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COVID Impact on Multi-Family Loans and Transactions

Recent underwriting changes at the Agencies has resulted in additional cash requirement on all multi-family deals.You can expect the following as a result of these changes: BAD NEWS1.  Multifamily transactions under $6 million will specifically be more...

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Financing Market VOLATILE; FLOORS EVERYWHERE

Financing Market VOLATILE; FLOORS EVERYWHERE

The chart above represents the 10-year Treasury for the last 90 days.  The corona virus has essentially created a serious shock to all markets.  The reality is at it relates to commercial real estate lending rates, generally have floors.  Only HUD loans...

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INCREASING COSTS ON NEW ACQUISITIONS

INCREASING COSTS ON NEW ACQUISITIONS

TCR was recently interviewed by the industry recognized Crittenden publication for multifamily housing finance outlook. Primary concerns were new acquisitions where real estate taxes and insurance costs increasing from historical levels. Our interest rate outlook was...

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FNMA Freddie Mac Update

NEW FNMA AND FREDDIE MAC BUDGETS WILL RESULT IN LOWER SPREADS/RATES STARTING IN OCTOBERAs we have reported the FNMA/Freddie Mac spreads have been way out of whack and WIDE for the last few months.  The new budget announcements starting next month will likely...

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Rate Update on Bond Program

Rate Update on Bond Program

This funding Program is not Agency Debt.  This bond program allows for Insurance Level Rates with more leverage.  Current Rate Levels Below.  6-, 9- and 12-Month Forwards available. Fixed Rate (10 years): Below is a general guideline of lower rates...

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March Update

March Update

It is incredible, isn’t it? Regardless of who provides your financing, please be aware commercial real estate loan rates are now getting back to very attractive levels. Spreads are now starting to decline and potentially keep pace with the decline in the 10 YR...

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Spreads

Happy New Year: Just a quick note. We received a great quote from one of our non-agency multi-family lenders that is very attractive and rivals the agency pricing as well as insurance finance terms for commercial real estate. These are GREAT RATES: $10M or Less: 170...

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CRE LOAN PREPAYMENT DECISIONS

CRE LOAN PREPAYMENT DECISIONS

YIELD MAINTENANCE VERSUS STEP DOWN  The decision between a step-down prepayment and a Yield Maintenance prepayment option is one that operators and borrowers should not take lightly. Your Exit strategy will be the key determination on what you should choose....

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The 10 Year Treasury….

The 10 Year Treasury….

Back below 3!!! 2018 Treasury MovementAs you can see from this chart, the 10-year Treasury has finally maintained a level below 3% for the first time in months.  This is obviously good for long-term borrowing rates.  The yield curve is now pretty flat, which generally...

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Market Update and Lunch

Good morning, here is a quick summary of interest rate levels:10 Year Treasury has increased to the 2.96% range over the last week but has not penetrated the 3% level.  Rates are still attractive, but the cost of money is impacting equity requirements as LTV ratios...

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Current Lending Cycle for August

Here are 3 Quick things that you may find helpful regarding the current multifamily lending cycle.  1. Investors are heading back into the treasury market for safety, keeping it well below 3.0%.  If you are close to locking a rate on any commercial real estate loan,...

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PlainJaneEmail

Thought You might be interested to know:1. Freddie Mac recently announced Targeted Affordable Housing Express Program.  This Program has Streamlined Costs.  Eligible properties should be stabilized, with a loan of $10 million or less, and have at least...

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The 10 Year Treasury….

The 10 Year Treasury….

The foundation of long-term mortgage rates Last year the 10-year treasury enjoyed lower levels.  CRE rates for long term money at that time ranged generally from 3.75% to 4.50%, depending on product type and LTV ratio.  This year, as you can see from the...

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Multifamily Expenses- “Don’t Be Light”

Brent ShryockCommercial Real Estate FinancingNon-Recourse Loans $1 - $50M Some Commercial borrowers, especially in multifamily real estate, make some mistakes when estimating the size of a loan for their property. They are light on several areas when underwriting the...

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FINANCIAL MARKET UPDATE

FINANCIAL MARKET UPDATE

As of today, overall spreads over the 10-year Treasury are still quite tight!  There is no spread for swaps, as the 10-year swap actually equals the 10 Year.  CMBS pricing is off of the swap.  Here is a summary of spreads for 10 Year pricing and...

