The largest independent commercial mortgage banking firm in the western US says it is on course to top $2 billion in loan originations for 2017
The largest independent commercial mortgage banking firm in the western US says it is on course to top $2 billion in loan originations for 2017.
Newmark says that its third quarter originations totaled $726 million from 80 transactions, bringing the total to date to $1.795 billion.
The third quarter saw strong activity in multifamily, office, retail and self-storage with Newmark’s Phoenix, San Francisco and Los Angeles offices posting the highest transaction volumes.
“Commercial mortgage lending continues to be healthy in 2017, with rates remaining at historic lows compared to the projected increases anticipated earlier this year,” said Robert Slatt, principal with Newmark.
“Notably, over the past 12 months, we have seen a steady amount of construction to permanent financing placed with our correspondent lenders,” Slatt continued. “These lenders are replacing banks as a primary source for construction capital due to new High Volatility Commercial Real Estate rules limiting banks in this arena. These loans spread the risk of new construction over extended terms, ensuring new projects can still secure debt at the reasonable rates no longer available from traditional banks.”
Newmark reports that office assets have shown strong interest from lenders looking to place commitments in the western markets during the third quarter of 2017.
Retail remains the most challenged sector but still showed interest from those lenders most familiar with the sector while those least experienced pulled back.
Newmark says that its third quarter originations totaled $726 million from 80 transactions, bringing the total to date to $1.795 billion.
The third quarter saw strong activity in multifamily, office, retail and self-storage with Newmark’s Phoenix, San Francisco and Los Angeles offices posting the highest transaction volumes.
“Commercial mortgage lending continues to be healthy in 2017, with rates remaining at historic lows compared to the projected increases anticipated earlier this year,” said Robert Slatt, principal with Newmark.
“Notably, over the past 12 months, we have seen a steady amount of construction to permanent financing placed with our correspondent lenders,” Slatt continued. “These lenders are replacing banks as a primary source for construction capital due to new High Volatility Commercial Real Estate rules limiting banks in this arena. These loans spread the risk of new construction over extended terms, ensuring new projects can still secure debt at the reasonable rates no longer available from traditional banks.”
Newmark reports that office assets have shown strong interest from lenders looking to place commitments in the western markets during the third quarter of 2017.
Retail remains the most challenged sector but still showed interest from those lenders most familiar with the sector while those least experienced pulled back.
