Bailout Loan for Multi Family Unit in Ohio

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Bailout Loan for Multi Family Unit in Ohio

Century Capital Partners, a New Jersey asset-based lending company is funding a bailout loan in Defiance, Ohio.  Our clients multi-family 16 unit apartment building was in possible foreclosure. Century Capital's loan has enabled the owner to pay his debt, renovate and build two more apartment buildings with four new units in each.

 

Let Century Capital help you close on your next investment.

Contact us for a FREE Loan Evaluation: 877.335.5464, info@centurycapitalfinance.com

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Saving Your Real Estate Property with a Century Capital Bridge Loan

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Saving Your Real Estate Property with a Century Capital Bridge Loan

By Sylvia K Delin

As an entrepreneur, you always have options.  Business generally carries with it a roller-coaster ride of financial successes and monetary declines.  One option open to the Real Estate owner is a hard money loan during a downturn.  

Quick Provision of Funds

Anyone who has applied for a bank loan in a financial emergency has a clear understanding that time is not of the essence for banks.  By contrast, Century Capital has a solid focus on your immediate needs and your actual timeframe.  We work with each client to timely provide necessary funding, allowing for a smooth and uninterrupted business flow.

Flexibility

The parameters of each lending transaction involve a specific set of circumstances.  Therefore, Century Capital provides negotiable loan terms that match your current Real Estate investment needs.  Our flexibility covers primary concerns such as repayment schedules and the reduction or elimination of funding and other fees.    

Collateral

The basis for loan approval is not your credit rating.  Instead, the value of your Real Estate collateral determines the existence and amount of your loan.  While the specific business property usually constitutes the collateral for funds provided, you may wish to use alternate Real Estate assets as security for a hard money loan.  

Accessibility

Do you have an immediate need to save your Real Estate property?  Is there a Real Estate investment opportunity that could be lost without timely acquisition?  Have building renovation costs accumulated beyond your budget?  The best response to each of these situations may be a bridge loan or Hard Money Loan to secure your enterprise, close on a good investment or complete the repairs/construction of your building.  

Hard money loans cut the red tape that banks put you through, providing a quick conversion from application to closing to meet the needs of your investment.  Century Capital aims to provide you with the financial tools necessary for the success of your Real Estate venture.

Contact us for a FREE Loan Evaluation: 877.335.5464, info@centurycapitalfinance.com

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Hard Money Loan - the Best Solution

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Hard Money Loan - the Best Solution

By Sylvia K Delin

Comercial Real Estate: Are you facing a possible foreclosure on your real estate investment?  It does not have to happen.  Your viable alternative to undergoing the trauma of a foreclosure is a hard money loan.

Reasoning Behind Hard Money Loans

Often referred to as a bridge loan, a hard money loan can be used beneficially in many real property situations:  

  • Holding onto your assets – Real estate acquisition, development and construction can be effectuated through a short-term loan, without the necessity of utilizing your personal or corporate assets.

  • Purchasing real property in the absence of a showing of creditworthiness – The determination for granting a hard money loan is based on the value of the property, rather than the credit history of the borrower.  You can expect that the estimated After Repair Value (ARV) will be used as the factor evaluating your property.  The real estate you are purchasing acts as collateral for the loan.

  • Preventing a foreclosure – When a quick payment is essential in order to save your real estate investment from foreclosure, and you do not have sufficient cash on hand to cover that payment, a short-term hard money loan is a way to prevent the foreclosure from occurring.

  • Taking advantage of a good real estate deal – An immediately-available advantageous real property investment can be yours through a hard money loan, even if you do not have the ready cash needed to close.  As to obtaining a mortgage, given the parameters of the Dodd-Frank Act, a mortgage loan may take months to acquire, often preventing you from capitalizing on a profitable real estate purchase.

Higher Rates/Shorter Repayment Period

When researching a short-term loan, be sure to focus on interest rate, fees and repayment period.  Expect to pay a higher rate of interest, along with increased fees and closing costs.  However, due to the short-term nature of hard money loans, the total amount of interest that you will pay on your bridge loan will be less than the interest paid on a conventional mortgage.

