Hilco Real Estate Finance’s Post

A lot happening in the commercial real estate sector right now: - 2024 Loan Modifications, spearheaded by CRE CLO, are set to exceed the record set in 2023. - Yesterday, 1,294 new properties were included in the Distress Alerts from CRED iQ®. - The distress rate for CRE CLOs jumped over 100 bps in May to 9.74%... it was only 1.5% just a year ago. #CRE #CommercialRealEstate #Finance #MarketTrends

📰𝟐𝟏𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐒𝐚𝐯𝐞𝐬 𝐂𝐥𝐢𝐞𝐧𝐭𝐬 £𝟑𝟎𝐤 𝐀𝐮𝐜𝐭𝐢𝐨𝐧 𝐃𝐞𝐩𝐨𝐬𝐢𝐭 𝐢𝐧 𝐉𝐮𝐬𝐭 𝟒 𝐃𝐚𝐲𝐬. Specialist Finance Broker, 21finance, has successfully placed and completed a £270,000 auction bridging loan having received the enquiry just a week before the client was going to lose their 10% auction deposit. Nick Hepburn, 𝐒𝐩𝐞𝐜𝐢𝐚𝐥𝐢𝐬𝐭 𝐁𝐫𝐨𝐤𝐞𝐫 𝐚𝐭 𝟐𝟏𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐞𝐝: “We were delighted to have completed this loan so quickly and to have saved the borrower’s deposit. We always look for creative solutions, however insurmountable the problem seems. In addition, we forge close relationships with all the third parties we work with and in this case, it was key to getting a full valuation done inside 3 days.” 𝐓𝐡𝐞 𝐛𝐨𝐫𝐫𝐨𝐰𝐞𝐫 𝐜𝐨𝐦𝐦𝐞𝐧𝐭𝐞𝐝: “As soon as I spoke with Nick at 21Finance, I knew I was in safe hands. He kept me informed every step of the way, found solutions to the problems I faced, ensured my purchase completed and saved my deposit. I will certainly look to work with Nick, Nikhita and the rest of the team on my next purchase.” ➡️Read the full story here: https://lnkd.in/dbWusE9X #LUFC #LeedsUnited #Leeds #LeedsBusiness #Yorkshire #YorkshireBusiness #FinancialServices #Finance #FinanceBroker #BridgingLoan #CaseStudy Narinder Khattoare Natalie Moreno Davina Patel

As we close off 2024 and Roel Capital's second year of operations, this year has been one of both challenges and opportunities. Across the market, brokers, bankers and our clients have each faced headwinds associated with: (i)                 Higher cost of capital resulting in capitalisation rate expansion and LVR pressure; (ii)                Interest and debt service cover pressures on investment assets and secured loans; (iii)              Higher cost of construction and development financing eroding feasibility returns and project viability; (iv)              Higher office and retail vacancy rates; and (v)                Bank serviceability buffers, higher interest rates and cost of living pressures impacting consumer buying power in residential property. Notwithstanding the headwinds, we have delivered another year of fantastic results. I’m super proud of the settlement volume and breadth of transactions we’ve secured for our clients and lenders. To summarise the highlights: (i)                 Anthony Nocon joining the team in February and settling $36m in loans in his first 9 months with the business. What a professional. (ii)                Driving outstanding outcomes for our clients, whether it be increased leverage, sharper pricing, looser collateral / covenants, diversifying financier counterparty risks, freeing up their time, or a combination of all the above. (iii)              Building trust and advocacy with our lender partners, delivering quality submissions and superior outcomes for our clients. (iv)              Pivoting from leveraged finance, highly structured home lending and mid-market corporate finance to deliver tailored solutions for our clients, whatever their circumstances. (v)                Witnessing the continued growth of Versatile Group as a force in the property and construction sector. We wish all of our clients, lenders and referral partners a safe and happy festive season and we look forward to hitting the ground running in 2025! #mortgagebroking #financebroking #propertyfinance #realestate #commercialfinance #acquisitionfinance #interestrates This is general information only and has been prepared without considering your objectives, financial situation or needs.   It does not constitute legal, tax, investment or financial advice and you should always seek professional advice in relation to your individual circumstances.   Roël Capital Pty Ltd, Credit Representative 544729 is authorised under Australian Credit Licence 389328

📌Quick, I need more deals… . 📌After yesterday’s post, of exiting 3 deals in two weeks, it’s clear I must need more deals, well - maybe, maybe not - this is what we’ve got going on, currently. . 📌Flatwest - The Bank - stripped out, ready to go. Waiting on development loan to complete to get motoring. 📌Coffee Shop - we’ve agreed with the tenant for surrender of the uppers and once that lease is signed, we’ll begin pre-construction phase. 📌Sidcup - we’ve got two options on neighbouring plots on the table here. One is agreed ready to be signed (vendors away), the other is awaiting a pension fund to appoint solicitors (slow, as usual). 📌River - in planning for a PiP. Somewhere near 50 objections now from Nimby’s who don’t have a clue what a PiP is (understandably). Decision date around 2 weeks away. . 📌Honestly, It’s quite nice only having one project in build phase, and my partner running that. Gives me more time to find the next one(s)…

