However, banks may open the purse strings wider
on construction lending as some of the existing construction loans cycle through and move into permanent financing.
In addition, competition in the bridge lending space is pushing some debt funds to expand into
construction lending as an alternative to place capital.
Competition might also push some debt funds to expand
into construction lending or preferred equity as an alternative to place capital.
Just as we saw in the second half of 2016, construction costs remain high and
stringent construction lending constraints will remain for the foreseeable future.
Housing starts have been far below what's needed to meet rising demand, and easing some requirements on community banks could lead to more
robust construction lending.
The shipping container's
steel construction lends itself well to safe living, and they can be stacked up to 12 containers high.
In theory, certain kinds
of construction lend themselves to being even stronger than standard construction — but that's only if they're done properly.
Although BMO Harris Bank is currently in its quiet period ahead of announcing its financials later this month, the bank remained very active
in construction lending in 2017.
With construction lending tight and memories fresh of speculators who walked away when mortgage financing dried up, builders are funding projects with cash commitments from buyers of as much as 60 percent of the purchase price.
Chase Gilbert is the CEO and Co-Founder of Built, an enterprise technology company focused on
making construction lending simple and safe.
As some banks step away
from construction lending, the Federal Housing Administration (FHA) is stepping into the gap, with competitive rates and faster processing times...
Chase Gilbert is the CEO and Co-Founder of Built, an enterprise technology company focused on making
construction lending simple and safe.
Through first hand experience as well as extensive builder, borrower, inspector, and lender relationships, Chase has become a subject matter expert on all
things construction lending.
«Limited lots, labor shortages,
tight construction lending and higher lumber costs are impeding the building industry's ability to produce more single - family homes.
Some banks are
tightening construction lending in order to avoid having their transactions classified as high volatility commercial real estate (HVCRE) loans under new Basel III rules.
NREI: When we talk about new requirements for HVCRE loans, which have been largely blamed for
slowing construction lending at the larger banks, is that a Dodd - Frank issue or a Basel issue?
PNC Real Estate is one bank that has admittedly «taken its foot off the gas» on its
multifamily construction lending, notes David Aloise, an executive vice president at PNC Real Estate.
«We have seen some banks that have said we are not
doing construction lending for the entire seniors housing industry, or there is a particular product type or particular geographic market where they are on pause,» says Lindsay.
Our editor, Steve Monroe, moderated a 90 - minute discussion among panelists Chris Fenton of Berkadia, Rich Malloy of BBVA Compass and Cary Tremper of Greystone, covering a range of topics from the current pace of seniors housing construction today to best practices in the current
construction lending environment, and from take - out financing to their thoughts on the 2018 market, and beyond.
Many banks are either cutting down their luxury
condo construction lending or stepping away from the market altogether, according to brokers and lenders interviewed by The Real Deal.
Funding led by Index Ventures will
enable construction lending innovator to capitalize on accelerated growth, deepen team, and bolster investments in data utilization for industry.
Marcus said: «While modular
classroom construction lends itself to the tight timescales of school holidays, we have also completed a number of major construction projects at schools during term time.
Caldwell declined to discuss the specifics of project funding beyond saying that it's being paid for by
traditional construction lending and a series of public / private partnerships.
His practice encompasses a wide variety of construction and litigation matters, including delay claims, claims for changed work, contract disputes,
construction lending disputes, construction defect claims, surety bond claims, mechanics» liens and stop notices, public works issues, bid protests, false claims, claims for design professional negligence, products liability claims, international arbitrations, as well as drafting and negotiation of construction and design contracts.
Meanwhile,
retail construction lending could become even more conservative in 2018, depending on how retailers are impacted by holiday sales and additional store closings and bankruptcies.
And while a number of banks are more conservative on short -
term construction lending, there has been a noticeable shift in the past six months where banks are more aggressive on permanent loans with longer terms — notably 10 - year deals.
As long as
construction lending stays in check, and personal recourse and completion guarantees are required for all new construction debt, the industry does not need to worry about reaching saturation in the medium term.
He reports that Key, which has traditionally done
only construction lending, did about $ 600 million in permanent loans through the CMBS market last year.
That vision of segmented roles — vanilla deals for life insurers, large - balance and incrementally more speculative deals for CMBS lenders, and the most
risky construction lending relegated to specialized balance - sheet firms like Bank of the Ozarks — speaks to a measure of health and stability in the broader financing market.
Prior to moving into production in 2007, Bruno was Vice President, Investment Management, where he was responsible for managing MCAP's residential
construction lending programs, including underwriting, portfolio management, credit adjudication, special loans, asset allocation and investor relations.
With a background in valuation, credit / underwriting and origination, he has a depth of experience that ranges
from construction lending, term and revolving credit facilities to CMBS.
Through first hand experience as well as extensive builder, borrower, inspector, and lender relationships, Chase has become a subject matter expert on all
things construction lending.
«They will almost certainly target two of the hot - button regulations that commercial real estate buyers and lenders have complained about loudly,» said Parsons: «The risk retention rules that have been blamed for slowing CMBS lending, and the new rules on so - called High Volatility Commercial Real Estate loans, which are being blamed for
slowing construction lending.»