CHICAGO, ILLINOIS (March 29, 2022) – Sue Blumberg, senior vice president/managing director of Northmarq’s Chicago-based regional debt/equity team, recently provided her insights in February/March edition of Illinois REJournals. The story, titled “Chasing capital: Aggressive lending market sets 2022 up for success,” notes that with capital abound, developers are hunting for it as the Illinois commercial real estate market rebounds from a challenging few years.
Blumberg explained how she is keeping an eye on floating rate loans, bridge loans, cap costs and swaps. “Volatility in the treasuries and rising interest rates will come into play with ability to leverage transactions,” she said. “Refinance risk will be looked at closely and we expect the costs to increase until we see stability in the rates.”
She also pointed out that borrowers are expecting significant rent growth and will capitilize on that in the future. “We have also done our fair share of long-term permanent loans, seeking to lock in those historically low interest rates,” she said. “Anyone who could refinance now to capture the rate has done so. This trend should continue as rates are still quite low.”