So Where's Financing Coming From, Anyway?
Buyers like WRIT have to finance these deals, don't they? (WRIT assumed a mortgage on the Army Navy Club purchase.) Cassidy Turley's Brad Geiger tells us most of what he and partner Phil Mudd have lined up are life company loans in addition to bank financing, and he says to expect the trend to continue. On the other side of the transaction, Brad tells us that some of his borrower clients have become more willing to accept pre-payment penalties on loans to lock in 10-to-20 year fixed-rate financing.
CBRE's David Webb (right, with colleague Jamie Butler) says banks and CMBS "are all hungry to get money out this year" in addition to life companies, and will particularly be craving moderate-to-low-risk deals. David also tells us that a lot of equity sources are diving into the mezz debt fray on higher-leverage deals, where "very low, single-digit rates" are available.
