News & Press
Will Lower Rates Bring Banks Back?
Excerpted from the article published by Multi-Housing News
The lower LTC and loan-to-value bids from banks at 50 percent leverage means the borrower has to come up with more money, according to Rob Gilman, head of Anchin’s real estate group. Now that rates are coming down, some are considering variable-rate loans again.
Regional banks were being selective and avoiding riskier deals, he said, because of concerns over distressed assets, rising maturities and decreasing property values.
“If a larger bank had to write off a $50 million loan, you know their liquidity wouldn’t be as affected as much as for a regional, where the $50 million makes a big difference,” indicated Gilman.