Commercial and Industrial Real Estate Funding

Commercial and industrial real estate financing can be the cornerstone to achieving business success. As investment opportunities, real estate has historically created more millionaires than any other investment sector.

The current situation in the marketplace offers unprecedented opportunities to obtain fantastic deals. All that is required is to know what constitutes a good deal , to know how to structure the deal advantageously, and to have access (often creatively) to the funding needed to "make it happen".

Even the big boys play this way. In May, 2008  Real Estate Fund manager, Blackrock, agreed to buy a $22 billion portfolio of distressed US Real Estate from UBS. But they were only paying $15 billion for it (about a 33% discount) AND borrowing 75% of the actual cost. That means getting $22 billion for putting up only 3.75 billion of "earnest money." Shouldn't you be just as creative?

Done right, real estate financing can even provide a major asset to most businesses, even those that are not real estate based. From manufacturing facilities to corporate service centers, such an asset can provide tremendous savings to a business (rent/lease payments are often a business largest operating expense).

Further, new revenue streams can be attributed to the property itself through rental income coming from additional space being rented to other businesses. In addition, not only are there valuable tax deductions in owning property, but the property could very well be the only asset on your books that appreciates in value! Plus, when you are ready to move, all the improvements to the property that would have been leasehold improvements for someone else are now yours to calculate in your increased sale price. It has been correctly said that a number of successful restaurant chains are not really about the food part but about the real estate.

Then there are those businesses that are totally dependent on the real estate. Construction and development of property are the heart of such businesses as residential and real estate developments, industrial parks, shopping centers and malls, the hospitality industry, infrastructure projects from airports to ship yards, amusement parks, etc.

Unlike the almost cookie-cutter mentality of residential real estate, each commercial and industrial real estate project requires a unique strategy to match its individual funding needs. Besides the type of property, nature of the business and the degree of risk involved, a variety of other factors such as business permits and licensing, zoning, environmental factors, vacancies, and local government attitudes toward the business all affect the lending or equity situation. Other considerations include whether the property is single-purpose, mixed, or multi-purpose in nature, and the stage of development. Properties can need funding to develop projects from the raw land stage to various stages of project development. There is a world of difference in real estate loans and joint venture situations granted to developers who want to build a hotel compared to real estate loans and joint venture situations given to a company for expanding a successful hotel property. There are many types of loans such as construction loans, take-out loans, refinancing, and bridge loans to name a few. Additionally, there are many ways equity or joint venture funding can be applied- either as a stand alone situation or with additional debt funding

Finding the right real estate lender or joint venture partner on your own means working through a maze of possible funding sources. Of course, there is also for the business person a confusing variety of types of sources. They range from private venture real estate sources and hard money lenders, to pension funds, life insurance companies thrifts and finance companies. Additionally, you should not forget foreign investors who have always loved owning prime American real estate. Finally, many real estate funding sources not only specialize in certain types of projects, but also give preference to those projects that meet some special criteria.  

Fortunately, you don't have to maneuver your way through this mine field on your own.  CAPS Interactive Corp. offers the following services to help secure funding for major real estate projects:

• Organize your project so that it makes the most sense to the right funding sources
• Determine which funding sources are potentially the “right” funding sources for your project
• Open the doors to many real estate funders in its network - doors that could very well be closed to you as an individual or private company
• Get the best deals from the variety of sources possible

CAPS Interactive Corp. is able to offer these services to its clients  because of the professional relationships it has established and continues to expand with the highest quality commercial mortgage brokers, bankers, and attorneys. Our relationships are both with institutional and non-institutional funding sources. Our sources are both domestic and international in scope, and their interests cover property situations worldwide. They cover not only ways to achieve harder-to-accomplish debt deals, but also those deals that are more suited to where a joint venture partner would be appropriate. We are well aware that many projects have serious time constraints, as well as various non-disclosure considerations.

If you feel that your company has a situation that we might be able to help with please contact us. Complete our Real Estate Funding Sheet below and either E mail us the information using the Submit button on the form, or print and fax the fax form to 702-920-8555. (Please do not send any information or pages other than the supplied form or we will be unable to respond.)

For more information, please contact us at info@capsinteractive.com