The topic of this exclusive interview is the current state of turmoil and uncertainty in commercial debt markets.
San Francisco, CA (PRWEB) July 02, 2013
In this timely 35 minute podcast, Peter Slaugh, Managing Director, and founder of Steelhead Capital gets interviewed by Mark Jensen, Investment Specialist at Newmark Grubb ACRES in Salt Lake City, Utah.
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The full podcast is available on SteelheadCapital.com for complimentary download to all visitors.
Marks questions to Peter include:
1. “Volatility” seems to be an understatement what is going on in the debt markets?? Idiot Bernanke last Wednesday decided to broadcast Feds intention to taper the bond buying program- which sent the capital markets into a tail-spin. Uncertainty its a collective knee-jerk response in fear of whether or not we can sustain a road to recovery without the Fed providing liquidity in the capital markets through their bond-buying program.
2. It seemed there was zero lag in the markets reaction is that accurate? The response was instantaneous…
3. How does this effect pricing across the board? Explain the cap rate/interest rate relationship here.
4. Is this an anomaly, or are rates truly headed up? Rates are being driven higher in “double-whammy” fashion whereby not only are the indices like the 10-year Treasury has been on the rise, but also the spreads above the treasuries are gapping out as well. Realistically speaking, there may not be much downward pressure on spreads until the Wall Street firms clear the $ 8.2BB of CMBS paper that is waiting for securitization (probably a few months).
5. Specifically what about multifamily the so-called “darling” of the investment industry where are rates today vs. last month?
6. Its times like this that shakes everyone up a bit do you see buyer terms and behaviors shifting a bit in response to rising rates and volatility? Theres been almost 18 mos of low volatility and low interest rates. The questions is whether rates are going higher or if theyll plateau for a bit? Any deals under contract right now — if debt is involved and rates havent been locked then Buyer and Seller are back at the table discussing price. Part of this question revolves around the fact that as rates rise, Sellers prepay declines so net net its not dollar for dollar, but this may be a some consideration?
7. Who are the primary players in this space?
8. And how do they compare?
9. Talk about the deals that grabbed some of the lowest historical rates they should have a competitive advantage not only because of the obvious cash-flow but what about re-sale?
10. It seemed transaction velocity was well underway in most markets across the country any thoughts on what well see for the second half of the year? Some say it will be a little quieter but theres an abundance of capital that still wants to deploy so there will probably see some confusion and quiet this quarter but those dollars are not going away.
Mark Jensen is a top producing investment broker with 10 years experience in the field. Mark is a member of the national C&W Alliance Capital Markets Team and has closed over $ 270 million in commercial real estate transactions since 2004. While he has experience and real time activity in all CRE sectors, Mark has sold over 1,414 apartment units in the past five years alone. Continually a top producer for his previous company, Cushman & Wakefield | Commerce, Mark was in the top 5 in the company for the last two years before joining Newmark Grubb ACRES in 2013.
Mr. Slaugh was a founder and principal of Steelhead Capital in 1998 and now serves as Managing Director of this San Francisco-based commercial mortgage banking platform. Prior to founding Steelhead Capital, Mr. Slaugh originated commercial loan transactions for all property types at GMAC Commercial Mortgage. Over the last decade, Mr. Slaugh has originated well in excess of $ 1 billion in commercial real estate debt/mezz debt and equity transactions. His extensive knowledge of the capital markets significantly enhances the firms ability to aggressively leverage acquisition and renovation costs in order to maximize investor returns.
About Steelhead Capital:
Since 1998, Steelhead Capital has been a premier provider of commercial loan financing solutions and advisory services for commercial real estate investors. Steelhead Capital brings an extensive network of lending sources, structured finance experience with a focus on acquisitions, and a clear commitment to personalized customer service for investors financing properties in any of the 50 states.
For additional information about Steelhead Capital or to submit a no-obligation commercial loan request, please visit SteelheadCapital.com/application or contact Mr. Peter Slaugh at 1-800-713-9220.