Commercial Borrowers seek Flexibility Amid Volatile Lending Landscape
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Ben Kadish, president and founder of Chicago-based Maverick Commercial Mortgage, agrees that demand for short-term financing is currently driving deal volume across the commercial real estate lending arena.
“There’s a lot of money being raised to provide that type of gap financing between the first mortgage and the new loan,” says Kadish. “But you still have to pay debt service, and cash flows are tight right now for a lot of owners.”
“At the same time, these owners aren’t going to try to refinance until they’re at risk of default or foreclosure,” Kadish continues. “So, they have to bring new equity to the table, even if they’re able to keep the property. This could come from their own pocket, a capital call with investors or by bringing in a new source of preferred or mezzanine equity.”
Read More: https://rebusinessonline.com/commercial-borrowers-seek-flexibility-amid-volatile-lending-landscape/