On the Upside…Lenders Showing Signs of Easing Requirements
Financing Terms for Borrowers Ease as Lenders Return
Apr 19, 2010 – CRE News
Lenders are returning to the commercial mortgage market, dropping their requirements for borrowers and their targets for returns along the way.
While trophy properties in major markets are seeing most of the increased lender interest, assets in secondary markets are also attracting stronger interest, according to mortgage intermediaries.
Traditional lenders, such as banks, life insurance companies and CMBS lenders, have increased by 5 percentage points the amount of leverage they’re willing to provide for properties to 60-70% for 10-year loans and by 10 percentage points to 65-70% for five-year loans, according to Cushman & Wakefield Sonnenblick Goldman.