Real Estate Journal — February 8 - 21, 2019 — 3A
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M id A tlantic
M id A tlantic R eal E state J ournal By Brenner Green, Real Property Capital, Inc. The rare instance in CRE lending when things make sense
I
t’s easy to be negative and skeptical in this busi- ness. We live in a world
to the laws of common sense. So, when I encounter some- thing that makes a lot of sense and provides real flexibility, I take note of it. Recently we closed a CMBS loan for a hotel in a major lei- sure market in the U.S. Dur- ing the time period in which we were closing the loan, due to both a September 2017 one- time booking surge as a result of Hurricane Irma and a fall 2018 tech glitch with Expedia, the hotel’s revenue was down on a year-end basis. This rev- enue decrease resulted in the property’s cash flow no longer
complying with the original underwriting requirements in the loan application. Because of the amount of liquidity and efficiency in the capital markets currently, rather than severely cutting the loan amount as would normally be expected in this situation, the lender was able to keep the loan amount nearly the same and close efficiently. The way they did this was to increase the spread over the Treasury rate so as to treat all of the loan proceeds that resulted in the loan fall- ing short of the original debt
service coverage and debt yield metrics as mezzanine financing. In this instance, the Treasury rate had significant- ly decreased from the time of application, so even with the increased loan spread, the overall rate did not change significantly from where we began. While this obviously doesn’t work in every case, over the last several years we have been able to do one or two deals a year where this type of structure has been employed. When achieving the absolute highest loan amount is the
top priority, or when waiting a year for numbers to improve and taking interest rate risk is not an option, it’s reassur- ing to know that we are in an environment where there are options that provide flex- ibility that might allow you to execute on your business plan. Take advantage while it lasts. R. Brenner Green is a 20- year veteran in commer- cial real estate finance and President of Real Property Capital, Inc., a full-ser- vice commercial mortgage banking firm based in the Philadelphia suburbs.
where action and outcome a r e o f t e n driven by a response to Federal and Internation- al financial regulation. T h i s c o n -
Brenner Green
Vantage RES welcomesmarketing coordinator Gerard Bellino MARLTON, NJ — Van- tage Real Estate Services (Vantage RES) announced struct sometimes causes deals to die or at least to be altered outside of what would be the most efficient structure for borrower and lender, and sometimes in the worst case, these structures do not adhere
the addition o f Gerard Bel l ino to the rapidly growing com- mercial real estate firm, which serves S o u t h e r n New Jersey,
Recently Closed Loans
Gerard Bellino
Eastern Pennsylvania and the surrounding area. As the newly appointed marketing coordinator, Bellino will lead the company’s marketing, so- cial media and web presence for both marketing clients’ properties as well as the firm’s services. Bellino is an ambitious marketer, freelance graphic designer, and mobile applica- tion designer. Prior to joining Vantage RES, he was a sales representative at Weichert Realtors. Bellino is extremely excited to apply his business and marketing skills in a practical setting. “I am excited to share my passion (which is contagious) with our clients, and I can’t wait to take the company’s marketing to new heights,” said Bellino. The Vantage RES executive team is thrilled to have someone of Bellino’s background on the team. “Gerard’s larger-than- life personality will be a great asset both to our clients and our internal team as we take our marketing to a new level,” said Leor Hemo , founder and managing principal of Vantage Real Estate Services.
$8,200,000
$3,202,400 $9,500,000 19-unit Multifamily Construction Loan 107-Room Hotel Refinance
252-Unit Multifamily Refinance
Tulsa, OK Philadelphia, PA Orlando, FL 5.3%, 10/30, 2 Years I/O, Non-Recourse, 72.5% LTV 75% LTC, 24 Months, 5.5% 10/30, 5.8%, 90% LTV
Real Property Capital is a Philadelphia based full service commercial mortgage banking firm with a regional focus and national capabilities. Our business model emphasizes client satisfaction through a high-touch, analytical approach that distinguishes us from the competition. Learn more about our distinct approach and proven track record of success at www.realpropertycapital.com. FOR MORE INFORMATION: R. Brenner Green, President 303 Harry Street • Conshohocken, PA 19428 • 610-456-9644 • bgreen@realpropertycapital.com
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