ICSC @ Florida 2024: Key Takeaways

Written by Ryan Maddaluna, Originator

The conference was well attended, with a strong presence of developers showcasing their ongoing and planned developments. Development was a common topic of conversation as many emphasized the scarcity of high-quality inventory on the market.

Largo engaged with numerous borrowers, many of whom expressed relief at the recent decline in treasury yields. However, a lingering question on many minds was how much of a further reduction we might see in the coming months.

Countless borrowers highlighted the challenges in securing favorable terms from local banks, particularly due to stringent deposit requirements ranging from 10% to 20%. In addition to this, many banks have become more cautious, and pulled back from lending. Many borrowers were unaware that life insurance companies are actively lending on commercial real estate and the distinct advantages their lending programs offer. These programs include competitive interest rates, starting in the 5% range, and when coupled with the absence of deposit requirements or ongoing DSCR covenants, they become a highly attractive option in today’s market. Borrowers were also pleasantly surprised to learn that these lenders have a surplus of capital available for smaller-balance transactions.

In times like these, Largo’s role as a mortgage banker becomes invaluable. Our longstanding relationships with both life companies and banks have proven crucial in securing the most competitive terms and executable terms available in the market. When faced with a transitioning market, don’t hesitate to reach out to our experts who specialize in facilitating successful debt placement from start to finish.