Guide to Business Credit Scores
Business credit scores can have a dramatic impact on the availability and cost of financing, and any impact is only magnified for commercial property financing where investors need to borrow large sums. For investors, developers and managers, understanding the role of a company’s financial score is essential.
What is a Business Credit Score?
The purpose of a business financial score is to help various … Read More
Net Operating Income (NOI) & How To Calculate It
Real estate investors need information. The more information they have, the better the decisions they can make. There are a lot of tools to provide this information, but one of the most important is net operating income (NOI). Understanding what this calculation is and how to use it can help investors make decisions quickly regarding any property an investor is considering.
What Is Net Operating … Read More
Debt Service Coverage Ratio for Real Estate
The debt service coverage ratio (DSCR) offers a key but often misunderstood tool for all commercial real estate financing parties. For instance, investors may use this formula to adjust offers, track performance, calculate profit margins, and determine when they should obtain financing or seek to refinance. In contrast, lenders employ the figure during underwriting to decide if the property earns enough income … Read More
What Are Cap Rates in Commercial Real Estate?
Cap Rate for Commercial Real Estate
Capitalization rates calculate the expected annual return on investment that commercial real estate properties will generate. Cap rates can show investors how much they might expect to receive from a particular property, and thereby provide a metric for evaluating the property.
Cap rates are often looked at by lenders when financing commercial property, this is one … Read More
What is Debt Yield and How Does it Apply in Commercial Real Estate
Debt yield hasn’t traditionally been a primary commercial real estate loan underwriting metric, but more lenders are incorporating it into their criteria. In the current real estate market, measuring debt yield ratios provides lenders with a stable assessment regardless of unusual or changing conditions.
What is Debt Yield?
Debt yield is a standardized way to measure net operating income (NOI) against total … Read More
COMMLOAN ARRANGES A $21.7M LOAN AT L+1.75% FOR REPEAT BORROWER
Properties:
Six industrial properties located throughout the Houston, San Antonio, and Midland MSAs.
Opportunity:
CommLoan won the assignment to exclusively place the debt for a $27 million portfolio acquisition on behalf of a repeat borrower, although several capital providers were also competing for the business.
Solution:
CommLoan’s extensive lending relationships resulted in the private wealth channels of several large banks competing for … Read More
Federal Reserve’s Reaction to Inflation, Unemployment, and Effect on Interest Rates
Major highlights from last week’s Federal Reserve call include 1) Inflation is currently at 5%, which is above the Fed’s traditional 2% target; 2) The Federal Reserve is looking to pull back some of the quantitative easing it has deployed since the start of COVID; and 3) Before any plans to increase interest rates, the Federal Reserve will be looking to taper off government … Read More
CommLoan secures 80% LTC bridge-to-perm rehab loan for student housing-to-multifamily conversion
Property
Student Housing in Waco, TX
Opportunity
CommLoan represented out-of-state investor syndication whose general partners’ prior experience was limited to high-end residential construction. Through extensive market research, the Sponsors from California identified a well-located property with large floor plates in Waco, TX consisting of 50% student housing and 50% traditional rentals, listed at a below-market price. The business plan includes … Read More
CommLoan Secures a 2 Year, 1.83% Acquisition Loan on Industrial Portfolio in Midland, Texas
Property:
Industrial Portfolio in Midland, Texas
Opportunity:
CommLoan was approached by an ultra-high net worth investor with expertise in the oil and gas industry to obtain an acquisition loan collateralized by a fully occupied portfolio of seven single-tenant industrial properties in Midland, Texas.
Solution:
CommLoan’s extensive lending relationships resulted in the private wealth channels of several large banks competing … Read More
CommLoan Helps Investor Secure Financing For 3 Industrial Buildings in Arizona and Texas Through 1031 Exchange
Properties:
Industrial in Phoenix, Arizona, and Dallas, Texas
Opportunity:
CommLoan was approached by an experienced real estate investor and repeat borrower looking to obtain acquisition loans on three industrial properties in Texas and Arizona. The investor had 10MM in a 1031 exchange and was looking to place the equity into 4 prospective Upleg’s within a limited timeline.
Solution:
CommLoan … Read More