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 can potentially be limited to below the typical maximum threshold of 80%. Last week we closed an 83% loan to cost acquisition small balance loan fixed for 12 years at 4.90%, which was 200 basis points over the 10-year Treasury at the time.
With the 10-year Treasury approaching 3%, the least expensive fixed rate money (insurance) will now be priced in the 4.30% range with LTV ratios limited at 70% or less for desire product types and locations. For all product types, spreads range from a low of 130 basis points to 250 basis points over the 10-year Treasury. Hard to fund deals (non-stabilized) private money will be priced from 8% to 12%.
LUNCH AND LEARN AT JACKSONVILLE MAGGIANO’S SEPTEMBER 26th, 11:45 AM TO 1:30 PM
You are invited if you are a real estate professional or investor interested in multifamily financing options and opportunities. Guest speaker features Freddie Mac small balance loan representative (loans up to $10 million). Other commercial real estate financing topics will be discussed as well as deal structure trends and opportunities. Seating is limited, so register soon.
If you are in the Jacksonville area on the 26th and would like to attend register at:
www.trillium-capital.com
Regards,
Scott Taccati
President
Trillium Capital Resources
706-615-3030
www.trillium-capital.com
www.smallbalanceapartmentloans.com
www.hudapartmentloans.com
