Real Estate Financing Opportunities for 2022
We are in unchartered territory. The Wall St. Journal recently published an article showing increased probability of longer term Inflation, which could force the Fed’s Hand to raise Short Term Interest Rates. Many stocks will continue to be overvalued, and when the overvaluation meets economic downturn (which could be on the horizon because of debt and the increase of money supply over the last 20 months) who knows what will happen to the market? We expect Stock Market volatility. Real Estate would seem to be the beneficiary from Stock Market volatility as it is perceived a more stable investment vehicle in 2022. We expect real estate prices will likely continue to go up next year. Overall Uncertainty and Instability could continue with Covid still being an issue. Major Legislation (Build Back Better) could have significant impact on Taxation and Inflation – Sen. Joe Manchin is at the center of this and according to this WSJ article, if he believes Inflation is a threat, he could torpedo the Bill – Will Joe Manchin Stand His Ground on Inflation? - WSJ - Stay Tuned. Republicans likely to take back House of Representatives, which would effectively cause more Political Gridlock for last two years of Biden Presidency. The other unknown is What will happen in China? According to a recent Fortune Magazine article, the worst case scenario has the potential to push the world into a Recession.
Recently Closed Transactions:
$12.5M Refinance - Garden Style Affordable Multifamily – 2.95% fixed for 10 years, Interest Only for 5 years, 95 units, 60% LTV, Non-Recourse
$28M Acquisition Financing – SOFR + 2.25%, 75% of Acquisition Price, 7 year loan, Interest Only for 3 Yrs – 225,000 SF, 100% leased
For a more detailed list of transactions, Click Here