In the 2017 “San Diego’s Best” Union Tribune Readers Poll, readers nominated and voted for their favorites in various business categories, selecting Regal Properties as the Best in the Commercial Real Estate Section. We are honored and appreciative to receive this recognition — this time by our clients — as a leader in the real estate industry. Regal Properties proudly “Invests in People and Property” by donating 10% of all fees and commissions to charitable causes, allowing the client to choose a charity to receive half of that amount.
When thinking about financing or refinancing CRE and multi-family properties, a borrower must consider more than just the loan term and interest rate. Finding the right lender for a particular property type and location, who can timely close a deal with the best terms for the borrower’s objectives usually requires broker expertise. The ideal financing for a property might be with a particular commercial bank, credit union or federal agency currently active in that sector — and knowing which lender(s) are the most competitive and active at that particular moment is critical. Many lenders might claim they loan “up to 75% of the value” at a low interest rate, but after an underwriting stress test in which that lender assumes a certain vacancy rate, management fee, and reserve amount for capital expenditures and leasing costs, it becomes apparent the actual LTV ratio will be much lower — because the lender requires a debt service coverage ratio (“DCR”) of 1.25, which does not compute at the quoted LTV. The lower cap rates seen in the market today put added stress on the DCR. Additionally, a good mortgage broker can help a buyer or refinancing owner compare and contrast different options — like interest-only periods, amortization periods, prepayment penalties, impound and reserve accounts, loan fees and costs, and recourse obligations — all of which can have significant economic consequences for the borrower.
San Diego has the 4th largest homeless population in the U.S., according to the Department of Housing and Urban Development. The homeless population continues to grow by 5% annually, and its diversity, which complicates any solution, includes:
– 8% military veterans
– 31% chronically homeless
– 39% mentally ill, and
– 20% substance abusers.
To date, the national, regional and local authorities have done little to address the problem, and the City of San Diego does not even have a single person assigned to the issue. In a region facing a severe housing crisis across every spectrum of income, creative solutions involving the public, private and non-profits sectors are required to provide enough affordable housing and supportive services to slow the growth and reduce the number of homeless.