News:
Brokerage
Posted: September 4, 2009
Fed. stimulus money means savings for comm'l. R.E. clients
The American Recovery & Reinvestment Act of 2009 (ARRA) provides federal stimulus money to reduce fees on SBA loans for commercial real estate. Businesses using SBA 504 to buy their own facilities or using their facilities to collateralize SBA 7A working capital loans will realize savings until the funds are used up.
The SBA 504 loan program provides a 40% (of total project cost including renovations and soft costs) second mortgage loan to help businesses acquire or construct commercial buildings, condos or coops. The SBA 7A loan can be used for any business purpose.
Under ARRA, the buyer saves 2% upfront on loan fees when using SBA 504. Similar savings exist on the 7A loan (2-3.5% upfront savings). Such savings combined with today's low interest rates and historically low real estate prices make it very affordable for businesses to purchase their own facilities and enjoy stability, desirable location and build up of equity for their businesses and families.
Roslyn Goldmacher is the president and CEO of the Long Island Development Corp. (LIDC) and the Greater New York Development Co. (GNYDC), Bethpage, N.Y.
Tags:
Brokerage
MORE FROM Brokerage
REALM, DelShah Capital and A.M. Properties acquire 377,000 s/f CitySpire office condominium
Manhattan, NY REALM, in partnership with DelShah Capital and A.M. Properties, acquired CitySpire, a 377,000 s/f office condominium comprising 24 floors within the 70-story tower at 156 W 56th St. in Midtown. Adjacent to Central Park with transit access and amenities, CitySpire is a Class A office asset located in one of the city’s most sought-after office corridors.
Quick Hits
Columns and Thought Leadership
A fresh start - by Shallini Mehra and Amit Doshi
For the past several years, the New York City multifamily housing market has been defined by disruption. The combined impact of the HSTPA rent laws and a sharply higher interest rate environment has fundamentally reduced
The death of the generic offering memorandum: What buyers expect in 2025 - by Kimberly Zar Bloorian
There was a time when an offering memorandum (OM) was pretty bare bones, some photos, a few bullet points on income, and a rent roll thrown in at the back. That used to get the job done. Not anymore. In 2025, buyers are sharper, faster, and more selective. They’re looking
Tri-state capital migrates nationally amid regulation pressure - by Reese Weaver
New York tri-state multifamily investors are increasingly reallocating capital to less-regulated markets across the U.S. as rent control and legislative risk erode returns at home. With over 60% of New York City’s rental housing stock classified as rent-stabilized, the traditional value-add model — buying under-performing buildings,
The anticipated effect of Basel III and ISO 20022 implementation on commercial real estate - by Michael Zysman
July 1, 2025 is the deadline for US banks to begin to adopt Basel III banking standards and July 14, 2025 is the deadline for U.S. banks to adopt ISO 20022 messaging standards. Both will have a significant effect on the banking and commercial real estate (CRE) finance sectors.