Whitepaper: Getting Your Property Financed
August 12, 2010 at 9:30 am | Posted in Whitepapers | 2 CommentsTags: acquisitions, asset, banks, capital, commercial, CRE, demand, economy, equity, financing, investment, investments, investors, liquidity, listings, market, opportunities, property, property values, real estate, recession, walt arnold, white paper
I rarely have a conversation these days where the topic of financing doesn’t arise as a serious concern for my clients. When the economy is robust, and the capital markets are frothy, financing a commercial real estate transaction is a relatively simple matter. However during today’s recessionary times, the commercial capital markets are severely constrained. Not only is the supply of capital tight, but the demand may be near all time highs as well. Depending on which industry source you quote there is between $150 and $200 billion dollars of CMBS debt maturing in 2009 alone. This figure doesn’t include maturing loans from insurance companies, banks and other lenders, which means that many borrowers will be forced to secure financing in a market that presently offers little liquidity.
Given the current lack of liquidity and financing options described above, only the savviest of sponsors with solid projects will be receiving attention from lenders and investors. In the text that follows I’ll provide you with an overview of the information you need to possess in order to speak fluent finance and to increase the odds of getting your project financed.
The first thing to keep in mind is that financing serves multiple purposes beyond rate and term considerations. The proper financing strategy can allow you to increase project velocity, improve operating efficiency, conserve internal capital, increase leverage, and lower the overall cost of capital. Good sponsors focus on developing an integrated capital formation strategy
Continue Reading Whitepaper: Getting Your Property Financed…
Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others
May 24, 2010 at 2:43 pm | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, BGK Group, capital, commercial, CRE, for lease, investment, investors, leased space, liquidity, listings, market, New Mexico, office, opportunities, radio show, real estate, retail, tenant, transactions, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 5-17-10! <<<
Bob Clark, News Radio 770 KKOB: Walt there was some news last week about BGK Group, can you give us some details?
Sure good morning Bob. BGK Group, which is the largest holder of commercial real estate in New Mexico with over 2 million square feet, was purchased by New York’s Rosemont Real Estate. Rosemont acquired a 51% controlling interest and will rename the company Rosemont Realty LLC. The headquarters will remain in Santa Fe.
The deal gives BGK a needed cash and management infusion. The sale also helps with a succession issue as BGK leader, Eddie Gilbert is 88 years old.
The New Mexico holdings include 19 Albuquerque office buildings, 6 properties in Santa Fe and one in Hobbs. BGK is Rosemont’s first major acquisition.
Bob: Walt, what’s going on with La Bella Spa at ABQ Uptown, are they back in there space?
Yes, that’s an interesting deal and a sign of the times when a tenant vacates a property over a year ago; the space remained vacant until La Bella worked out a deal with the Landlord to go back into ½ of their original space. The balance of the space will be leased to another retail tenant. This is a creative approach to solving a problem by both the tenant and landlord to fill some vacant space. Both Hunt Development and La Bella are happy to be back in ABQ Uptown.
Bob: What else do you have for us today? Continue Reading Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others…
Latest Video: Commercial Real Estate in 2010
February 26, 2010 at 5:01 pm | Posted in Videos | Leave a commentTags: asset, capital, commercial, CRE, investment, investments, liquidity, market, market report, property, property management, sperry van ness, Videos, walt arnold
What will happen in 2010 in commercial real estate? And, how should you navigate these waters? Watch this video.
Understanding the Acquisitions Process
February 26, 2010 at 4:38 pm | Posted in Whitepapers | Leave a commentTags: acquisitions, albuquerque, asset, capital, commercial, CRE, investments, liquidity, market, property, real estate, white paper
Here’s my latest white paper that aims to dispel some common myths and explain some of the ingredients needed for a successful aquisition…
One of the most important parts of the commercial real estate lifecycle is the acquisition phase. I believe most reasonable people would admit that the best way to have a successful outcome to any real estate venture is to get off on the right foot to begin with. While it’s certainly possible to “rescue” a troubled project, the best way to safeguard against a troubled scenario is to minimize future risk through the implementation of a sound acquisition plan. In the text that follows, I’ll offer some thoughts about some of the most common acquisition mistakes and how to avoid them.
Put simply, bad acquisitions are not healthy for financial sustainability. I’ve had the displeasure of watching lenders, investors, tenants and owners all suffer through the devastation and turmoil created by a bad acquisition. Whether it was due to lack of planning, leasing the wrong space, lending or investing in the wrong asset class or in the wrong market, getting whipsawed by buying into changing market conditions, paying too much for a property, or missing a critical window of opportunity, a bad acquisition usually spells trouble down the road. The sad part about what I’ve just described is that in most cases, these bad acquisitions could have been easily avoided by filtering them through a well conceived acquisition model. click below to continue reading>>>
Where are all the bank REOs?
January 25, 2010 at 11:49 am | Posted in Videos | Leave a commentTags: albuquerque, commercial, CRE, industrial, investment, investments, liquidity, market, New Mexico, office, property, real estate, sperry van ness, Videos, walt arnold
Check out our latest video…
Whitepaper: “Leveraging Your Company’s Real Estate To Access Untapped Liquidity”
January 2, 2010 at 11:35 am | Posted in Whitepapers | Leave a commentTags: albuquerque, asset, capital, commercial, industrial, investment, liquidity, market, New Mexico, office, property, real estate, sperry van ness
Here’s a whitepaper from a few months back.
Today’s tight capital and credit markets are forcing many corporations and small businesses to become creative in their search for liquidity to free-up suddenly constrained balance sheets. In turning over every stone in the hunt for liquidity, many entities simply overlook the value of their corporate real estate assets. When an operating business, no matter how large or small, finds itself in need of low cost capital their real estate assets should be evaluated as a source of readily accessible quality capital. Most corporations of any size and scale have investments in the land, buildings and facilities necessary for the successful operation of their business. While making corporate investments into real estate assets may seem to be a reasonable strategy at first glance, they are rarely investment or capital driven decisions, but rather… click below to continue reading>>>
Walt Arnold, SIOR, CCIM
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