If you have designs on buying that aging B property to renovate it to a B-plus, there’s some good news. Lenders want your business. But there’s also a downside—you likely won’t be the only one who covets that particular asset.
Since the end of 2012, Keith Harris, chief investment officer at Chicago-based owner and manager Laramar Group, began to see banks move more aggressively on acquisition and renovation loans. Wells Fargo and J.P. Morgan financed several of its acquisitions but Harris notes that local and regional lenders are also highly competitive.
“The debt market has gotten aggressive in terms of the amount of money that lenders want to put out,” he says. “At the same time, rates and spreads have come in a bit.”
Read more...The Smart Money Likes Value-Add Deals - Multifamily Executive Magazine