Hot Money - What Lenders Want

In this email, PSRS Executive Vice President Michael Tanner shares two “hot money” trends and an insider tip:

1. Industrial is the “new retail”
Today, everyone shops online. Products now comes from a warehouse versus a brick-and-mortar store, so it’s driving demand for warehouse space to store and ship out these products. Industrial is also popular because it’s easy to manage. The challenge is that there just hasn’t been enough industrial space built, so what exists is in high demand across the country. For these reasons, industrial real estate is currently the preferred investment for our life companies.

2. Life companies are focusing long-term
The way life companies are doing their accounting, they are matching off liabilities – which can be life insurance policies or annuities. These liabilities tend to be long-term in nature and so they are matching debt against those long-term liabilities. Mortgages are a good place to find longer durations which they can’t find it in the bond market.

Insider Tip: Move fast if you’re a borrower, before the money is gone!
If you are a borrower, it’s important to know that life insurance companies get their allocations at the start of each year. When that money is gone, they stop lending. The best thing to do as a borrower is to do as much as you can early in the year. By the last quarter there may be no money available or what money is available is at a higher price. It’s May, so now is the time to act.

Contact us to arrange a face-to-face meeting to discuss your deal
at ICSC on May 22 or May 23.

(Time Slots are Limited)
Featured Industrial Transaction
Geary Industrial
Life Insurance Company
149,683 SF
Santa Fe Springs, CA
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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