November 21, 2018
Prime Rate

Featured Image for Life companies aggressively seek multifamily

Life companies aggressively seek multifamily

Life insurance companies continue to show a strong appetite for commercial mortgages as a piece of their investment allocation. In 2017, life insurance companies originated over $61 billion of commercial mortgage debt, and feedback from our correspondent life insurance company lenders indicates that this appetite will continue through 2018. However, there is a trend toward more conservative, lower-risk loans as we move into the latter stages of the current economic cycle. For life insurance companies, that means two things: first, a focus on low-leverage transactions (sub-65 percent loan to value); and second, an increase in their asset allocations toward multifamily propertie...

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Essex Financial Group - Real Estate Analyst Opening

Essex Financial Group – Real Estate Analyst Job Description  Company Description:Essex Financial Group ("Essex") is the largest independently-owned commercial mortgage banking firm in Colorado.  Essex specializes in commercial real estate debt and equity placement.  For over 30 years, Essex has helped its clients navigate the capital markets efficiently to identify the best capital source and structure to meet their financing needs and objectives.As a loan correspondent for 25 life insurance companies, including several on an exclusive basis, Essex is able to access non-recourse, low-interest rate capital that nobody else can provide.  While founded a...

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2018 1Q Financing Update

The start of a new year provides us with a chance to reflect on the past twelve months and identify a few key insights into the capital markets that our Borrowers can hopefully take advantage of heading into 2018.  Perhaps the most dramatic change in the debt markets in 2017 was the flattening of the yield curve, brought on by the Federal Reserve’s decision to raise its target for the short term federal funds interest rate on three separate occasions in March, June, and December. The federal funds rate is the interest rate that banks charge each other for overnight loans, and as a result, has a more direct impact on short-term interest rates. The chart above shows...

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Featured Image for 2017 Mid-Year Financing Update - Spotlight on Multifamily Lending

2017 Mid-Year Financing Update - Spotlight on Multifamily Lending

The first half of 2017 has seen tremendous lending activity from our correspondent life insurance companies, as several are ahead of plan for their 2017 loan allocations.  Essex has recently observed that life companies have been particularly competitive lending on multifamily properties, especially in the past few months.   The multifamily lending space is typically the domain of Freddie Mac and Fannie Mae, but recently, Essex has observed several life companies outperforming the two agencies, both in terms of loan proceeds and interest rate.  Two multifamily deals that Essex has worked on in the past two months have stood out in particular.  O...

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