PTAA Vendor Partner Jay Harris (Premier Commercial Bank) was interviewed for a story on commercial lending standards:
A high level of equity typically results in a low loan-to-value percentage in a deal. And well-structured deals with low loan-to-value percentages also tend to be serious financing contenders, says Jay Harris, executive vice president and senior lender with Premier Commercial Bank.
“The lower the loan-to-value, the better the numbers work,” Harris says.
Most banks want no more than 80 percent loan-to-value in a deal, but the deals that are getting done have closer to 70 percent loan-to-value or less, he says.
In a related story in TBJ on the lending process for a new Walgreens project in north High Point, PTAA member David Couch was also interviewed:
One of the central reasons why the 15,000-square-foot, $2 million Walgreens project at the Shoppes at Deep River in North High Point received lending approval?
In a word: credit.
“The primary driver of financing today in the retail world is the creditworthiness of the tenant, and in retail development, Walgreens carries with it a very high quality of credit worthiness,” says property owner David Couch.
Couch, a local real estate veteran, is one of the owners of the Walgreens site in High Point that was financed by Premier Commercial Bank.
Finally, PTAA member Chris Parr is featured in an article titled Multifamily Market Becomes Darling of Commercial Lending:
Wells Fargo isn’t the only large bank looking to capitalize on strong local demand for apartments.
Cantey Alexander, BB&T’s Triad regional president, says the bank’s current commercial pipeline is greater than it’s been in the past four to five years. More than half of that demand is coming from multifamily apartment projects, he says.
One example of demand is from local developer Chris Parr, who has a sizable portfolio in Winston-Salem, including an $18.5 million Stafford Place development that will boast more than 300 units. The first phase of the complex, located off Peters Creek Parkway, will be complete in 2013.
Parr says location has been a huge component in being able to secure financing.
“Banks are willing to lend on (multifamily) because they think it’s going to be a good investment for them,” he says.