SBA 504 Archives - Page 3 of 4

111111

Flex Office Trend and the Small Business Persons of the Year…

Posted on May 23, 2019 by kunallibertysbf

Flex Office Is Growing in Urban Markets

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.

Let’s Talk.

111111

Hotel Financing With the SBA 504 Loan Program

Posted on March 28, 2019 by kunallibertysbf

The US hotel industry saw another record year in 2018, reaching absolute values that were the highest ever benchmarked. A 10th consecutive year of growth is predicted for 2019, according to CBRE Hotels Americas Research.

Borrowers who seek to acquire or refinance hotel properties are finding that some lenders today are cautious on hotel deals, as many see the sector at a peak.

There are still good deals out there. As experienced lenders, we are convinced that the best, most cost-effective solution is to finance your hotel is with an SBA 504 loan. In this article, we will walk you through today’s peak hotel market, as well as recent changes that affect SBA 504 loans.

The thriving hotel market

The demand for hotel accommodations continues its nine-year rise in line with the continuing strength of the US economy, with hotel occupancy seeing a 0.5 percent year-over-year increase to 66.2 percent in 2018, the fifth straight record level for the industry. The average daily rate (ADR) rose 2.4 percent to $129.83, and revenue per available room (RevPAR) increased 2.9 percent to $85.96. Group and corporate travel stays will be a consistent source of demand growth for hotel rooms in the U.S., according to STR. Additionally, weekday demand is very strong, indicating that corporate/ business guests are traveling more frequently.

CBRE even predicts that overall hotel returns over the next three years will be the highest of any commercial real-estate sector. According to CBRE’s R. Mark Woodworth, “The magnitude of profit growth may not be spectacular, but the probability for revenue growth is solid, and operating margins remain well above historical levels.” Growth will be slower for sure. STR & Tourism Economics forecasts demand growth year¬-over-¬year at 1.9 percent, compared to prior projections of 2 percent.

What does this mean for loan seekers?

Hotels have emerged as one of the commercial real estate sectors where owners can still make the returns compute. Bank financing on commercial real estate isn’t as readily available today as it was over the past few years, however, and owners may face challenges in finding affordable financing. Timing can make the difference between winning and losing for owners seeking to lock in a relatively low long-term interest rate on an asset. We believe the proven solution is to borrow from an experienced hotel lender with expertise in SBA 504 loans. Capital is there for reaching short- and long-term financing goals if you know where to find it.

SBA 504 loans and hotels

Hotel owners will find the SBA 504 loan has advantages that no other can equal. For facilities that are older than two years, borrowers can take advantage of all the many benefits that come with the SBA 504 program: 85 percent LTV (loan-to-value ratio) financing, a low fixed rate, and up to 25-year terms. The SBA guarantees a portion of the loan assuming the risk of default, allowing for a much higher LTV than any conventional commercial property mortgage alone. SBA 504 loans can be used solely to acquire existing hotels, acquire and renovate a hotel, and refinance an existing loan.

The SBA classifies some properties as “special purpose” properties. It defines a special purpose property as “a property that is appropriate for one use or limited use: a building that cannot be converted to another use without a large capital investment,” and requires a 15 percent down payment on 504 loans.

Also, borrowers cannot use the SBA 504 program to refinance an existing SBA or other government loan.

Close-up of an SBA 504 loan

Let’s demystify the nature of an SBA 504 loan. Imagine a borrower is seeking SBA 504 financing for acquiring a Best Western hotel for $4.2 million, including the PIP. Where will the funds come from? How much money does the borrower need to come up with out-of-pocket for the down payment?

We can calculate the financing structure of an SBA 504 loan simply as: 50 percent + 35 percent + 15 percent = 100 percent. That formula breaks down as follows:

• 50 percent: The first 50 percent takes the form of a conventional loan from a financial institution like a bank or specialty SBA lender. The first-lien loan is usually a fixed-rate loan amortized over 25 to 30 years. In our example, this means that the first-lien lender will commit $2.1 million toward the total financing of the deal.

