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- 2023 New Year
2023 New Year
Capital May Be More Costly in 2023 But Good Deals Will Still Get Done
New Year, Better Deals
As we kick off 2023, we can all agree that the commercial real estate (CRE) capital markets are, well, "interesting" to say the least. The rapid increase in interest rates over the last year has had a profound impact, making debt more expensive and causing many deals that were previously justified only by low capital costs to disappear.
But before you start panicking, let me remind you that I've been in the CRE finance game since September 2006, when the Fed Funds Rate was at 5.25%. That's 100 basis points higher than today, and yet, we still had plenty of deals to work on.
The bottom line is this: any deal that was on the margin of fundamentals before the rate hikes (think multifamily development in Phoenix underwriting to a historical Southern California exit cap) is toast. But deals that are fundamentally sound today are still going to get financed. Leverage will be more conservative, and equity investors will demand more favorable (to them) deal structures, but (good!) deals will get done.
That's where we come in. Our extensive network of capital sources allows us to secure the most competitive debt and equity options for our clients.
So, don't let the uncertainty of the market hold you back from getting your (good!) deals done this year.
Got a deal? Click the button below!
P.S.
If you're brand new to the EN Capital newsletter; each week we promote a new capital source for a variety of commercial real estate properties. So if the above lender is not relative to you, the chances are high that we'll have the perfect capital source for you soon.
P.P.S.
EN Capital is a commercial real estate mortgage brokerage shop.
We are not direct lenders. Seriously, every time we do a blast some guy responds and gets pissy when he realizes we're brokers. It's on the top of our website, LinkedIn, clear in all our marketing. We honestly don't know how to make it more obvious. Don't be that guy.
P.P.P.S.
If you have a commercial real estate deal, unrelated to the above, that needs capital right now reach out to us and let's chat!
Be sure to connect with EN Capital on Linkedin. and visit our website here.
Connect with EN Capital President, Nate Whigham on Linkedin Here
Connect with EN Capital Associate, Justin Ashcraft on Linkedin Here
Nathan WhighamPresidentCA DRE Broker License: 01793655EN Capital Contact Info:www.encapital.com[email protected]Direct Line: 323-521-4766