The Buzz from ICSC

Last week, members of the PSRS team attended ICSC in Las Vegas.
Below are some key takeaways from the event:

  • Lenders are going to be relying heavily on operators ability to adapt to the shrinking big box retail stores.
    • Background: Over the past 5-6 years, big box retail has been on the decline. Those who have adapted (Best Buy for example) have been able to survive.
    • Operators who have the ability to input more equity, devise space and adapt will be in favor with lenders.
    • Lifestyle/community retail centers are thriving and should continue to do so.
  • Moving forward, the strongest credit tenants will survive. Competition for market share amongst the big box credit tenants will be fierce.
  • Over the next two years rents will be on a downward swing.

Commentary from PSRS:
In an ever changing market that calls for the ability to adapt strategies over the short and long term, our life companies provide borrowers with fixed rate locks at application with no post closing covenants.

Landlords want peace of mind and with zero post closing covenants, life companies provide just that!


Contemplating Terminating your Interest Rate Swap?
Here’s Why it Will Likely Cost You

Written by:

Derivative Logic

In decades of advising borrowers of all shapes and sizes, one topic that comes up repeatedly is the best practice for a borrower to terminate an interest rate swap when the underlying loan is paid off early. Has your bank ever told you not to worry, that you can “make money” from your interest rate swap? The following will explain that most of time, it just isn’t so.

Why Terminate an Interest Rate Swap?

  • A change in the credit provider
  • Sale of real estate or other asset
  • A sale of the business

Why Work with PSRS
  • Non-recourse financing
  • Lock rate at application
  • Terms - Floating Rate to 40 Year Fixed
  • Minimal to no reserve structure
  • Current servicing portfolio of $5.5 Billion – Fast servicing decisions
  • Nationwide coverage in the US on all commercial and multi-family real estate
  • Loan sizes from $1 Million to $100 Million+
PSRS represents 22 life insurance companies, and also works with banks, private capital and other credit facilities seeking investment in real estate secured assets.
We maintain a loan servicing portfolio that includes these life company mortgages, and we are available to provide borrowers with local customer service over the life of the loan.
PSRS Los Angeles
Founded in 1972, PSRS is one of the largest privately-held commercial mortgage banking firms in the Western United States.
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