Be sure to have a clear understanding of the turnover time as to the expected receipt of profit, either in terms of a sale of the developed real estate or regarding the commencement of income produced by the property.  Your goal is to experience an optimum Return on Investment (ROI).  

Commercial Real Estate (CRE)

Commercial real estate is comprised of income-producing property, such as apartment buildings, malls and office complexes.  Amortized loans requiring equal installment payments over a period of time, define the repayment plans in mortgages and hard money loans.

Bridge loans on commercial real estate typically cover a short period such as five years, and are based on a 30-year amortization timeframe.  At the conclusion of the hard money loan period, a balloon payment is required.  This is the reason that it is important for you to correctly estimate the time within which your real property will become profitable.  A short-term loan through an independent lender, affords the flexibility to coordinate the loan period with the expected time of initial profit.

Options

Hard money loans present a viable option for financing your real estate investments.  Timely loans are available through private lenders such as Century Capital to prevent the hazard of foreclosures, as well as facilitate the direct purchase of real property.

Contact Century Capital for a FREE Loan Evaluation: 877.335.5464, info@centurycapitalfinance.com

 

 

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    How Bridge Loans Help Make Investments Happen

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How Bridge Loans Help Make Investments Happen

By Devorah Benarroch

A bridge loan is a type of short-term loan typically taken out for a period of 6 months to 3 years depending on the arrangement of larger or longer-term financing optionsA bridge loan is interim financing for a business until the next stage of financing can be qualifiedMoney from the new financing is generally used to pay back the bridge loan. 

Bridge loans are typically more expensive than conventional financing, in order to compensate for the additional risk. Bridge loans typically also have a higher interest ratethey use points also known as fees, (1 point equals 1% of loan amount)and other costs that are amortized over a shorter period of time. Bridge loans are mostly sought after because they are typically arranged very quickly with relatively basic documentation. 

Within a two-week period, a bridge loan lender like Century Capital Partners can examine a deal, analyze the properties involved, qualify the buyer, and close on the loan. The company charges fees plus interest. Some lenders will look to private investors who can provide the capital in exchange for the interest. Depending on the type of loan, investors can be paid interest in a lump sum when their principal is returned at the end of the loan term, or they can receive regular monthly payments. 

Bridge loans and other hard money loans can be a fast way to investment when there is no time for the banking process in order to secure an immediate business transaction. Previously, these loans were offered by mortgage brokerages and even some banks for years, but now it's shifted to private individuals to “be the bank” in helping qualified borrowers. The key is finding a reliable private lender like Century Capital Partners to guide you through the process.  

Century Capital’s bridge loan services offer commercial real estate investors the opportunity to leverage short-term financing benefits without compromising their long-term ROI, making your property’s financial transition seamless. 

Note: Bridge loans can even be paid back early with no prepayment penalty; plus all points are paid at closing.  

Contact Century Capital Partners for a FREE Loan Evaluation: 877.335.5464, info@centurycapitalfinance.com

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We Make Loans That Banks Don't

By Devorah Benarroch

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When it comes to the comparison between conventional bank loans and hard money loans, some might wonder why people would even consider interim financing. Hard money loans are typically short-term loans with higher interest rates and upfront fees, in fact, the opposite of conventional loans. However, hard money loans do have an important place in the real estate market. When traditional financing options are not available, utilizing a short-term hard money loan, a lender like Century Capital Partners may be the best choice to fund a borrower’s quick investment opportunity.

Here are some situations where obtaining a commercial real estate hard money loan makes sense:

1. Construction

A property owner who is also a developer might be considering to build a ground-up project. Although there are many lenders who offer construction financing, each one has their particular niche and lending guidelines. A borrower’s construction experience, credit rating, project presentation, timeline, equity in the project, and financial reserves are some of the factors a traditional lender considers in their evaluation of the loan. Shortfall found in any one, or a combination of these factors, can cause a bank to decline a construction loan application.

Hard money lenders also consider these factors when evaluating a real estate construction project, but the value they put on them can be significantly different. Many times a conventional lender will deny an application if anything is outside their lending parameters; on the flip side, hard money lenders like Century Capital Partners are often willing to explore compensating factors a developer brings to the table.

