Financing for Office Portfolio blew up
Large office portfolio I am selling just had the CMBS Lender back out. We are thinking about going local or a bridge loan. Anyone else had financing fall through for deals under contract let me know your creative solutions or share your stories.
[{"id": "flkalsb", "text": "On a conference call yesterday there was mention of life insurance companies, local/regional banks and credit unions still quoting loans. Hope that helps!  Keep marching forward soldier!", "replies": [], "depth": 1}, {"id": "flknj5k", "text": "Citigroup?", "replies": [{"id": "flko74t", "text": "They have come up regarding another deal we are chasing. Why do you mention them?", "replies": [{"id": "flkrp9g", "text": "They\u2019ve shut down CMBS", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "flkqjpk", "text": "DM me, which port? Am a CMBS lender and have an idea which it is.", "replies": [], "depth": 1}, {"id": "flllbwx", "text": "Spoke to a few lenders today and shit is hitting fan. My hard money guy is only offering bridge and 1 to 4 for fix and flip. He normally offers MF and conversion programs.  My traditional guy is only doing government backed loans with a credit score of 700 and a min 10% down.  They both said lending is little to non existing right now. It started Friday and hit the fan yesterday.  I had a private money guy on 26 units that backed out this morning.  Scrambling now to find someone to do the deal", "replies": [], "depth": 1}, {"id": "fllvghp", "text": "Yeah CMBS is not happening now. Everyone is pulling back on credit and pricing is way out as corp bond spreads are wide. I am a lender for a large lifeco / debt fund and there are very few shops quoting new business this week. The traditional debt funds are getting squeezed by margin calls from their line lenders and anyone relying on securitization is out. Bridge pricing that was L+275 a month ago is now L+550 or higher. The market should settle and pricing will come in over time but it is painful out there right now. \n\nWe are looking at / quoting some CMBS drops but we are significantly lower leverage and cheapest 10yr pricing today is over 4.00%.", "replies": [{"id": "fllwypo", "text": "10year term or am?", "replies": [{"id": "fln3oj8", "text": "Term. 30yr AM.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fllxurp", "text": "CMBS is dead because the secondary market spreads blew up. See the market summary here:\n[https://www.slatt.com/lender-segment-market-update](https://www.slatt.com/lender-segment-market-update/)\n\nI was quoting a purchase loan on an office property that fell apart last week when the buyer cancelled. Most of the lenders quoting that deal were raising rates or stepping out of the market entirely.\n\nThat said, I had a lender offering 3.75% for a 5-year fixed rate despite most other lenders moving into the high 4s. Keep turning over rocks and you'll find a lender. That or hire a broker whose job it is to do so.\n\nAll else fails or the property isn't stabilized, look for private money. Expensive but not terrible if you need a year or two.", "replies": [], "depth": 1}, {"id": "flm12e5", "text": "Some lenders are turning off the spigot, some are throttling down, and some are still lending. So it depends who you are talking to!\n\nYou should probably talk to a capital advisor if you need to quickly find the lenders who still have money flowing.", "replies": [], "depth": 1}, {"id": "flniy9w", "text": "Life insurance is still active", "replies": [], "depth": 1}]