In the latest episode of The Brownstoner Podcast, Morris Betesh, senior managing director for capital services with Meridian Capital, describes the twists and turns of commercial real estate financing since the coronavirus hit in March. “It’s a tale of two cities,” he said.
Now that the market has thawed, deals unaffected by COVID are going to get “the best financing you’ve ever seen,” with 10-year fixed loans at rates under 3 percent, but for properties affected by COVID, “it’s very difficult,” he said.
What lenders love is anything with good collections, which tends to be rental apartments in the outer boroughs such as Brooklyn and Queens. “We’ve seen less of an impact on collections and vacancies in those areas, which is why owners in those areas are better positioned to take advantage of the attractive financing available right now,” he said.
Market knowledge and relationships have helped Meridian steer clients through challenging times and close deals with favorable terms. (Sponsored)