Does construction lending receive any relief?
According to HREC, banks’ withdrawal and the high rates and building expenses make construction finance extremely challenging. It also mentioned how PACE lending is becoming more popular and aids in lowering construction costs.
from the standpoint of the investor?
Christopher Rooks.With the current cost of capital and the almost complete lack of liquidity for construction financing, it is almost hard to make new development feasible. Anticipate a subdued supply chain.
Gregory Friedman.The building of new hotels in the United States is being slowed down by bank lending regulations that are becoming more stringent. Projects all around the nation have been delayed by the turmoil with banks, especially regional banks, which has restricted access to loans and increased construction costs.
Aeppel Glyn.It’s costlier but making a slow comeback. There are lenders in operation like Peachtree, but they are very selective, require solid sponsors and connections, or have expensive loan rates and a low debt ratio.
Mike Wilbert, Sr.”Strong sponsors can obtain debt finance for new construction.”
Mount Greg.”It’s costlier than it is accessible.”
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