Q10 Realty Mortgage & Investment Company will attend the Mortgage Bankers Association’s (MBA) CREF19 Convention held on Feb. 10-13 in San Diego. We will meet with lenders who have a strong interest in the New Mexico and Colorado markets in 2019. Please contact us immediately if you would like to discuss any pending or future transactions.
Q10 Realty Mortgage & Investment Company is looking for a Project Manager/MS Office Guru/Finance Entrepreneur In Training. We are in search of a professional self-starter who won’t shy away from the hard work and high expectations of this demanding position with growth potential. Work side-by-side with the President of the Company to prepare submissions and close financing for commercial real estate projects in Denver, CO, and Albuquerque, NM.
Good communication skills, passionate attention to detail, top tier MS Office know how, and an ability to learn new skills and engage new information are all must haves. Basic accounting is helpful, and knowing your way around Photoshop would be ideal, but what you don’t know, we’re willing to teach you — including professional training as appropriate. While we anticipate most candidates for this position will have an undergraduate degree at a minimum, we’re open to hearing why you think you’re our candidate if you don’t.
As a Commercial Mortgage Banking firm, we provide the capital that builds communities — securing financing for apartments, retail spaces, warehouses, and office buildings. We are distinguished from our competition through our devotion to relationships and attention to detail, but our greatest value comes from our relationships — whether they are with clients, lenders, or our internal staff. We value lifelong education and are willing to offer some flexibility to candidates pursuing additional education while working.
Our Albuquerque office is conveniently located in Park Square in Uptown Albuquerque and is home to our loan servicing department. To learn more about our company and leadership please visit http://realty.q10capital.com. Submit resume and salary requirements to firstname.lastname@example.org or call (303) 981-5739.
Q10 Realty Mortgage & Investment Company will attend the Mortgage Bankers Association’s (MBA) CREF17 convention Feb. 19-22 in San Diego. We will meet with lenders who have a strong interest in the New Mexico and Colorado markets in 2017. Please contact us immediately if you would like to discuss any pending or future transactions.
The Mortgage Banker’s Assoc. 2017 CREF Outlook Survey is showing…
Michael Kelly and Michael Stordahl of Q10 Realty Mortgage & Investment Company arranged $6.8 million financing for Panorama Point Office Building in Southeast Denver, CO. The property is located in Panorama/Highland Park and includes more than 79,435 NRSF.
The Panorama submarket includes Highland Park and consists of approximately 3.45+ Million SF of Class A and B office buildings. It has long been considered the desired location for large corporations.
“Panorama Point Office Building was perfectly positioned for this new financing after the owner had done an excellent job of re-tenanting the building and making significant capital improvements. This building is now in a strong competitive position to take advantage of increasing demand and rents in the Southeast Denver Sub-market.” ~ Michael Kelly
Michael Kelly and Michael Stordahl of Q10 Realty Mortgage & Investment Company arranged $4.1 Milion financing for Yearout Mechanical’s industrial office/warehouse in Albuquerque, NM. The lender provided a 15-year fixed rate loan with a 15-year amortization. The Main Building/Warehouse was constructed in 1999 and a second warehouse was added in 2007. The property includes 72,236 SFNLA.
“The properties proximity to the Interstate, Paseo del Norte, and Jefferson St. allows for good access to the entirety of Albuquerque. The area offers a wealth of amenities and the new construction has attracted tenants from many markets around New Mexico.” ~ Michael Kelly
Joined by all of our colleagues with Q10 Capital, we returned last week from the commercial real estate industry’s annual finance conference (“CREF”) held this year in Orlando, Florida. More than 3,500 registered members and hundreds of additional real estate finance professionals gathered from around the country to discuss industry trends, strengthen existing relationships, and forge new ones. The 3 1/2 day conference was a whirlwind of individual meetings, MBA panel discussions, formal dinners and meetings with Investors to discuss new allocations for commercial mortgages throughout the United States.
With much of our lending centered on major markets in Colorado and New Mexico, many of our Investor meetings at the CREF conference was focused on increasing allocations for 2016.
Life Insurance Company Lenders
Most of our Life Insurance Company Investors met or exceeded their allocation goals in 2015 and have larger appetites for 2016. As a group, Life Insurance Companies report healthy portfolios with an incredibly low overall delinquency rates of less than ½ of 1%.
With deteriorating global credit markets (corporate bonds specifically) in the second half of 2015, Life Company lenders were attracted to Commercial Real Estate’s healthy fundamentals (low vacancies and stable rental rates) and risk-adjusted yields. We expect this to continue, with an increasing focus on borrower experience and property specific metrics.