• 35 percent: The next 35 percent of financing is a 20-year second-lien fixed-rate loan from an organization known as a Certified Development Company (CDC). A CDC is an SBA-regulated, nonprofit organization with a mission to promote community economic development through the SBA 504 loan program. Each of the more than 260 CDCs nationwide covers a specific geographic area of operations, usually the state in which the CDC is incorporated. The SBA assumes the risk on the CDC’s second-lien loan through its guarantee. If the borrower defaults, the SBA will pay off the loan. Our hypothetical hotel buyer will secure a second-lien loan in the amount of $1.47 million from the CDC, guaranteed by the SBA.

• 15 percent: The final 15 percent is the down payment from the borrower. Most conventional loans require a 25 percent minimum down payment, so the borrower realizes significant cost savings with an SBA 504 loan. For our imagined borrower, the down payment will be $630,000.

• When a borrower is acquiring a branded hotel, the franchise typically requires a property improvement plan (PIP) that will bring a hotel into compliance with the brand’s latest standards, from design to energy efficiency. The SBA 504 loan will finance up to 85 percent of the acquisition cost plus PIP.

Recent changes in SBA 504 regulations

The past few years have seen the SBA increase its scrutiny of borrowers’ qualifications for the 504 program. While it used to overlook borrowers who were minority (less that 20 percent) stake partners, the SBA is now looking closely at them and the type of hotel ownership they hold. Formerly, when minority owners had too much SBA debt to qualify, they could hold a five percent stake, while the majority owners were said to be running the business. Today, they are no longer tucked away from SBA scrutiny—every borrower on a deal must have no more than $5 million in total outstanding SBA debt. A good SBA 504 lender with hotel experience will understand this requirement, and help you structure your deal to help avert any future problems with your partner borrowers down the road.

A fairly new SBA requirement is for borrowers to submit a feasibility study to ensure that market conditions support the potential future success of the hotel investment. The feasibility study is a report by a qualified third party that examines the local market, demographics, and other factors that are expected to affect the hotel property’s performance, such as an already overbuilt market.

After reviewing an SBA 504 loan package, an experienced SBA lender will ask the right questions, anticipate problems, and help the borrower overcome any potential roadblocks. This is why it’s so important to find the right lender. The experts at Liberty SBF have an extensive network of finance industry contacts. We specialize in helping guide both borrower and CDC though the loan process efficiently to ensure their successful SBA 504 loan.

Smart financing

The hospitality industry may be at a peak, as some predict, but Liberty SBF also believes there are still good assets to be found and when a borrower has identified one we are here to help them secure the deal with a low, fixed rate.

Contact Liberty SBF today. Email info@i.libertysbf.com or call (213) 297-5747.

You can also connect with Liberty SBF on LinkedIn

RECOMMENDED ARTICLES

Protect Your Bottom Line – Refinancing to a Fixed-Rate CRE Loan

Loan Interest Rates for Dummies (and the Rest of Us)

111111

News Roundup: What is the Latest Asset Class Affected by E-commerce?

Posted on March 11, 2019 by kunallibertysbf

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.

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.

Let’s Talk.

111111

Liberty SBF Closes $1.6MM SBA 504 Loan for Warehouse Acquisition in FL

Posted on March 4, 2019 by kunallibertysbf

A dent-and-scratch appliance supply company near Orlando, Florida recently acquired a 34K square foot warehouse with a $1.6MM SBA 504 loan from Liberty SBF. The deal closed within a very tight timeframe even allowing for a delay due to the government shutdown.

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. Florida Business Development Corporation partnered with Liberty SBF on the deal and will provide the government guaranteed second lien loan when the debenture funds. By purchasing this property, the business owner is saving money on monthly, rent improving cash flow.

How can we help?

Liberty SBF offers personal service for SBA 504, bridge and conventional loans. We’d love to help you.

Let’s Talk.