Furthermore, when it comes to construction projects, bank lenders may place a cap of sixty, seventy, or eighty percent loan-to-costs. In contrast, some hard money lenders who specialize in development projects are known to offer one hundred percent financing (and sometimes more) for attractive projects. Companies offering hard money loans for construction projects are able to modify loan terms that fit a borrower’s needs. As noted, hard money lenders typically charge higher upfront costs and interest rates for their loans. But if a developer’s ROI requirements and profit margin are met, it can be in their best interest to accept the costs of this loan and forgo the risk of using their own funds.

2. Low Credit Rating

Par for the course, conventional lenders rely heavily on the credit worthiness of a borrower in their loan evaluation  whereas a borrower lands on the credit scale, which determines the availability of funds, loan terms, and their cost of borrowing.

Conventional lenders make loans, but are restricted by industry guidelines. A borrower’s credit is the cornerstone of a bank’s decision-making process.

Late payments, tax liens, mechanic liens, collection accounts, high debt levels, bankruptcies and foreclosures are all situations that can be credit score killers and reasons for banks to decline a loan application.

Hard money loans are not restricted to the same lending guidelines. Lenders like Century Capital Partners set their own standards regarding the level of risk they accept and how they evaluate an application. Certain alternative lenders (asset-based evaluators) can take any level of credit history. A borrower having bad credit or no credit can still obtain real estate financing through a hard money lender.

3. Stabilizing Property

A real estate investor may need time to stabilize an under-performing property they own.  This is a very common situation with commercial real estate properties.

Conventional lenders tend to stay away from providing financing for properties that are performing below market efficiency. The income a property brings may be low or the expenses can be high, relative to the income. These situations would fall outside a bank’s lending comfort zone.

The good news is these are perfect situations to use a hard money loan. There are hard money lenders like Century Capital that focus primarily on the value of the underlying property and don’t take into consideration a borrower’s personal financials or the property financials. With bridge financing, a real estate investor can obtain a loan in order to have time to improve a property’s standing by filling vacancies, increasing rents, and finding other ways to lower expenses.

Once the property is stable, the investor can utilize a conventional lender for the permanent financing.

Hard money loans are not cheap money, but many times they play a necessary role in continuing the movement of the real estate market. When conventional lending is unavailable, optional hard money sources like Century Capital Partners fill a need that is well worth the investment for the purpose it serves.

Contact Century Capital Partners for a FREE Loan Evaluation: 877.335.5464, info@centurycapitalfinance.com

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Character Opens Doors

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Character Opens Doors

Reliable borrowers find good deals, even when banks are skittish.  Article by: Steve Belleville, director of sales and marketing, Redwood Mortgage

No matter how creditworthy, small-capital mortgage customers tend to feel the squeeze between tighter bank-lending standards and the significant financing expenses of many private lenders. There is a middle ground for qualified small-cap borrowers, and originators can profit by guiding their clients to it.

Commercial real estate lending is clearly not a one-size-fits-all business, and one slice is decidedly underserved as a result of recent and continuing market trends: the middle-market bridge loan.

Banks and institutions are lending as they always have to large core clients in real estate, but they are challenged in meeting the midsize-to-small real estate investor’s growing demands. Meanwhile, at the other end of the spectrum, the private-loan industry has a strong track record of helping investors with special needs outside traditional-lending parameters, but their products are often short-term loans at double-digit interest rates.

Market forces, as a result, are creating a surge of real estate investors who are best described as being “in between.”

Midmarket niche

The borrowers in need of middle-market financing — usually owners of commercial and multifamily assets valued at between $500,000 and $7 million — can meet many, if not most, of a traditional institution’s underwriting requirements. They seem to fall short, however, in getting approvals at that level.

When they turn to private lenders, they are well-qualified, if not overqualified, for a loan and expect, erroneously, to get better than the typical interest rates on hard money.

 Banks and institutions are lending as they always have to
large core clients in real estate, but they are challenged in meeting
the midsize-to-small real estate investor’s growing demands. 