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A VERY NASTY CHART CONSIDERATIONS AHEAD ARE REAL

A VERY NASTY CHART CONSIDERATIONS AHEAD ARE REAL

I hate to say it, but it appears the low-rate party is over for the time being.  To all who successfully placed long term debt in 2016 prior to the election, CONGRATULATIONS.  Now it is time to meander through various considerations for 2017. The chart above...

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CRE Financing Hot Topic of the Week Nov 30

CRE Financing Hot Topic of the Week Nov 30

FINANCIAL HOT TOPIC OF THE WEEK: CONTINUED INTEREST RATE MOVEMENT AND SPREAD STABILIZATION PREADS CONTINUE TO MAINTAIN THOUGH 10 YEAR RANGE IS NOW 2.30 TO 2.39  The 10 Year Treasury, the benchmark of commercial real estate financing, jumped today 8 basis points,...

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IMPORTANT INSIGHTFUL INFORMATION!!!

IMPORTANT INSIGHTFUL INFORMATION!!!

REAL ESTATE CYCLE UPDATESPREADS CONTINUE TO MAINTAIN THOUGH 10 YEAR IS AT 2.32% The chart above is the Mueller Market Cycle, which as indicated is on a national level.  You will see the apartment market is leading the charge and is at the peak of the...

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IMPORTANT TIP OF THE WEEK

IMPORTANT TIP OF THE WEEK

10 YEAR TREASURY APPEARS TO HAVE SUBSIDED RAPID ASCENT, SPREADS ARE HOLDING STEADY To everyone's surprise, the 10 Year rapidly increased after the election.  The overall spreads are roughly the same as before the election.  For FHA pricing, prior to the election...

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TCR REPORT 

SEPTEMBER 2016 FINANCING UPDATE RATES ARE AS GOOD AS THEY HAVE BEEN IN A LONG TIME!!!!!!!! FHA multifamily rates, FNMA, Freddie Mac and Insurance rates have finally broken through the 4.0% threshold. All in FHA is as low as 3.50% fixed for 35 years with 60 basis point...

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News Article

Scott Taccati enjoys the art of the deal in real estate finance. Here is a recent article regarding Scott Taccati and Trillium Capital Resources published in the Columbus Ledger. Scott Taccati knows his numbers, having spent more than 25 years in the very structured...

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TCR REPORT 

1st QUARTER CRE FINANCING UPDATE Good Morning........We recently were part of a panel discussion at the Atlanta RealShare Conference.  Our findings and discussion centered on the debt market, which is in overall good shape.  Delinquencies are rather limited,...

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Interest Rates and Spreads

Interest Rates and Spreads

As we head towards the end of 3rd Quarter 2015, across all lending platforms we have experienced a widening in investor spreads for the past several months.   The chart below shows this relationship as it relates to HUD Multifamily Interest Rate Spreads. As you...

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THE TCR REPORT

THE TCR REPORT

June/July 2015 Edition Since the last newsletter Treasuries have increased as well as spreads. FNMA/Freddie Mac spreads are high due to the GSE spread set by these agencies, which is a result of busting through production targets set forth for these agencies.CMBS and...

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TCR REPORT

APRIL/MAY NEWSLETTER ADDENDUM ON DEBT YIELD I want to further explain debt yield ratios and how they impact pricing.  In the earlier email this morning, I stated that the lower the debt yield, the better.  This was a TYPO error.  The higher the debt...

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TCR REPORT 

APRIL/MAY CRE FINANCING MARKET UPDATE The year as rapidly passing by (like all years seem to do as we get older) and the financing market is taking interesting turns and twists:1.  FNMA/Freddie Mac Multifamily spreads are widening (about 215-220 basis points over...

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TCR REPORT

FEBRUARY CRE FINANCING MARKET UPDATE Over the last 30 days we have seen a wild swing in rates.  There are many borrowers who always consider delaying the refinance and locking in a rate at a later date.  In real estate, ANY well positioned deal should work...

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THE TCR REPORT

JANUARY 2015 The year is opening up very well for the commercial real estate financing market. Treasury rates have dropped significantly since December. Rest assured this level of interest rates WAS NOT expected by anyone. We have attended several conferences that...