111111

News Roundup: Healthcare space tightens as population ages…

Posted on February 25, 2019 by kunallibertysbf

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.

Let’s Talk.

111111

News Roundup: Uber-izing self-storage…

Posted on February 11, 2019 by kunallibertysbf

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.

Let’s Talk.

111111

Protect Your Bottom Line – Refinancing to a Fixed-Rate CRE Loan

Posted on January 31, 2019 by kunallibertysbf

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.

Contact Liberty SBF today. Email info@i.libertysbf.com or call (213) 297-5747.

You can also connect with Liberty SBF on LinkedIn

111111

News Roundup: Self-storage & Warehouse in Focus

Posted on January 23, 2019 by kunallibertysbf

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.

Let’s Talk.

111111

News Roundup: Medical CRE & Added Value of Fixed-Rates

Posted on January 7, 2019 by kunallibertysbf

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.

Let’s Talk.

111111

News Roundup: CRE Trends That’ll Dominate 2019

Posted on December 15, 2018 by kunallibertysbf

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.

Let’s Talk.

111111

News Roundup: Why Inland Is the New Coastal

Posted on November 29, 2018 by kunallibertysbf

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

In the space of just one year, Liberty provided more than $12.4 million in financing for hotel properties in Las Vegas, Nevada, and St. Simons Island, Georgia.

How Much Longer Do We Have?

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.

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.

Let’s Talk.

111111

News Roundup: How Will Technology Change Commercial Real Estate?

Posted on November 21, 2018 by kunallibertysbf

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

Liberty has provided more than $32.8 million in SBA 504 loans for the acquisition of industrial properties and warehouses across the country.

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.

Let’s Talk.

111111

News Roundup: Red-Hot Industrial Market Not Threatened by Trade Wars

Posted on November 16, 2018 by kunallibertysbf

The Latest Commercial Real Estate News From Liberty SBF

Red-Hot Industrial Market Outpaces Aggressive Construction

Industrial construction is moving at a fast clip – and demand continues to outpace it. Globe Street reports that the national average vacancy rate has remained below 5% despite widespread new construction and inventory. Need financing for an industrial space? Give us a call at (855) 590-1174 or email info@localhost to talk to our experts.

Trade Wars Don’t Threaten Industrial Sector … Yet

Nationwide, year-over-year rent growth in the industrial sector hit 7.3% in Q3 – and in coastal markets like Oakland/East Bay, Sacramento and Long Island, rent growth was more than double that. Commercial Property Executive notes that record-high port volumes are likely a result of concerns over tariffs.

Liberty Finances Industrial Properties in Coastal California

Liberty has provided $14.1 million in SBA 504 loans for two industrial properties in San Diego, California.

A Brand-New World for Healthcare Real Estate

With the advent of digital technology and the introduction of medical concierges and telehealth, access to healthcare has changed dramatically in the last decade. At Bisnow’s recent National Healthcare East event, attendees discussed how healthcare real estate is adapting accordingly with a renewed focus on flexibility.

Liberty Finances Health Care Projects in 2018 for More Than $14 Million

With a $13 million SBA 504 loan for a skilled nursing facility in Tucson, Arizona, and a $1.2 million SBA 504 loan for a medical facility acquisition in Miami, Florida, Liberty has provided $14.2 million in healthcare project financing in 2018 alone.

Follow Strong Population Growth for Acquisition Targets

Florida, California, Texas, Arizona, Washington – according to National Real Estate Investor, these are some of the top states that people in the U.S. are moving to right now. Strong population growth is a good indicator of future acquisition opportunities, so we’ll be keeping an eye on these markets (and you should, too).

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.

Let’s Talk.

111111

News Roundup: A House (and Senate) Divided Will Probably Be Fine, Warehouse Markets With the Most Momentum & More

Posted on November 9, 2018 by kunallibertysbf

The Latest Commercial Real Estate News From Liberty SBF

The Government’s Divided, and That’s OK

Last Tuesday’s election has provided millions of hours of commentary from cable news anchors and their guests, but what did it mean for CRE? An article on Globe St. takes a look, and pulls out four key takeaways that can mostly be summed up as “we’ll probably be all right.”

