McCallum's Musings on the Market

MCCALLUM'S MUSINGS ON THE MARKET!

Latest rise in U.S. consumer inflation won’t discourage further interest rate cutting by the Federal Reserve.
Notices of default, scheduled auctions and bank repossessions highest in last 5 years.
Property-level metrics continue to be the focus. Higher expenses (insurance, utilities, supplies & maintenance) are not offset by a $ per $ increase in rental income.
10yr Treasury Index stabilizes at 4% - suggesting new benchmark for interest rate spreads.

Call today for commercial real estate financing for year-end closings! Furious pace to year-end 2025….arm yourself with your Fury Whip!

McCallum's Music Pick: Fury Whip by High on Fire

CASE STUDY

Sacramento, CA
± 24,000 SF
Office property
$875,000
70% of purchase price
1 year loan term; interest only payments
NO appraisal required

John McCallum, Borrower’s Advocate, closed an acquisition financing requirement on a ± 24,000 SF vacant office property in Sacramento, CA. As part of the off-market sale transaction, the buyer required a financing commitment to secure the purchase agreement. Turton Commercial Real Estate secured 70% leverage to close on the 3-week purchase timeline.

FEATURED ARTICLE

VALUES PLUMMET FOR DISTRESSED OFFICE PROPERTIES

Distressed U.S. office properties have lost more than half their value, threatening billions in losses for commercial mortgage investors, according to a CoStar analysis of 270 specially serviced loans in commercial mortgage-backed securities deals that have been reappraised in the past 12 months.

John McCallum

SVP of Commercial Finance

916.573.3313

johnmccallum@turtoncre.com

CA DRE Lic #01177134

2131 Capitol Avenue, Ste 100, Sacramento CA 95816

916.573.3300 | turtoncre.com

Lic #01219637