Among other things, these borrowers’ chances of finding affordable financing are affected by the $230 billion in loans supporting commercial mortgage-backed securities (CMBS) that are maturing over the next two years — as estimated by Trepp LLC. Office and retail CMBS loans account for about two-thirds of that figure, according to Trepp, and multifamily represents the next largest category of maturing CMBS loans.

Not only does this huge CMBS volume coming due mean more borrowers are asking their banks, brokers or private-lenders for a financing solution, but it also increases the banks’ loan-servicing obligations. Those institutions, quite logically, will be more responsive to their long-term clients and well-positioned new ones, than to small-cap borrowers and their less profitable loans.

In today’s post-recession banking environment, regulators have increased the scrutiny, criteria and reporting requirements for most lending. That has increased the workload for many traditional institutions across the same amount of ordinary loan volume. As a result, banks simply are unable to meet the financing needs of every type of lending customer.

Bank staffing and underwriting capacity are under pressure. For a middle-market borrower, there’s often a special situation or unique circumstance that goes with the loan, and institutions are less inclined or less able to listen to the “story” behind a borrower’s loan application. In addition, some institutions simply have cut back on staffing and the volume of funds available. That has a compounding negative effect on small-to-midsize loans or special-circumstance borrowers.

Loan terms and scenarios

Terms offered by private lenders specializing in middle-market bridge-loan products vary from company to company, but there is a range that brokers and their clients can expect when they seek alternatives to bank financing. Typically, they will be offered loan-to-value ratios of 65 percent or lower, interest rates in the mid-to-high single digits, a loan term of one to three years, no prepayment penalty and a flexible capital structure.

Owner/investors can use middle-market bridge loans as an accelerated exit strategy in which a prepayment penalty would be onerous. It’s increasingly common for real estate investors to find out, too late, that the lending climate has changed for their traditional financing sources. That’s a common realization among owners facing CMBS maturities who want to take advantage of improved market conditions to reposition their assets to higher and better uses, but have not worked with their lending institutions in quite some time.

Those borrowers find that under current market conditions, what they once considered normal underwriting and turnaround times are no longer available. By turning to private lenders that specialize in small-cap borrowers with good credit, they can often work out interim financing — a two-year loan, for instance, at a single-digit interest rate with no prepayment penalty — which solves their near-term capital crunch and provides breathing room for repositioning.

The same type of lenders can be useful to investors looking to restructure the debt on multiple properties in a portfolio, a not-uncommon desire among owners of diverse holdings in retail, industrial and office buildings.

Owners of multitenant properties, for instance, often need refinance loans, but also have plans to change the use of the properties in the future. A long-term commercial loan with a traditional prepayment penalty will not meet that borrower’s needs because of the plans to change gears on the overall site within a year or two. Again, with some shopping around, borrowers can arrange shorter-term private loans at single-digit rates, with no prepayment penalties.

 Again, with some shopping around, borrowers can arrange shorter-term
private loans at single-digit rates, with no prepayment penalties. 

Owners of multiple properties also can use those assets to find affordable loans to finance a partner buyout. The health of one asset is often strong enough to provide financing for the partner or partners seeking to exit multiple-property investments, although such deals seldom fit banks’ lending criteria.

•  •  • 

Many creditworthy borrowers don’t even know they are in the new gap between unresponsive banks and expensive hard money lenders until they go to their traditional lenders and hit a roadblock. The traditional institution may have the best of intentions of trying to arrange a loan, but regulatory requirements get in the way.

These small-cap borrowers also may find that the pool of bank capital has all but dried up through increased demand, increased capital-ratio requirements and greater loss-reserve mandates. For originators and borrowers, it is worthwhile to look for private lenders interested in — and capable of — providing complex underwriting at attractive rates with the flexibility of a private loan.

Want to stay on top of mortgage, real estate investment news and trends? Bookmark this page for the latest business developments. 

Questions? Contact Victor Cohen at 877-227-4060 or info@centurycapitalfinance.com

Article found on: http://www.scotsmanguide.com/

 

 

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Five New York real estate experts share their market predictions, from Crain's.

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Five New York real estate experts share their market predictions, from Crain's.

