LOS ANGELES—Retail borrowers should start looking early if they are hoping to land life company capital. The negative headlines and store closures have scared some lenders away from the retail sector—into industrial properties. Now, lenders are going to need to rely on the deal structure and relationships for retail lending.
“Start looking early. If you know that you have a maturity coming up, start looking early,” Michael Tanner, EVP and principal at PSRS, tells GlobeSt.com. “You should find a few lenders that you like and do some repeat business with them and get a few favors built up so that you have something to call on. That way is you have something that is funnier or tougher, you at least have some history with the lender and you are able to do a deal that they maybe wouldn't otherwise.”
Lending is always relationship based, but for borrowers with retail assets, now is the time to collect and cash in any favors. “You have to build a relationship,” says Tanner. “A relationship and a good track record is going to be very beneficial for retail borrows going forward.”
Life companies are looking for performance and work experience, which are also key to getting retail funding. “Life companies always want to know that you are going to perform, and they want to be comfortable with your expertise,” explains Tanner. “Retail management is much more complicated than industrial managements. You really have to know the tenants and have the right mix of tenants. It is it's own animal, and lenders really just want to find someone that knows what they are doing.”
LOS ANGELES—Retail borrowers should start looking early if they are hoping to land life company capital. The negative headlines and store closures have scared some lenders away from the retail sector—into industrial properties. Now, lenders are going to need to rely on the deal structure and relationships for retail lending.
“Start looking early. If you know that you have a maturity coming up, start looking early,” Michael Tanner, EVP and principal at PSRS, tells GlobeSt.com. “You should find a few lenders that you like and do some repeat business with them and get a few favors built up so that you have something to call on. That way is you have something that is funnier or tougher, you at least have some history with the lender and you are able to do a deal that they maybe wouldn't otherwise.”
Lending is always relationship based, but for borrowers with retail assets, now is the time to collect and cash in any favors. “You have to build a relationship,” says Tanner. “A relationship and a good track record is going to be very beneficial for retail borrows going forward.”
Life companies are looking for performance and work experience, which are also key to getting retail funding. “Life companies always want to know that you are going to perform, and they want to be comfortable with your expertise,” explains Tanner. “Retail management is much more complicated than industrial managements. You really have to know the tenants and have the right mix of tenants. It is it's own animal, and lenders really just want to find someone that knows what they are doing.”
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