Special Purpose Property Loans (ex. Hospitality, self-storage, shopping malls)
What is your recommendation for distressed hotel and retail property owners
As hospitality and retail properties struggle with vacancies and closures during the pandemic, investors are searching for alternative lending options. Banks and credit unions are hesitant or refusing to provide financing for under performing commercial real estate such as shopping malls, hotels, restaurants, bars and retail.
Private lending may be the life raft needed for many CRE investors sinking under water due to tenants moving out or customers absent as a result of a shift to remote work and virtual offices.
What is repurposing of CRE?
Closed retail outlets are being repurposed to breathe new life into urban and suburban shopping areas. Mixed-use condo conversions of shopping malls and food delivery fulfillment centers have breathed new life into empty offices, restaurants and retail spaces.
E-Commerce companies need more warehouse space and distribution centers near a strong customer base.
What is the current market for Medical Offices?
We also have seen a high demand for medical office buildings over the past seven years. Upgrading and developing new offices for the medical and dental community will alleviate the high vacancy rates experienced by Commercial Real Estate owners of traditional retail and offices spaces.
What is the prospect for investing in Self-Storage facilities?
According to U.S. Self-Storage Property Metrics (Moody’s Analytics/Reis Inc.) rent declines are more prevalent in the Southwest than the West due to over development. It would be wise to study the market trends of supply and demand for this popular investment asset. The self-storage industry has plateaued and future supply growth is expected to slow considerably. Vacancy rates and rents should remain flat in most metro areas, with the exception of the Western regions.
At Trim Financial, we not only provide strategic lending options for your special purpose investment property acquisitions and/or refinances, but we also provide trend analysis and market updates imperative for making a prudent decision for your Commercial Real Estate investment goals.
Fill in the short application page with your investment goals and one of our commercial real estate financial professionals will contact you with answers to the above business investment questions and more!
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