Beyond the Surge: What Makes San Diego’s Rental Market a Prime Investment?
San Diego’s multifamily real estate market has experienced an extraordinary surge over the past decade, characterized by a remarkable 57% increase in average asking rents, significantly outstripping the national average increase of 40%. Such impressive growth is a testament to San Diego’s real estate landscape’s robust demand dynamics and immense investment potential. While several other […]
Understanding Common ALTA Endorsements
ALTA endorsements can be a confusing piece of the closing process in commercial real estate. With that being said, they are incredibly important and often requested by lenders to ensure protection for not only the asset, but also the lender and the borrower. While there are around 150 different and very specific endorsements, the average […]
The Significance of Benchmark Interest Rates and Spreads in Financial Markets
Financial markets employ benchmark interest rates as critical reference points for pricing a wide array of financial products. These benchmarks and risk premiums ascribed to them are integral to the commercial lending processes. The most widely recognized benchmark is the Secured Overnight Financing Rate (SOFR), which gained prominence as an alternative to the London Interbank […]
AB 2011
California’s cities contain a significant amount of land used for commercial purposes, and in many cases tight local land use constraints prevent such land from being converted into housing. As several prominent downtowns with a large concentration of exclusively commercial uses, most notably San Francisco and Los Angeles, have emptied during the global pandemic, policymakers […]
Estoppels and SNDAs – What Are They and Why Do You Need Them?
Estoppels and SNDAs are a vital component of the relationship between property owner and tenant in the world of commercial real estate. Understanding exactly how they protect both parties is important, as is ensuring that these documents are executed in a timely manner, given that lenders commonly require these documents to complete their closing process. […]
Modular Development – Fast Forward or Not So Fast?
Modular construction provides developers an opportunity to streamline construction, increasing efficiency, and reducing the development timeline. However, because the modular components are constructed offsite, and don’t reside at the development site, they are not a part of the construction lender’s collateral. This challenge requires both lenders and developers to consider the sufficiency of the collateral […]
Multifamily ADUs in New Construction – California’s Biggest Density Bonus of All?
By Emily Laetz Introduction A creative interpretation of California’s recently-passed legislation regarding multifamily accessory dwelling units (ADUs) looks to offer developers of new multifamily housing the opportunity to increase their projects’ maximum allowable unit density by up to 25%, a tool that planners and legislators are hoping will make a substantial dent in the state’s […]
San Diego’s Wunderkind
Introduction As the world focuses on medical and biological innovation during the COVID 19 pandemic, San Diego commercial real estate investors and developers will find it hard to ignore what is happening in Life Science today. There are landscape-changing projects in motion, office spaces are being reimagined to accommodate this use, and the residual impact […]
Structure With A Purpose (SWAPtions)
Introduction Hedging interest rates should be top-of-mind for anyone engaged in financing long term, capital intensive, illiquid assets like real estate. With rates at historical lows, many are skeptical of how long this will last, seeing only one direction for rates to eventually move, up. Some developers choose to pay a premium for the option […]
The Case for Building in Secondary Housing Markets
Given resilient apartment fundamentals, current monetary policy, and perceived risk in other asset and primary markets, multifamily development opportunities in supply-constrained and relatively affordable secondary markets are better positioned than ever to provide attractive investment opportunities. Scattered sentiment throughout the capital markets, however, exacerbates the supply/demand imbalance at the financing level, creating a unique time […]
