March 5, 2024
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Posts in Featured Articles

Hines’ Quantum 56 Industrial Park Breaks Ground

The first phase at Quantum 56, a Class A, six-building, 868,360-square-foot industrial park situated west of I-25 on 56th Ave, developed by Hines, has broken ground. Phase I, featuring three buildings totaling 581,250 square feet of warehouse/manufacturing space, is set to be completed in Q2 2024.Quantum 56 is designed by Ware Malcomb and is being constructed by Arch-Con Corporation.Essex Financial Group secured the construction loan for Phase I. The loan was provided by one of Essex’s correspondent life insurance company relationships.Jason White, Mitchell Zatz, and Carmon Hicks of JLL will lead the leasing efforts on behalf of Hines. Essex’...

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Cast a Wider Net, Get Creative as Lenders Slow their Pace

We have reached the halfway point for 2023, and what a year it’s been … so far.The first six months of the year brought hasty interest rate hikes, confused capital markets, volatility industrywide, new lender underwriting parameters, and a lot of unanswered questions about the future. Yet, despite all these factors, lenders who were in the market and active (primarily life companies and agencies) found a way to get capital out the door efficiently, to get a head start on their annual allocations. We were seeing sales transactions move forward (albeit at lower levels compared to 2022) and had proactive borrowers getting ahead of pending maturities 12 to 24 months out, not knowi...

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Insurance Companies Provide Best Liquidity Today

The insurance companies are currently providing the best, most attractive liquidity for industrial real estate assets in today’s uncertain economic times. Period. Here’s why:Steady source of liquidity. Insurance companies reinvest monthly premiums from policy holders into several fixed- income assets. The investment target allocations for these policy premiums have historically been ~40% stocks, ~40% bonds, ~15% commercial real estate (mainly focused on direct commercial mortgage loans) and ~5% alternatives. Despite the lost liquidity within the commercial banks – due to a shrinking deposit base, lack of loan payoffs, and increased regulation – monthly premiums paid by insuran...

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Navigating Today’s Challenging Debt Market Can Be Complex

As seen in the Colorado Real Estate Journal May 3, 2023.The debt markets continue to get more challenging to navigate. Interest rate hikes and macroeconomic factors affect each lending source differently, resulting in an inefficient and confusing debt marketplace. This impacts the entirety of the industry, as debt is associated with almost every single commercial real estate property. The majority of commercial real estate professionals have other things to do during the week than keep tabs on the lending appetite and underwriting metrics for hundreds of lenders. Then there’s us. The lucky ones. Mortgage bankers.Here’s one mortgage banker’s perspective on what’s going on in th...

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