Crain's chats with Colliers International's Michael Cohen, Newmark Grubb Knight Frank's Barry Gosin, Cushman & Wakefield's Ron Lo Russo, Jones Lang LaSalle's Peter Riguardi and CBRE's Peter Turchin, by Erik Ipsen 

What impact will rising interest rates have on real estate?

Michael Cohen (President, tristate region Colliers International): I don't think that the initial 25-basis-point rise in interest rates by the Federal Reserve will materially affect decision-making. Values won't tumble. Borrowers won't start defaulting. I'm more interested in how soon the next increase will occur, and where rates will be in the next 12 to 18 months. A 100-basis-point increase in a short-ish period would have a material impact, as it is not yet built into the market.

Barry Gosin (Chief executive, Newmark Grubb Knight Frank): Buyers who were doing due diligence late last year probably assumed a small rate increase was around the corner; it was already part of their formulas. Some investors may choose to be more selective with purchases, however. Rising rates generally burden developers more than buyers, given the cost of capital and the higher loan-to-value ratio needed to fund construction projects.

Ron Lo Russo (President, tristate region, Cushman & Wakefield): The consensus is that if rates are rising for the right reasons (stronger economy), then net operating income (rent) growth can offset the impact of upward cap-rate pressures. That said, my opinion is that cap rates will rise, and prices will flatten and could even fall slightly. But I don't envision a tumble, given the weight of capital currently in the market.

Peter Riguardi (President, tristate region, Jones Lang LaSalle):  Manhattan buildings are being acquired at very low capitalization rates, with sellers projecting robust increases in rents. Any movement in the interest rate, even a half point to 2 points, will affect investors' analyses. But given the overwhelming amount of investor demand and the lack of supply, this type of interest-rate increase will not be enough to put the brakes on New York City's extremely active and competitive sales market.

Peter Turchin (Vice chairman, CBRE ): The equity markets had already “baked in” the effect of the Fed’s move last month, in all probability reducing its impact. Similarly, sophisticated commercial real estate investors have been looking at this issue for quite a while—and have no doubt produced game plans to reduce the risks involved and find a way forward without too much disruption. Owners of well-managed properties don’t have a lot to worry about because good managers know how to plan.

Will more commercial tenants turn to Brooklyn based on its costs, proximity to staff and "cool factor"?

Cohen: Brooklyn remains a niche market, although with broad appeal, particularly among firms in the TAMI sector. Large commercial options in Brooklyn used to be largely limited to MetroTech and Dumbo. Now TAMI demand has given rise to several new submarkets, some of which would have been unthinkable just a few years ago. We've seen some extraordinary and creative redevelopments taking place.

Gosin: Brooklyn has many opportunities to offer tenants. From the Navy Yard and Williamsburg to Industry City and Dumbo Heights, it has options for all. More and more tenants will be open to moving out of Manhattan and taking advantage of the millions of square feet of space currently being redeveloped in Brooklyn. Proximity to Brooklyn-based staff is a key selling point for small companies. We are confident enough in the Brooklyn market to have opened an office in the borough last year.

Lo Russo: Over the past three years, its labor force has grown by almost 12%, the biggest gain in the city. Brooklyn's demographic change over the past 15 years has been dramatic, as almost 20% of the population is made up of millennials, drawn to areas they can work and live. This, coupled with an average vacancy of 5% over the past eight quarters, has led to more than 6 million square feet of potential office development and conversions over the next three to five years.

Riguardi: Brooklyn has excellent prospects, as does Long Island City. But there has to be enough good product. There are some interesting projects, including JEMB's ground-up office tower at 420 Albee Square, and the converted Jehovah's Witnesses portfolio being spearheaded by Kushner Cos. These will definitely add to the "cool factor," but what Brooklyn and LIC need is a big-time, bellwether name that surprises the market with its decision to relocate from Manhattan. Just like Google energized the meatpacking district.

Turchin: There are definitely tenants looking for rent relief from the hot midtown south market. Not only has it reached record pricing, but each submarket within it has hit historical highs. Many tenants are looking not only to Brooklyn, but also Jersey City, Long Island City and the Bronx. Brooklyn is leading the charge, however. Many developers--some that wouldn't have looked at Brooklyn a decade ago--are spending real money to upgrade properties from manufacturing and warehouse uses to offices.