Liberty Provides More Than $31 Million in Financing in the Northeast

Liberty SBF has provided over $31 million in SBA 504 financing for projects in the Northeast, including major projects in New Jersey, New York and Pennsylvania. A major driver of all those loans has been in the industrial sector. Read our article on what makes for a hot industrial market.

SBA 504 Program Funds Over $4.75 Billion in FY2018

The SBA announced its figures for FY2018 lending, revealing that the SBA 504 program provided nearly $5 billion in capital – in the form of 5,874 individual loans. The agency’s newly launched 25-year debenture is evidently popular, fueling more than 1,000 individual loans in under six months. What’s so great about this new loan? We’re glad you asked. Read what a 25-year term SBA 504 loan means for small businesses.

Sacramento CA, Dayton OH & Jacksonville FL Top List of Warehouse Markets With the Most Momentum

A recent report analyzed warehouse markets in the United States, in terms of three key growth factors, to identify the top growth markets in the sector. National Real Estate Investor turned that data into a slideshow, with 28 of the country’s fastest-growing warehouse markets.

Liberty Provides $30+ Million for Warehouse Projects

Liberty offers SBA 504 financing for small business warehouse acquisitions in all 50 states. Over the past three years, we’ve provided more than $30 million in financing for warehouse projects in New Jersey, California, Georgia and Pennsylvania alone!

Investors See Opportunity in Medical Space

In a recent piece, REIT analyst Richard Anderson breaks down what he sees as a common thread between strategies recently announced by three of the industry’s biggest players: a focus on medical office space. It’s no wonder when recent studies have shown that demand for this specialty real estate class is expected to quickly outstrip supply. Want to learn more about the enormous opportunity in the owner-occupied medical asset class? Read our latest article on the topic here.

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.

Let’s Talk.

111111

News Roundup: Politics & CRE, a Self-Storage Boom and Soaring Demand for Small-Business Lending

Posted on November 2, 2018 by kunallibertysbf

The Latest Commercial Real Estate News From Liberty SBF

Political Races for Commercial Real Estate Pros to Watch

As America heads to the ballot box tomorrow to decide the makeup of Congress for the next two years, Commercial Observer put together a list of races whose outcomes will have a direct effect on commercial real estate markets. Take a look, then keep a slightly more informed eye on results tomorrow evening.

Liberty Provides More than $14.2 Million in Health Care Financing in 2018

Recently, Liberty provided $1.2 million in financing for a medical facility in Miami, FL. That brings SBA 504 health care facility financing totals to over $14 million for 2018 alone.

Self-Storage Is Booming – and NOLA Is Leading the Way

The self-storage industry has outpaced the broader economy, growing 4.5% annually in recent years, and adding $4 billion in new storage spaces over the last year. And nowhere is that boom more obvious than in New Orleans, where more than 1 million sq. ft. of self-storage space is currently under construction.

REITs Outperform the Market

Ever-positive analysts have had to break out their euphemisms for stock market losses over the past few weeks, some even admitting that we may be seeing the early stages of a “correction.” But, despite that “volatility,” Bisnow reports that REITs have been outperforming the rest of the market, painting a positive picture for at least one sector.

Liberty Provides $23+ Million in Financing to Projects in California

Liberty is a nationwide provider of SBA 504 loans, but over the last two years, we’ve financed more than $23 million for projects in the state of California alone, including projects in Newport Beach, Imperial, San Diego and Riverside.

Small Business Lending Demand Up Significantly

The conclusion from the latest Thomson Reuters / PayNet Small Business Lending Index? Small businesses are doing well, and are under low financial stress. As a result, they’re investing in growth, driving demand for small business loans up 16% from last year.

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.

Let’s Talk.