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Merry Christmas and Happy Holidays from TCR!!!

2014 has been a great year for commercial real estate financing. We are grateful to all of our clients and future clients as well. We have seen interest rates begin the year at much higher levels, with the 10-year Treasury around 3% in January to 2.12% as of today....

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Happy Thanksgiving!

Happy Thanksgiving!

May the blessings of life be yours in abundance at Thanksgiving and throughout the coming year. The Trillium Capital Resources Family wishes you and yours a very Happy Thanksgiving!

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TCR Report October 2014

TCR Report October 2014

Overall, Treasuries have been volatile but on a steady descent over the last couple of weeks, brought on by international crises as well as lackluster economic data from NFP, though GDP was strong. Generally, spreads have held steady, except for GNMA rates (HUD) which...

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TCR Report September 2014

We will be attending a CRE lenders conference arranged by Crittenden Research next week, which will provide much insight on activity and trends in the CRE financing arena. If you have a deal for immediate consideration, please contact us as these conferences are deal...

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The TCR Report: August 2014

NON-RECOURSE FIXED RATE FINANCING IS ABUNDANT!!! A lot of activity abounds in the financing markets. Over the past couple of months, we have seen spreads for GNMA securities (HUD financing) drop to as low as 90 basis points over the 10 Year Treasury to the present...

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TCR’s Eye on The CRE Debt Market

June Financing Market & Trading Desk Commentary Before getting to the financing market dynamics, Trillium Capital Resources is pleased to welcome Brent Shryock to the Jacksonville team, who will join Mike Blevins, Senior Vice President. Brent will be Vice...

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May Financing Market & Trading Desk Commentary

The financing market for commercial real estate is officially back for all product types and lenders. We strive to procure the BEST financing available based on our clients’ objectives, thus we continuously track what is going on in the commercial real estate...

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February Newsletter

February Financing Market & Trading Desk Commentary By Scott Taccati We began the year basically at the peak levels of interest rates for all of 2013. The month of January resulted in a dramatic decrease in Treasury yields and a further decrease in GNMA spreads....

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January Newsletter

January Financing Market & Trading Desk Commentary By Scott TaccatiHappy New Year from Trillium Capital Resources!  2013 was an exciting year and we are definitely looking forward to another successful year in 2014.Overall 2013 will be remembered as...

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December Newsletter

December Financing Market & Trading Desk Commentary By Scott Taccati The continued improvement in overall yields late last month has essentially reversed itself due to the continued TAPER TALK likelihood (as released in the FOMC minutes) and improving economic...

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November Newsletter

November Financing Market & Trading Desk Commentary By Scott Taccati Continued improvement has occurred with overall yields in October, and FINALLY spreads for HUD multifamily product has finally begun to tighten after 4 + months of widening. As of this writing...

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October Newsletter

October Financing Market & Trading Desk Commentary By Scott TaccatiThe credit markets eased back on rates after the Fed announced the $85 billion per month in tapering would continue due to overall economic weakness.  This was great news from the perspective of...

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September Newsletter

September Financing Market & Trading Desk Commentary By Scott Taccati Overall Treasuries seem to have finally stopped its ascent to Lord knows where during the last month. As of this writing, 10 Year Treasury rates are now at 2.75%. Recently quoted HUD multifamily...

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August Newsletter

August Financing Market Commentary By Scott Taccati The Federal Reserve's words and continued actions do not seem to calm the markets since the infamous spike in rates that went up on the long side of borrowing rates a couple of months ago. Interest rates are...

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TCR Newsletter July 2013

July Financing Market Commentary By Scott Taccati Remember the popular 60’s song Spinning Wheels? What goes up, must come down was the lyrics I recall. Unfortunately, that has not been the case in June. After the Fed Chairman spoke in mid-June hinting about the...

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TCR Newsletter June 2013

Financing Market Commentary By Scott Taccati Wild swings of interest rates, spreads and Multifamily Mortgage-Backed security pricing took place in May. We had seen the GNMA securities price at levels that yielded rates just below 3% in the month of May with spreads...

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TCR Newsletter April 2013

Financing Market Commentary By Scott Taccati Current pricing for multifamily mortgage-backed securities indicates demand has fallen off significantly this year when compared to the exuberance that was prevalent in last year’s market for these securities. Spreads have...

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