brian holstein
2021 Hotel Financing Predictions
Brian Holstein | January 7, 2021
By Brian Holstein Positive Big Picture It is obvious that hotel operating performance will be much better in 2021 than 2020. It is, perhaps, less obvious that hotel lending has already begun staging a comeback that will accelerate throughout the year while continuing to stay ahead of actual hotel performance. Hotel CMBS Lending Rebounds Prior to Hotel Performance Leverage for hotel CMBS loans is currently available in the 55% +/- LTV range as lenders are beginning to close hospitality loans prior to the full return of cash flow. They are using the same forward-looking underwriting tactics that were prevalent in The Great Recession...
2018 Commercial Real Estate Lending Predictions
Brian Holstein | January 9, 2018
By Brian Holstein Borrowers and lenders both enjoyed a fruitful 2017 and US Hotel Advisors predicts that 2018 will be more of the same. Looking Back at 2017 Most experts predicted that 2017 would be a rough year for commercial real estate lenders and borrowers alike. The "Wall of Maturities" was supposed to come crashing down. The newly-instituted risk-retention regulations were expected to curtail lending capacity and damage liquidity. Both the 10-year Treasury rate and loan spreads were projected to rise. All of this sounds dreadful, unless of course it never happened. US Hotel Advisors took the contrarian view and got it right. The "...
Fixed or Floating, Which is Best for You?
Brian Holstein | July 20, 2017
By Brian Holstein Coke or Pepsi? Stripes or Solids? Apple or Android? Ohhh, the agonizing decisions we humans are forced to make on a daily basis! What if I told you that choosing between a fixed-rate loan and a floating-rate loan could make or break an otherwise successful real estate investment? Given how often this topic arises and how long the deliberation can last, I will guess that most real estate professionals reading this article would agree with the above statement. Below is a primer on the difference between fixed-rate loans and floating-rate loans and the pros and cons of each option. Interest Rates Fixed-rate loans typicall...
2017 Commercial Real Estate Lending Predictions
Brian Holstein | January 13, 2017
By Brian Holstein The commercial real estate lending markets started 2016 slow and choppy and spent the rest of the year making up lost ground. Volume was down, but available for good deals; rates and spreads were accommodative, even with the year-end Treasury rate spike; defaults rose slightly, but not alarmingly and banks and life insurance companies picked up market share at the expense of CMBS lenders. This year, the debt markets will face their own set of unique and unprecedented challenges, but the picture remains rosy. Wall of Maturities Much has been made about the so-called "Wall of Maturities" in 2017, which is largely the re...
Three Secrets Your CMBS Banker Does Not Want You to Know
Brian Holstein | March 28, 2016
By Brian Holstein Navigating the CMBS market can be a confusing and challenging process. Here are three CMBS secrets that will strengthen your negotiating position and ensure that you leave nothing on the table. #1 – EVERYTHING is Negotiable! Remember, this is not a car loan, or even a home loan for that matter. If your attorney or broker does not have at least 30-50 individual comments to a loan agreement (not including the swapping of "sole and absolute" for "reasonable"), you are leaving money and excess risk on the table. Just like the legal system, the key to a well negotiated loan agreement is "precedent." If it's been done...
Mortgage Prepayment Penalties – To Prepay or Not to Prepay, That is the Question
Brian Holstein | December 8, 2014
by Brian Holstein, US Hotel Advisors Are you, like most of the hotel world, evaluating an exciting amount of potential acquisitions, new developments and property renovations? Are you nervous about the $350 billion of CMBS loan maturities looming over the next three years? You're probably in awe of how low interest rates have remained and how loose the loan markets have been, especially given where we came from a few years ago. Perhaps you are eager to capture trapped equity behind a mortgage you put in place on a steal of an acquisition during the downturn. Whatever makes you excited…or anxious about the next few years, you&...
