Western Capital Newsletter July 2017
We had a great 2nd quarter. We closed a $15 Million Hyatt Hotel Construction Loan in Moab, Utah, a $9.5 Million Marriott Towne Place Suites Hotel construction loan in downtown SLC and a $6 Million Self Storage construction loan in Las Vegas, Nevada, along with several other smaller loans. We locked the rate on one of the hotel construction loans up front for seven years at 4.73% with no PPP.
We’ve been getting construction LTC quotes in the 70 to 75% range, some of them will allow the development fees for LTC calculations, others won’t.
We are moving ahead on a small office building perm, which is partially owner occupied, at 80% LTV, fixed at 4.5% for five years, non-SBA.
With the ten-year treasury holding in the 2.35 range, perm rates are low at 4% to 4.75% for ten-year money.
We are working on closing a 39-unit condo construction loan in the heart of Holladay. There seems to be tremendous demand in the $425,000 to $625,000 price range. Most of the buyers are 70 plus years old and are moving down from homes in the Holladay and Olympus Cove area. Several are from the Park City area. We predict we're going to see more and more condos being built again.
There are a lot of apartment projects planned. Reading the reports from Jeff Neese and Jim Wood, it looks like most areas are leasing well and that the units still planned will absorb at high rents, comparatively speak. It wasn’t long ago that it was difficult to get the bigger lenders to buy in to $1.00 per square foot rents.
My brother, John Bradshaw, has sold his company, Western Capital Realty Advisors, to Northmarq. John will continue as the manager of the group. We are now the only Western Capital for commercial real estate financing in this market!
The bigger lenders, Wells, Key, Zions and US, seem to be a little tight in their underwriting right now. We’ve noticed that there are a lot of options with smaller banks and credit unions to fill in the gap.
We have many lenders ready to do more A & D and residential project financing than we’ve had since October of 2008.
And of course, there’s a lot of great hard money available in the 2-5-point range with rates in the 10 to 18% range.
Please give us a call.