HOUSTON—Closing capital markets deals can be tough in an increasingly complex market. But Jim Adams, senior vice president at Berkadia, is getting deals done.
GlobeSt.com caught up with Adams to talk about those challenges, how he’s getting creative to overcome them, and more in part two of this exclusive interview. You can still read part one: Why This Asset Class Hogs Capital Flow.
GlobeSt.com: What are the biggest challenges to getting deals done in today’s market?
Adams: There are many new buyers and developers coming to Texas. Understanding who these groups are and ensuring that they are qualified is one of the biggest challenges facing lenders.
Also, our clients today have increasingly complex capital and structuring needs. It demands a high level of knowledge of the space and a commitment to keeping up with the latest trends in financing.
GlobeSt.com: How are you getting creative to overcome those challenges?
Adams: Berkadia has a national platform of approximately 50 offices consisting of both mortgage bankers and investment sales professionals. We offer integrated services that allow us to follow a transaction from end-to-end, as well as get to know more about the buyers and developers looking to enter the Texas market.
GlobeSt.com: How would you compare the different lending sources in the Texas market? Are certain sources becoming particularly aggressive and/or taking up more market share? And if so, how is this affecting the broader lending landscape?
Adams: Banks are the most aggressive new source for non-recourse term loans and are giving the life companies the biggest competition. CMBS lenders are also becoming increasingly aggressive every day for deals and are the best source for higher leverage loan requests. On the other hand, life companies have stayed fairly stable, while the agencies have lost some market share due to increased competition from life companies and CMBS.
GlobeSt.com: How do you expect the climate to change over the next few quarters?
Adams: As long as both floating and fixed rates stay in their current ranges, Texas will likely continue to be among the top markets in the US for capital sources, buyers and developers alike.