Firms still conservative on commercial lending, panelists say

TRD New York /
Oct.October 21, 2009 10:04 AM

Commercial lending is continuing at a conservative pace amid concerns about the ongoing housing crisis, panel members said at yesterday’s National Realty Club luncheon, discussing current mortgage financing and joint venture opportunities. Melissa Farrell, managing director at Prudential Mortgage Capital Company, which last year originated $7.7 billion in mortgages, said her company is “actually looking to do more lending,” not less, but at the same time, it’s become more conservative in waiting around for just the right transactions. Stable cash flows and minimal income interruptions can boost a potential borrower’s chances, she said, though those looking to acquire strip malls or hotels may be out of luck. George Klett, chair of the commercial real estate committee at Signature Bank, agreed. As far as strip malls go, he said, Signature wouldn’t finance them. “I don’t know anyone who is doing that right now,” he said. Signature is doing office and other retail transactions on a conservative basis, as well. “We are concerned about the economy, and also about unemployment,” Klett said. Despite the tenuous state of commercial lending, however, the group also expressed optimism about the future. On the foreign investments front, Simon Ziff, president of Ackman-Ziff Real Estate Group, argued that the weak dollar is bringing foreign investors in, not discouraging them, and said he’ll be watching that market very closely in the coming months. And overall, said Dave Karson, managing director at Cushman & Wakefield Sonnenblick Goldman, “I think and hope we are close to the bottom in capital markets velocity.” TRD


Related Articles

arrow_forward_ios
The analysis predicts that office vacancies across the world will continue upward (iStock)

Report: Office market won’t return to glory until 2025

Report: Office market won’t return to glory until 2025
Cushman & Wakefield CEO Brett White and Industrious CEO Jamie Hodari (Industrious; Cushman)

Cushman partners with Industrious in bid to bring the office back

Cushman partners with Industrious in bid to bring the office back
Cushman & Wakefield’s Brett White

Cushman & Wakefield reports $101M quarterly loss

Cushman & Wakefield reports $101M quarterly loss
IBM CEO Arvind Krishna

IBM narrows search for big Manhattan office

IBM narrows search for big Manhattan office
(iStock)

Look out below: Major real estate services firms brace for falling earnings

Look out below: Major real estate services firms brace for falling earnings
Signature Bank CEO Joseph DePaolo (Getty, iStock)

Signature Bank “pleasantly surprised” by multifamily rent collections

Signature Bank “pleasantly surprised” by multifamily rent collections
Shawn Mobley (left), is being replaced by Andrew McDonald (right) as CEO of the Americas at Cushman

Shakeup at Cushman: Mobley out, McDonald promoted

Shakeup at Cushman: Mobley out, McDonald promoted
Rich Barton, Howard Lorber, Jay Hennick, Brett White

Real estate firms are raising billions in debt and equity. Here’s why

Real estate firms are raising billions in debt and equity. Here’s why
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...