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Posted: December 26, 2011
Frank Chiarello of Northeast Capital Partners
What are your predictions for commercial real estate in 2012?
We expect interest rates to remain flat, asset prices to remain high and we believe there will be little investment activity until the political landscape provides a clearer picture of what the tax code will be in 2013 and beyond.
What was your most notable project, deal or transaction in 2011? Several deals stand out. We are active in the purchase of non-performing mortgages and closed on over 30 this year. We also provide hard money financing and defaulted mortgage financing. The two most notable transactions are, a 5 million dollar warehouse credit line in default purchased from a Bank, which blanketed several properties in New York. The second is a finance deal were we were called on a Friday to close a purchase Tuesday, as the buyers lender pulled out & the buyer was facing a TOE. We provided a $1 million 1st mortgage
What are your resolutions for 2012?
To focus on larger nonperforming loans and larger hard money loans, with lower LTV's. We believe asset prices will fall in the long run, when interest rates start to rise in 2013, cap rates will have to rise putting downward pressure on prices.
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