got to give it to the folks at Bisnow for being willing to assess the accuracy of their predictions from last year. From a booming industrial sector to leisure travel-focused hotels to senior housing, they gave themselves a passing grade. Maybe that means good things for their 2019 predictions?
How Can We Help You?
Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
The 2019 Outlook for Industrial: Strong, Not Stronger
The industrial sector dynamics suggest that there’s still growth to be had in 2019, but that it’s unlikely that 2019 will be a stronger year for industrial than 2018 was, Geoffrey Kasselman of Newmark Knight Frank tells RE Journals.
In a New York, Nashville and Phoenix State of Mind
Industrial real estate is performing at record levels across the country. But New York City – specifically the boroughs of the Bronx, Queens and Staten Island – Nashville and Phoenix are the top three markets, reports View the Space.
Liberty Finances More Than $18 Million in Projects in New York, Tennessee & Arizona
As convenience becomes a priority in healthcare, more and more patients are opting for treatment in smaller facilities rather than large hospitals. Surgery centers have grown 82% since 2000, and the number of hospitals and ambulatory surgery centers in the U.S. is now almost equal. This growth is expected to continue into 2019, GlobeSt reports.
Liberty Provides More Than $14.2 Million in Healthcare Sector Financing
Liberty provided more than $14.2 million in SBA 504 loans to projects in the healthcare sector in 2018, including a skilled nursing facility in Tucson and a medical facility acquisition in Miami.
Fundamentals Are Key for Midwest CRE in 2019
Though it’s unclear how politics, oversaturation and interest rates will affect the commercial real estate landscape in 2019, the strength of Chicago’s economy means the devil is ultimately in the details of each particular deal, notes RE Journals.
How Can We Help You?
Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
No End in Sight for Industrial Real Estate in Southern California
Industrial is leading commercial real estate across the country, but in Southern California, it’s breaking records left and right. According to GlobeSt, industrial prices in Los Angeles are currently 70% above the national average, while prices in Orange County and Inland Empire have increased significantly in the last five years.
Inland is the New Coastal
Thanks to the vested interest of local community banks, higher cap rates, growing economies and population increases driven by affordability, some investors are moving away from big coastal markets and focusing instead on smaller secondary markets in the Midwest, reports Bisnow.
Liberty Provides More Than $28 Million in SBA 504 Funding in Non-Coastal Areas
Liberty has provided more than $28 million in SBA 504 loans for the acquisition of properties in non-coastal areas in Nevada, Utah, Arizona, Pennsylvania, California and Georgia.
Hotels Are Doing Better than Ever
In 2018, more hotel rooms were occupied – and at higher rates– than ever before. National Real Estate Investor notes that as long as the demand for hotel rooms continues to outpace the number of rooms available, occupancy and rental rates will continue to increase.
Liberty Provides More Than $12 Million in Financing for Hotels
The current real estate expansion is almost in its ninth year, making it the second-longest in the post-World War II era. Many in the commercial real estate industry are wondering if a recession is imminent. While many economists believe that this expansion is in its later stages, experts have put the odds of a recession in the next year at just 15%, GlobeSt reports.
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Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.
The Latest Commercial Real Estate News From Liberty SBF
Will Self-Driving Cars Change Commercial Real Estate?
Incorporating parking is an integral part of commercial real estate development, particularly in urban areas. Bisnow reports that autonomous vehicles, which could drop people off at work instead of being parked for hours on end, could dramatically change the development of commercial real estate moving forward.
Liberty Provides $ 43.6 Million in SBA 504 Loans for Properties in Urban Areas
Liberty has provided more than $43.6 million in financing for the acquisition of properties in major U.S. cities including Miami, Tucson, New York, San Diego, Atlanta, Memphis, Las Vegas, and Philadelphia.
Industrial is Real Estate’s “Darling” Class
Industrial, distribution and warehouse continue to lead the commercial real estate pack across the country. GlobeSt reports that the strong performance of industrial real estate can be partly attributed to recent investments in multi-story industrial properties.
Liberty Provides $32.8 Million to Finance Industrial Properties
The Future of Commercial Real Estate and Technology
It’s not just automated vehicles that might change the face of commercial real estate. National Real Estate Investor reports on two ongoing MIT studies aimed to better understand how design and technology will change the way people live and work and how those changes will affect the commercial real estate landscape.
Healthcare Real Estate Growing Faster than U.S. Economy
As Americans live longer and medical technology improves, demand for convenient access to healthcare continues to steadily increase. GlobeSt reports that the growth in this sector is outpacing overall economic growth and that demand for existing healthcare facilities and new constructions will continue to grow in 2019.
How Can We Help You?
Liberty SBF is the #1 ranked non-bank SBA 504 lender by volume in the country. We offer personal service for SBA 504, bridge and conventional loans. We’d love to help you.