Will growing TAMI firms (tech, advertising, media, information) offset weakness among financial tenants?

Cohen: TAMI and financial firms consume space very differently, in different parts of the city, in different densities and quantities. TAMI is more focused on midtown south. Those firms tend to occupy prewar buildings and have a higher density than FIRE (financial, insurance and real estate) sector tenants. Meanwhile, we have seen stirrings of financial-sector growth, but not the 100,000-square-foot-plus expansions of previous cycles. There are only a handful of TAMI firms that can expand that quickly.

Gosin: TAMI companies have helped absorb much of the availability in the downtown market and have taken space in some of the non-Plaza-district, non-trophy midtown buildings. While TAMI offers substantial upside for growth, questions remain about these companies leasing space in institutional-quality properties in prime midtown corridors.

Lo Russo: Although TAMI companies leased the most space in Manhattan from 2011 to 2015--accounting for 27% of all new leasing--last year the financial-services sector bounced back. It reclaimed the top spot for new leases and accounted for almost 30% of the activity. With that sector hiring again in the city--adding over 25,000 jobs in the past two years--we are optimistic that coupled with continued growth in the TAMI sector, it will drive the market forward in 2016.

Riguardi: We are seeing some positive signs of continued TAMI growth, but tech companies in particular need to continue to add program engineering jobs to take up the slack in the market as the financial-services sector cuts back. Many financial tenants are gravitating to newly constructed buildings, and they are also using less space as they become more efficient and reduce their footprint in the city. So we need tech companies to be the growth engine to make sure the market continues to thrive.

Turchin: I wouldn't say that there's weakness among financial tenants. While larger institutions have been fairly stagnant, I see a lot of growth in midsize and smaller financial firms. For example, in two Class A buildings that I represent, we've started prebuilt programs--and 90% of the space is being leased to hedge funds. That said, the increase in financial tenants is not as strong as the gains in the TAMI sector.

With availability low, will more landlords raise rents?

Cohen: This is clearly true for office properties in most pockets of Manhattan, with shrinking availability rates and rising rents. But beware: This is not necessarily true for all asset classes. Many people are wondering if retail rents have reached their peak and if that market is already correcting.

Gosin: It bodes especially well for owners of midtown south buildings, where leases signed well before the big rent spike of recent years are expiring. But landlords of average midtown buildings might think twice, as they can expect increased competition with an anticipated escalation of availability. Large blocks are expected to come to market from tenants who are leaving traditional submarkets behind to relocate to the far West Side and lower Manhattan.

Lo Russo: The shrinking of available supply does put New York City in a landlords' market. Asking rents have reached historic highs in midtown south, mostly due to the lack of quality supply and an increase in demand. Downtown asking rents are also at an all-time high, but this is due to the addition of the World Trade Center to the market. Midtown asking rents are still 10% to 12% off the 2008 peak, but as availability tightens, pricing will go higher this year.

Riguardi: Buildings in terrific locations with great space will be in demand as companies look for sites that protect employee retention and recruitment. But raising rents is not a universal option. Some areas are threatened by the large availabilities projected for midtown, and many industries continue to reduce square footage per employee. There is also the potential for a recession in 2017 or 2018. Landlords would be smart to make deals now to avoid vacancies in the next few years, and it would be foolish to raise their rents now.

Turchin: Emphatically yes, but the real issue is where availability is relative to equilibrium. When availability goes to 14% from 16%, rents barely move. But when it dips to 8% from 10%, they fly. We've seen this in midtown south, a true landlords' market, where the market is below equilibrium and where barring significant additions to inventory, there's no reason why rents won't continue to rise. Meanwhile, in midtown and downtown the market is hovering right above equilibrium, so if availability continues to fall, rents could spike.

What impact will Mayor Bill de Blasio have in the second half of his first term?

Cohen: Mayor de Blasio's impact is largely on the residential sector, particularly the changes he's making to real estate tax-abatement programs. The most important thing he can do for commercial real estate is to see through the rezoning of the midtown core and support the modernization of the city's infrastructure.

