MCF Company Newsletter – March 18, 2019
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We attended the Mortgage Bankers Convention in early February 2019 and this is our outlook from that event (you can watch the entire video feed interview Christian Marabella did at the Mortgage Bankers Convention in early February 2019 on the Marabella Website Home Page at http://www.marabellafinance.com).
The U.S. 10 year treasury yield is currently at 2.60% +/- (as of 3/18/19) down from 3.21% (as of 11/5/18). This is anapproximate decrease of 61 bases points. This is due to the trade war, political division, U.S. Government shut down, U.S., China and Europe slowdown and other factors. Although the decrease in the price of oil and gasoline in the same time period has given consumers / businesses and investors some relief. This is yielding Net Lease owners and buyers a window of opportunity to lock in very low rates and attractive financing terms for Single and Multi Tenant Net Lease properties. Rates may possibly increase in the 2nd, 3rd and 4th quarter of 2019 as we are coming into an election year shortly.
At the Mortgage Bankers convention we surveyed our universe of Net lenders that we have a track record of financing Net Lease properties and they are not pulling back and would like to lend on quality Net Lease single and multi tenant properties. They are still seeking acquisition, refinance, cash-out and take-out financing for Walgreens, CVS, 7-Eleven, Dollar General, Jack In The Box and other single and multi tenant Net Lease Properties. Average pricing we are seeing at this time is 4.50% to 5.375% depending on the use of the property we are financing, length of primary lease term remaining, credit quality of the sponsor and tenant and loan terms and structure requested for the transaction.
If you are in need of financing for any one of the following reasons call us so we can setup an in person or online meeting to formulate a loan strategy at (760) 479-0800; (7 days a week);
**All rates and terms are subject to change without notice. Certain other loan terms and costs will apply to all loans. All info in this Newsletter has not been verified and Marabella Commercial Finance, Inc. does not guarantee this info expressed or implied. Please verify all information.**