"I don't want to de-emphasize or minimize the severity of thecredit environment right now--it is very tough," one locally-baseddeveloper tells GlobeSt.com. "A lot of lenders are still sitting onthe sidelines--that is very clear." Still, this person continues,"there is money to be had for smaller projects--$50 million seemsto be the unofficial ceiling for some; other lenders are only goingas much as $25 million."
For value add projects, financing is almost impossible to get, abroker tells Globet.com, agreeing with the observation that $50million has become an unofficial ceiling for many lenders."Anything over $100 million is at a standstill."
"I just closed a $15 million land loan for a project inAlexandria," Cassidy & Pinkard Colliers's David Webb tellsGlobeSt.com. "Just bringing them to the table was an accomplishmentin this market."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