Gosin: I expect some of his affordable-housing deals and initiatives will be put into practice. His actions haven't affected residential development because of how well the market has performed, but his influence may cause less development in certain areas if we experience a market or economic slowdown.

Lo Russo: The mayor has supported commercial development, and we see no reason to expect a change. One of the most important policy initiatives for the commercial real estate industry in the next two years will be East Side rezoning. The mayor has made proposals that would permit creation of larger buildings through the sale of air rights owned by landmarked buildings. The city would receive a transfer tax on the air rights that would be used for public improvements. This could lead to new development in the area.

Riguardi: I hope the mayor has come to understand that having companies feel comfortable about doing business in New York City requires a thriving commercial real estate sector. Creating that level of comfort leads to job growth. At the beginning of his term, Mayor de Blasio may not have seen that, but I think that he must now recognize the connectivity of the commercial real estate market and the growth of the city.

Turchin: The two biggest issues facing the de Blasio administration are midtown east rezoning, and transportation to growing areas, including ferry service to less-connected areas of Brooklyn, such as the Navy Yard, Red Hook and Sunset Park. With the center of gravity shifting--driven by development on the West Side and the popularity of the Brooklyn market--transportation needs to be readdressed to accommodate these new dynamics.

Will economic weakness in China, Brazil and Europe augur poorly for foreign purchases of New York City property?

Cohen: It sure doesn't look that way, although you can never be sure what's coming. So far we haven't seen any diminution in foreign investor interest due to overseas economic turmoil. There are good arguments that the opposite is true--that overseas turmoil stokes demand for New York City assets for flight capital.

Gosin: It may encourage more investment, as real estate in the United States offers higher and more sustainable returns than what is being offered overseas. China may be the exception, as capital is subject to considerable state controls--and in times of domestic weakness, they may seek to be held more within Chinese boundaries.

Lo Russo: Foreign capital flows accelerated from 10% of buyers on average to 20% in 2015, and to more than 35% in gateway markets such as New York. This acceleration comes despite global economic softness, oil in the low $40s a barrel and a China slowdown. This is because as global headwinds continue, the U.S. is a mature market with some of the strongest growth prospects. New York has become the "Treasury bond" of the global real estate market.

Riguardi: Large foreign institutions and wealthy foreign individuals overwhelmingly see New York City as a great market for all types of real estate. They are extremely comfortable here and feel it is a safe place to invest their capital long-term. Of course, any economic weakness will impact the flow of capital here, but with such a large number of potential buyers and a continued lack of supply, the trend of foreign investment in the city still has room to continue.

Turchin: One of the great things about New York is that it attracts capital from all over the world. Time and time again we've seen that as one capital source diminishes, another quickly replaces it. In the '80s we saw capital investment from Japan; in the 2000s it was Europe and Canada; and since 2010 it has been China and the Middle East. The key is that New York City needs to remain a safe and stable investment for foreign capital.

Want to stay on top of mortgage, real estate investment news and trends? Bookmark this page for the latest business developments. 

Questions? Contact Victor Cohen at 877-227-4060 or info@centurycapitalfinance.com


A version of this article appears in the January 18, 2016, print issue of Crain's New YorkBusiness.  www.crainsnewyork.com/article/20160120/REAL_ESTATE/160119851/five-new-york-real-estate-experts-share-their-market-predictions

 

 

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Century Capital Closes on $4,700,000 Loan in Brooklyn’s Historic Chinatown

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Century Capital Closes on $4,700,000 Loan in Brooklyn’s Historic Chinatown

Asset-based lender Century Capital closes on a $4,700,000 Loan on a 26 room hotel in the heart of Brooklyn’s Historic Chinatown.

1108 60th Street is the hottest new location in Brooklyn, with a multi-million dollar hotel project underway. Thanks to Century Capital’s $4.7 million loan, developer Mr. Bao Zhi Liu’s New Hotel will enhance both the Jewish area of Boro Park and Brooklyn’s historic Chinatown. Sandwiched between both communities, the New Hotel will bring more life to the Hong Kong Supermarkets, Asian nail shops, religious and cultural centers, and other Chinese- and Jewish-owned enterprises dotting the streets of eclectic Brooklyn.

