When looking to finance a stabilized retail acquisition, there are several competitive loan options. Depending on the deal and borrower profile, attractive non-recourse fixed-rate financing is available from LifeCo, CMBS, and Bank lenders.
LifeCo Lenders
- Competitive Attributes: Lowest spreads (Treasury + 1.60%-2.25%), interest-only at lower leverage, flexible prepay traded for spread, retain loans on balance sheet and service in-house
- Constraints: Max 60%-65% LTV, focus on grocery-anchored retail (no strip or power centers), uncompetitive on harrier deals with a focus on location and quality, larger minimum loan sizes
CMBS Lenders
- Competitive Attributes: Up to 67.5% LTV with full-term interest-only, competitive on all multi-tenant retail property types, attractive spreads (Treasury + 2.25%-2.75%), lean into hairier deals
- Constraints: Defeasance required, no in-house servicing
Bank Lenders
- Competitive Attributes: Prepayment flexibility, fixed/floating options available, will lend on and size loans with value-add business plans
- Constraints: Terms vary by market, wider spreads than LifeCo or CMBS
Please reach out if you have any questions on our recent retail financings or for more details on the current lending environment.
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