The Real Deal New York

Jersey building boom forces builders to reach for financing

Lenders are demanding a higher portion of equity in development deals
By C.J. Hughes | June 10, 2016 01:24PM


As super-sized projects rise above the New Jersey skyline, developers are finding it tougher to lock down financing.

From the New Jersey Market Report: Developers hoping to get in on the boom rolling across Northern New Jersey may have a tougher go with lenders than they did a couple of years ago.

While the spigot for loans is still open, especially from balance-sheet organizations like banks and insurance companies, it’s gotten tougher in recent months to lock down financing, according to developers, real estate brokers and loan brokers.

Some industry insiders blame turmoil in the stock market — which can affect the value of securitized loans — for the retrenchment. [more]