Brooklyn’s Chinatown which runs along 8th Avenue between 42nd and 68th Streets, is preparing to see a 26-room hotel appear in the middle of all the action. The finished hotel will be within close walking distance to the nearest NYC subway stops along the D and N lines as well as Maimonides Medical Center.

There are currently no other hotels in the vicinity of 60th Street and the New Hotel plans to accommodate many tourists, friends, and family visiting the borough. With more than 34,000 residents and counting, Brooklyn’s main Chinatown has surpassed Manhattan’s Chinatown and paves the path for other satellite Chinatowns which have been popping up over the years throughout Brooklyn, Queens, and beyond.

Mr. Bao Zhi Liu intends to construct a state-of-the-art spa inside the hotel for guests and visitors. He has 18 years of real estate development under his belt including extensive experience with renovation, construction, and management of both residential and commercial properties. He has an impeccable professional reputation and Century Capital is pleased to be doing business with him and his colleagues.

Century Capital is a New Jersey asset-based lender specializing in unique and creative lending solutions. Construction and hard money loans range from $500,000 - $15,000,000 and Century Capital always protects brokers’ rights. Contact us if you would like to inquire about a lending or investing opportunity.


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Century Capital helps provide homes to Tennessee families

Memphis, Tenn. – Century Capital closed on a $1.56 million loan for a 179-unit apartment complex that had an extensive waiting list and a short construction deadline.

The New Jersey-based hard-lending agency was able to offer a financing package with a quick turnaround for the developers, who specialize in apartment complexes in Memphis, which is one of the largest rental markets in the country. The apartment building had a waiting list of 17 families at the time of closing.

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Century Capital makes quick turnaround on New Jersey learning center

Westwood, N.J. – Century Capital Partners closed quickly on a loan for a building that houses an early learning center.

It took less than two weeks for the New Jersey-based private lender to close a $1,650,000 commercial real-estate loan for a building that is home to one of the Rainbow Academy Centers. The property is centrally located in Westwood, N.J. It is near a shopping center that boasts Marshall’s and Stop & Shop as its retail anchors.

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Century Capital loans $2 million to save Brooklyn foreclosure

Brooklyn, N.Y. – Century Capital made news in 2013 with a fine example of bridge lending that halted the displacement of 12 local families and a popular delicatessen. The New Jersey-based, hard-lending agency made a $2,040,000 commercial real-estate loan to the owners of two properties at Hoyt and 80thstreets in the heart of Brooklyn. The properties faced foreclosure after the landlord had fallen into default with Emigrant Bank. The building owner struggled to meet the requirements of conventional lending, with the 24 percent default rates going beyond his reach. He approached Century Capital for private financing. The partnership was an honor to both parties, and a saving grace to the Brooklyn properties.

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Central Cleanup

Century Capital Partners has closed on a construction loan that will finance the renovation and polishing of a run-down multi-use building in a prime location in East Orange, New Jersey.

The New Jersey-based, hard-money lender has closed on a $1.2 million construction loan for 70 City Hall Plaza, a three-story apartment and retail rental. The building is a prime location for a commercial real-estate investment, situated next door to the Borough Hall, across the street from a train station and near East Orange’s primary shopping district.

This is Century Capital’s second asset-based loan to property owner Meir Hillel for renovations to 70 City Plaza. The loan will allow for completion of the construction at this location. Already, the cleanup has been a significant urban renewal project. A restaurant and a childcare facility are in negotiations to rent the ground-floor retail spaces.

Century Capital is proud to back a project that will promote East Orange, said David Hecht, Century Capital President.

Ongoing work at 70 City Plaza is a real-time example of Century Capital’s success as a private, nontraditional lender. Century Capital serves clients who seek creative financing solutions for construction and real-estate projects that are viable, but do not necessarily meet the tight restrictions and tall hurdles present in today’s conventional lending realm.

Century Capital facilitates commercial lending domestically and globally, with projects stretching from Puerto Rico to Sicily; Florida to California.

Century Capital works closely with clients, emphasizing innovation and efficiency. To learn more about Century Capital Partners, please visit www.centurycapllc.com, call 877-335-5464, ext. 101, or emaildavid@centurycapllc.com.

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