MARKET UPDATE
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The Fed announced today (June 17) that the
economy is strong enough to handle a rate hike this year subject to continued
improvement in real unemployment.
http://finance.yahoo.com/news/fed-says-u-economy-still-strong-enough-handle-180426580--business.html
Excerpt from the following article (see link) says it well: The ease with
which policymakers backed down from a June rate hike speaks to their concerns
about the fragility of the economy. They are unwilling to risk undermining the
expansion they so carefully helped to nurture, nor do they see pressing reason
from inflation data to do so. http://www.bloomberg.com/news/articles/2015-06-16/janet-yellen-s-prediction-last-month-is-already-being-vindicated
Their biggest concern continues to be U6 "the real unemployment
rate" which stands at 10.8% http://www.cnbc.com/id/ and
includes "total unemployed, plus all marginally attached workers plus
total employed part time for economic reasons, as a percent of all civilian
labor force plus all marginally attached workers."
Then again, we just experienced two consecutive months of the most home starts
in the US since 2007, and homebuilding is a key to job recovery. http://www.bloomberg.com/news/articles/2015-06-16/builders-started-most-u-s-homes-in-past-two-months-since-2007
This is the kind of news which, combined with possible rises in oil
prices when oil inventories finally subside, creates inflation
concerns with the FED and will soon cause rates to rise.
We have just seen how fast the 10-year Treasury can rise on the perception of
the FED increasing rates. Don't get caught waiting for rates to drop.
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INTEREST ONLY
We are seeing some interest only depending on leverage with our life companies
and up to 10 years interest only with up to 65% LTV CMBS loans.
FORWARD COMMITMENTS
If you have a loan maturing over the next 12 months and want to lock up a fixed
rate today, several of our life companies are providing forward commitments.
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CLOSED LOANS
$24,500,000 Life Company Permanent Loan on
anchored shopping center
San Diego, CA
$20,500,000 Life Company Permanent Loan for a
170,000 SF Office Building
Chandler, AZ
$4,225,000 unanchored retail center CMBS
permanent loan
10-years interest only at 65% LTV
Las Vegas, NV
VARIOUS APPLICATIONS ISSUED & LOANS IN CLOSING
$37,500,000 196-unit multifamily construction loan
$13,500,000 medical office building life company permanent
$10,000,000 95,000 SF office building life company permanent
$10,000,000 99,000 SF office building bridge loan
$6,000,000 120,000 SF multi-tenant industrial
life permanent
$5,518,000 34,000 SF strip retail life company forward
$4,800,000 75,000 SF multi-tenant office life permanent
$4,000,000 173,000 SF industrial life company permanent
$3,800,000 15,000 SF office over retail life
company forward
$3,360,000 16,362 SF retail CMBS
permanent
$1,500,000 36,400 SF industrial life company
permanent
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WESTCAP offers the ability to obtain loan sizes ranging from
$1,000,000 to $250,000,000 nationwide.
WESTCAP provides fixed and floating rate debt programs for a
variety of loan terms and purposes including long term permanent loans, short
term permanent loans, construction loans, mezzanine loans (including
construction mezzanine loans), bridge/rehab loans, as well as joint
venture equity placement for all types of income properties including:
Multifamily
Student Housing
Hospitality
Office
Industrial
Medical Office
Retail
Self-Storage
Senior Housing
WESTCAP serves as a correspondent to 17 life insurance
companies and other sources of capital in order to meet all of our
client's financing needs. Most of these correspondent relationships date
back over 25 years, including Sun Life of Canada for which we have been the
exclusive correspondent in Southern California for almost 30 years.
We are always available to discuss potential
financing and or equity requirements, or to provide a written quote to
help convince a seller that you, or your client, are the most qualified buyer.
We will also handle any size transaction, as we are interested
in establishing long-term relationships as early as possible.
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Steve Bridges
Executive Vice President
WESTCAP CORP
9960 Irvine Center Drive
Irvine, CA 92618
Office: (949) 387-9061 Cell: (949) 235-1540
