capital markets

It is getting harder for New York’s mid-market office owners with maturing debt to line up new loans.

The manager is looking across sectors and deal types for new business activity.

Even with a more predictable lending environment, CARROLL is still expecting to see a disconnect between buyers and sellers – partly driven by the availability of debt and rates – through the end of the year.

The program was rebooted earlier this year to raise the minimum threshold for investment. 

The financing was arranged by Lotus Capital Partners on behalf of the sponsors, Miami-based manager Gencom and New York-based Mohari Hospitality.

The market will have to adjust to negative leverage by either having cap rates go up or investors willing to take a lower return.

Two metrics are better than one, with market participants telling us DSCR is being commonly used alongside debt yield in evaluating lending opportunities.  

The firm continues to have good access to financing, albeit more expensive levels than in the past.

Rising mortgage rates and housing prices, along with new household formation, has meant demand for affordable rental housing has surged.

RSM, Deloitte, Duval & Stachenfeld pros detail lending conditions and cautions moving into Q4.