Mid Atlantic Real Estate Journal — Mid Year Review — June 28 - July 11, 2013 — 11A
www.marejournal.com
C ommercial L ending
By David Orbach, Regal Bank Activity continues to be strong for investors looking to refinance their properties in the remainder of 2013 R egal Bank has fast earned a reputation as an area specialist
tion among lenders. Suddenly banks of all sizes are chasing multifamily deals in this area, realizing that these loans held up through the recession. Be- fore the recession, banks were wooing borrowers with what effectively was 80, 90 or 100 percent financing. Now, banks are holding true to 75% loan-to- value financing with stable cap rates, but instead are chasing rate and term. Some banks are throwing very lengthy terms out there for a rate that is not commensurate to the interest rate risk. At Regal Bank, multifamily and mixed use lending has been
our focus from the beginning. We are experts in commercial real estate financing and are well known in the marketplace for our competitive pricing, professionalism, and quick ex- ecution on loans. We’re not trying to be some- thing that we’re not. We’re not trying to offer products in which we have no background. All our commercial lenders have exten- sive real estate backgrounds, so that’s what we do and we do it better than most. As I learned frommy banking mentor “Keep it simple. Take in deposits and lend them out.” You will see the difference
particularly when it comes to response time and accessibility. When borrowers deal with the bigger banks, they may (and I stress may) get a slightly lower rate. But here you can speak directly to me, to our bank president or chief lend- ing officer. I don’t know of any banks where a borrower/broker can have that high a degree of contact. If we couldn’t produce the rates and the dollars a borrower needs, that wouldn’t matter. But when we can meet the parameters of a loan and give that exceptional level of service/contact, it’s a real win for our customers.
Looking forward to the re- mainder of 2013, I think activ- ity will continue to be strong for investors looking to refinance their properties. Whether this recent rate uptick is a trend or not, people always need to refinance. Even if rates do start to steadily tick up, it likely will be a slow progression. And whether or not other banks start pulling back on their lon- ger terms remains to be seen. However, at Regal Bank, we will continue to stick to what we know works and continue to do great business. DavidOrbach is chairman of Regal Bank. n
in multifam- ily and mixed use lending, e n a b l i n g current and prospective a p a r t me n t building in- v e s t o r s t o purchase or
David Orbach
refinance their properties with loan amounts currently up to $4.5 million. The recession and market turmoil which began in 2008 still provides an overhang on new homeownership these days. Despite current favorable con- ditions for purchasing a home, would-be homebuyers seem to be delaying home ownership for various reasons, whether it be to fix their credit, save up for a down payment or wait until the market further stabilizes. While the U.S. homeownership rate plunged 65% in the first quarter of this year to its low- est level in 18 years, our area’s number of occupied rental units has grown. Being a densely populated portion of the state adjacent to the New York metropolitan area, northern New Jersey en- joyed a high occupancy rate for rentals the past several years and continues to enjoy such robust levels. Now that the re- cession is over, North Jersey’s rental market shows no signs of slowing. This is positive news for in- vestors, as well as lenders who cater to this product. At Regal Bank, we are seeing numerous requests for refinancing due to an increase in a property’s value (from higher rents or renovations) or an upcoming ex- piration of a loan. Investors are trying to lock in rates at these historical low levels because they believe rates are going to start to creep up again. And in fact, over the last week or two, they have. We’re even seeing a good number of borrowers opting to pay another bank’s prepayment penalty in only the second or third year of their loan term. They are choosing to do this in some instances to get ad- ditional cash out but mostly because their rate is so much higher from only a year or two ago that it’s worth it for them to refinance their loan. Naturally, this kind of market creates a frenzy of competi-
Specializing in multi-family, Regal Bank is ready to lend.
$2,100,000 34 unit multi family building Roselle, NJ
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