On December 10th, Kyle Nagy had the opportunity to teach a Continuing Education class to the amazing brokers at LOGIC Commercial Real Estate. The session covered the fundamentals of commercial real estate finance, incorporating real-world examples from loans we’ve closed. The group’s participation and thoughtful questions contributed to an engaging and productive discussion. If interested in having Kyle come speak with your brokerage team and earn CE credits at the same time, please let us know.  #CommercialRealEstate #CREFinance #ContinuingEducation #RealEstateBrokers #ProfessionalDevelopment #CREKnowledge

Owners who hand commercial properties back to lenders may face an unexpected “double whammy” of financial consequences, including capital gains taxes and significant tax liabilities. “At the end of the day, if you have a negative capital account and if you give back the keys, you’re going to have a tax hit for that negative investment,” explains Robert Gilman, Partner, and Real Estate Group Leader at Anchin. In this #AnchinAlert, he dives into insights shared in Bisnow on how market revaluation and negative capital accounts can impact borrowers who return properties amid steep value declines. https://lnkd.in/e6FvxFg9

📰Trepp, Inc. Chief Product Officer, Lonnie Hendry was interviewed by Therese Fitzgerald (Commercial Property Executive) yesterday at the CRE Finance Council Annual Conference in New York, dissecting the current distress in the CRE market... "Trepp’s May 2024 Delinquency Report was actually favorable, with CMBS delinquencies inching down to 4.97%. Even office, which had peaked at 7.38% in April, was down to 6.94% in May", said Hendry. "The market is performing better than the headlines would suggest, but there is a lot of distress that just hasn’t made it through the system yet. The CMBS market has about $30 billion of office loans maturing throughout the remainder of 2024 and a lot of those loans have very low debt yields in place, very low DSCRs and low occupancies relative to stabilized norms." Read the full write up here: https://hubs.li/Q02BnZsw0 #Trepp #CREFCJune2024 #CREFinanceCouncil #CREFC #CRE #CommercialRealEstate #CMBS #Conference #CREEvent #CREConference #CommercialPropertyExecutive #Office

  iBorrow’s CEO, Brian Good, recently shared his insights with Real Estate Capital USA on the state of capital markets this year, and the increased flow to non-traditional financing.   What happens next in terms of transaction activity will be largely dependent on the Federal Reserve, market participants say.   “If there was any doubt that finance drives real estate, you can put that to rest. About 90 to 95 percent of deals have a loan on them and there are not many all-cash buyers,” says Brian Good. Liquidity remains patchy, he adds, noting that banks – are generally not lending. “The only lenders active are commercial mortgage-backed securities lenders on specific cash flowing assets for high-quality deals, and private lenders. If there was any doubt that private lenders are here to stay, that is out of the window now. It was an industry that 10 to 15 years ago wasn’t part of the market, but we are now seeing institutional borrowers come to private lenders for the first time,” Good says.   Read the full article here: https://lnkd.in/d4tjsb_R #CommercialRealEstate #CapitalMarkets #Finance #CommercialLending #Borrowers #PrivateLenders #FederalReserve

Rising Demand for Pawnbrokers Reflects Changing Financial Landscape in the UK: Economic pressures and flexible lending solutions drive a surge in the UK’s pawnbroking industry United Kingdom – The demand for pawnbrokers in the UK has seen a significant increase, reflecting the growing financial pressures individuals and businesses face. As inflation … Continue reading → #Finance #FinancialMarket #ProfessionalServices #ShoppingDeal #UK

Do not ignore this headline. Many multifamily properties remain fundamentally sound, but some, particularly those financed through CLO loans, are facing significant over-leverage. Rent growth alone will not be sufficient to counter high interest rates and increasing operating costs in these cases. CLO borrowers are currently grappling with the decision of whether to purchase interest rate caps as stipulated in their loan agreements, considering the potential sunk costs involved. To navigate these challenging times effectively, it is advisable to engage a CLO loan advisor who can collaborate with your attorney. Negotiating with your CLO servicer involves intricate legal and tax considerations. Brighton Capital Advisors specializes in CLO workouts and can assist in devising a workout plan advantageous to the Borrower. Remember, Knowledge is Power. In these uncertain times, staying prepared and proactive is key. Good intel CRED iQ® Access = Success Contact a BCA Advisor for more information Michael D. Cohen Alison Coen Richard Fischel Tina McNeill #RealEstate #Finance #CLO #Investment #PropertyManagement #BrightonCapitalAdvisors