The second half of 2016 was very challenging for CMBS lenders, with credit spreads increasing steadily after a period of relative stability earlier in the year. The average monthly spread increase from July 2015 to January 2016 was more than 10 basis points, with the biggest increase seen in August. CMBS spreads remain elevated with no clear signs of decreasing. Despite this backdrop of rising spreads, conduit loan origination volume was strong in 2015 with more than $100 billion in new issuance. Much of this was driven by a wave of 10-year loan maturity refinances resulting from massive lending volumes from 2004-2007.
A noteworthy consideration for prospective CMBS borrowers is the impending risk retention requirement as part of the Dodd-Frank Act. Beginning in December 2016, CMBS issuers, or the B-piece buyer, will be required to retain a 5% interest in every new loan pool rather than selling their entire interest like they have done in the past. The new risk retention requirements are anticipated to cause further widening of CMBS spreads in the second half of 2016. Knowledgeable CMBS borrowers may be well served by financing their properties before the full impact of the new regulations are felt.
Agency/GSE Multifamily Finance
The two dominant GSE lenders, Fannie Mae, and Freddie Mac, remain very bullish about the market in 2016. After capturing more than 40% of the total multifamily debt market, agency lenders are well positioned with a variety of fixed and floating rate options for apartment owners.
Freddie Mac’s successful launch of their Small Balance Loan (SBL) program resulted in 1,005 closed transactions totaling more than $2.6B in its inaugural year in 2015. At CREF, Q10 firms were able to meet directly with David Cardwell, Freddie Mac’s Production Director for Small Balance Lending. Mr. Cardwell anticipates originations in this program to grow nationally to $3-4 billion in 2016.
In summary, Commercial Real Estate debt markets are healthy, and lenders are competing for quality transactions. Compared to previous credit cycles, loan to value and debt coverage ratios are more conservative which has kept most portfolio lenders in the market. Uncertainty in the global capital markets and additional regulatory constraints will be challenging for CMBS issuers, and we predict that some existing lenders will exit this market.
For additional information or guidance on a specific transaction, please contact us at Q10 Realty Mortgage & Investment Company.
- 2015 total production was $5.02 billion up 33% from 2014’s $3.719 billion.
- This was our best year since 2007’s $5.541 Billion.
- Total number of loans closed for the year was 690 up from 535 in 2014.
- Q4 was up about 3.5% over Q4 of 2014 in dollar volume.
- Average loan size for 2015 was $7.174 million up from $6.951 in 2014
- Life company production was $2.715 Billion with 400 loans or 55% of the total dollar volume followed by conduit at $906 Million or 18% of production and banks at $591 Million or 12% of the total.
- The majority of this year’s increase came from life company lending (up $848 million from 2014 and Fannie/Freddie up $288 Million).
Today, at MBA’sCREF16 Convention, the MBA released several reports covering the commercial/multifamily real estate finance markets. The reports are part of MBA’s ongoing research and analysis. Among the findings:
- 2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
- Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
- MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
- MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings
Abstracts of and links to the reports can be found below, and more information is also available in MBA’s CREF Database and on www.mba.org/crefresearch
2015 Q4 Commercial/Multifamily Originations Up 19%; Total 2015 Up 24%
There were strong volumes of borrowing and lending for commercial real estate in 2015. In particular, the fourth quarter was the fourth highest for borrowing and lending on record. Banks, life insurance companies, and Fannie Mae and Freddie Mac saw their highest tallied originations volumes. Of the major investor groups, only the CMBS market didn’t break a record for originations. In terms of overall borrowing and lending volumes, 2015 as a whole was likely second only to 2007.
View MBA’s Q4 Commercial/Multifamily Mortgage Bankers Originations Index
Volume of Commercial/Multifamily Mortgages Maturing Grows 51%
Eleven percent or $183.3 billion of $1.7 trillion of outstanding commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2016, a 51 percent increase from the $121 billion that matured in 2015. Maturities will grow to $208 billion in 2017.
Learn more about MBA’s Year-end 2015 Commercial/Multifamily Loan Maturity Volumes Report
MBA Forecasts 3% Rise in Commercial/Multifamily Mortgage Bankers Originations in 2016; Mortgage Debt Outstanding to Rise to $2.9 trillion
Commercial and multifamily real estate finance markets are expected to remain strong. A growing economy, coupled with only gradual increases in interest rates, will continue to support the commercial property market, but there is a chance that cap rates could increase more rapidly in response to rising interest rates, impacting property sales and mortgage originations.
View MBA’s Fifth Annual Commercial/Multifamily Real Estate Finance Forecast (members only access)
MBA Releases 2015 Year-End Commercial/Multifamily Servicer Rankings
MBA’s Servicer Rankings includes breakouts for primary, master and special servicing. It also ranks firms by their total volumes, as well as their servicing for specific investor groups, including CMBS, life insurance company, Fannie Mae and Freddie Mac, FHA and other groups.
View MBA’s Year-End 2015 Commercial/Multifamily Servicer Rankings