To sell or refinance? Although no single solution fits all, refinancing allow owners to both hold onto assets and be buyers at same time. At the end of 2014 and into 2017 we expected another wave of mortgage debt to come that were financed when values at their previous peak, it is once again “the best of times” to own commercial property. Options are now available to commercial property owners to consider which offer the better opportunity for enrichment. With the low interest rate environment, refinancing is preferable by those who opt for maintaining ownership of their best performing properties while still able to use cash from those assets to fund additional investing.
Excerpts from the Article:One can forgive commercial property owners if they seem a bit giddy lately. Just four short years ago, their property values had been cut in half in the wake of the crippling global economic recession. No lender would return their calls and those unfortunate enough to have loans come due often lost their properties to the dreaded special servicers. The changes in the financial envionment today is nothing short of remarkable. With real estate now considered a prized asset class, commercial property owners enjoy unprecedented access to capital. An abundance of buyers eagerly bid up commercial real estate values and a superabundance of lenders line up to compete to finance their properties.
Citation and link:
Heschmeyer, Mark. “To Sell or Refinance? In a CRE Market Flush With Capital, Owners Enjoy Luxury of Choice.” CoStar News., 19 Nov. 2014 Web. 24 Nov. 2014.