It appears that Florida strategists who advised investors that good times were just around the corner may have been correct. The massive numbers of foreclosures that occurred during the recession are mostly resolved, and the latest news from the Florida banking industry is that commercial real estate lending is heating up. After many years of little to no lending opportunities, banks are cautiously putting out ‘open for business’ signs.
For instance, Wells Fargo is looking closely at borrowers who want to develop properties pertaining to the industrial market, retail, multifamily rental properties, and some condominiums. In an effort to avoid some of the mistakes made during the recession, Wells Fargo is carefully vetting borrowers and looking to lend only to those with experience. That being said, the bank is optimistic that South Florida has left the downturn behind and is in now trending toward growth.
Ocean Bank confirmed that little by little, it is increasing its lending opportunities in the real estate market. Last year, the bank approved loans to developers of a few single-family homes and a couple of hotels, as well as some multifamily apartments and commercial shopping areas. These combined loans amounted to over $500 million dollars. This year, the bank has already approved funds for additional construction projects.
Developers may want to take advantage of historically low interest rates and start the process of planning commercial real estate deals. Experienced attorneys can provide assistance every step of the way, from asset-based lending and commercial mortgages through the real estate closing and drafting of property management agreements.
Miami Today, “Banks again compete for realty loans,” Marilyn Bowden, April 25, 2013
Source: Miami Today, “Banks again compete for realty loans,” Marilyn Bowden, April 25, 2013