If you've been contemplating getting your feet wet with investing in a commercial property but just haven't pulled the trigger, now is the time to do it. 

We are currently living through one of the most attractive commercial real estate markets for investors. Taking advantage of some of the investment properties available today will likely yield you a return that is much better than some fixed income alternatives. When that return is paired with a strong stream of cash flow and appreciation of the property, investing in today's commercial real estate market is considered to be a very prudent decision. 

Here are some reasons why the current commercial real estate market is so attractive to investors:

Interest Rates Continue to Remain Low

As of February 2015, the Prime Rate (the rate that many banks use to price commercial loans) still continues to be 3.25 percent, which is a historically low level. LIBOR, another interest rate index that is often factored into pricing commercial loans, is also hovering at one of the lowest levels it has been in decades. While no one has a crystal ball to predict what interest rates are going to do in the future, we can feel fairly certain that interest rates have no where else to go but up. Financing a property at these historically low levels can allow you to get more for your money and make a smarter investment.

High Demand for Rentals

It makes sense that smart real estate investors follow the jobs and people. With the population and job growth that New York City has consistently offered, there is always going to be a demand for real estate rentals in the city, whether it be for a multifamily property or office space. 

If you're in tune with the latest commercial real estate trends in New York, you'll know that telecommuting is on the rise. In an effort to cut costs, more companies are allowing employees to work from home, which causes these companies to have less of a need for office space. For this reason, we'll likely see an increased demand for residential rental properties in 2015. 

Investors Are Armed With More Information to Make Smarter Purchases

A plethora of resources via the Internet are available to investors to help them more accurately determine how much a property is worth before making a purchase decision. Having this access to real-time data of a property's performance can provide a clearer picture of the risk and return the investor would be getting before making the purchase.

Avant Capital Partners can help you take advantage of the incredible opportunities available in today's commercial real estate market. Andrew Jubelt, a principal at Avant Capital Partners, is a successful investor himself, owning and operating several commercial and residential properties, which include more than 10,000 senior housing and multifamily units in the area. His extensive knowledge of New York's one-of-a-kind real estate market and financing expertise allow him to serve as a valuable partner for anyone considering investing in commercial real estate. 

Are you interested in learning more about why now is the time to invest in commercial real estate? Start the process by contacting Andrew Jubelt at 212-231-9779 or email him at ajubelt@avant-capital.com. Taking advantage of the favorable conditions of today's market will go a long way in helping you to secure a smart investment. 

Commercial real estate is one of the things that underpins modern society -- after all, businesses rarely reach beyond the smallest of sizes if they don't have an office. There are some good reasons to believe that commercial real estate is going to go crazy over the next two years, so let's look at some of the major drivers.

1. Smoother Process Management

Today's commercial enterprises are constantly striving to improve their interior performance, and they're no longer satisfied with old, out-of-date processes for real estate. New companies are starting to link buyers with proven, reliable dealers and vendors, and this pressure is encouraging the entire market to shift for the better.

Commercial real estate hasn't gone through nearly as much disruption as many other industries have. But as technology begins to enter the area and creative entrepreneurs start finding ways of improving the business model, we're expecting that to change.

2. Improved Information Sharing

How much is that office building really worth? That's a fair question for any buyer to ask, especially after they've seen real estate bubbles in other areas implode in on themselves. New ways of sharing information are making it easier for buyers to truly understand the property they're looking at, estimate its long-term value, and enhance the speed at which changes are reported to interested parties.

"Businesses are no longer satisfied with anecdotes. They want solid information and proof that they're getting a good deal."

We're expecting more investors to start jumping into the market as it takes off, and many of them will be relying on real-time data to help them make their decisions. Properties that are providing this information are more likely to be sold, and as the rest of the market realizes this, we expect to see a rush to join in. This could very well be the disruption that finally turns commercial real estate around and changes the way buyers make their decisions.

As an aside, we're also expecting to see expanded use of bridge loans among property buyers who want to get in on deals before bargains rise.As always, we recommend carefully running the numbers before buying property, and making sure you'll be making money instead of losing it.

3. Buyers Returning to the Market

This is an aspect of the real estate market that's been overlooked by many ... though they shouldn't have done so. Seven years is the amount of time it takes for most financial problems (bankruptcy, foreclosure, etc.) to be removed from people's financial records, and those buyers will be returning to the market throughout 2015-16.

We're not expecting these buyers to be major players right away, but it looks like the boom in commercial real estate will be happening just before they start re-entering the market. That's going to create a sense of anticipation and urge them to dive in, bringing a new wave of buyers and almost certainly pushing prices higher as demand grows.

We expect most buyers to be hesitant about pushing prices too far beyond the actual value of the property, but many of them may be willing to accept smaller profit margins if it means they can still acquire the property in question -- especially if they currently have no property at all.

Interested in being a part of the explosive growth of real estate? Start making your plans now and contact Andrew Jubelt at 212-231-9779 or write to him at ajubelt@avant-capital.com.Getting as much possible work done before the boom could put you in a better position to make bids, acquire commercial real estate, and take advantage of changes in the market.

Bridge loans are a very special kind of loan that offers you short-term access to large amounts of money — enough to close a deal on a new commercial property, even when under tight time constraints.

In short, bridge loans are interim loans (that is, short-term loans, generally not more than 12 months long) that use commercial real estate as the collateral for the deal. They're not intended to be a substitute for any type of long-term financing, and while they're not needed for every commercial real estate deal, these loans have often made all the difference for those using them. 

The most common uses of bridge loans are:

• Circumventing liquidity restrictions for businesses whose cash flow isn't allowing them to close a deal when they want to, and/or
• Executing an interim task (working on a balloon payment, making renovations to the building, etc.) before permanent financing can be obtained through a traditional property loan.

However, there are a few more things that borrowers should be aware of:

• Bridge loans tend to have higher rates of interest. In the long-term, using them will probably cost more than going for permanent financing right from the start. Companies who can arrange for better financing from the start should do so.
• Unlike many other kinds of loans, some bridge loans can be extended. Expect to be charged an additional fee of up to 2% if you ask for an extension, but be sure to check for this option upfront, as it may be more difficult to acquire later.
• Owing to their short-term nature, bridge loans almost never have pre-payment penalties. Many companies choose to pay off the bridge loan through their permanent financing, since this tends to cost less in the long-term.
• Despite the speed at which they can be offered, bridge loans still undergo in-depth scrutiny. Having a clear business plan can help ensure that the loan is given, and may even result in a lower interest rate for the borrower.

Andy Jubelt has helped to arrange these types of loans in many different circumstances, including for companies who didn't realize that these options were available for meeting their needs.

How Does It Work In Practice?

Consider this scenario:

A 250-unit complex in a nice area hasn't been taken care of in the last few years. In fact, most people would call it outright shabby, which may have something to do with its 35% vacancy rate. The current contract for the building is $12 million, but after $2 million in renovations over the next six months, the building could be improved to a total worth of $20 million. At that point, the rents within the building could be raised, and the improvements would likely attract new tenants despite the higher prices.

A bridge loan would be used here to secure $14 million — the contract plus the cost of renovations. The property itself becomes the collateral for the deal, and once the renovations are finished, the bridge loan is replaced by permanent financing for the full value of the building.

Andrew Jubelt can help arrange for both the bridge loan and the permanent financing, helping to narrow down the real cost of this technique for each individual case.

For more information about obtaining a bridge loan — including an expert opinion on whether or not it's right for you — contact Andrew Jubelt at 212-231-9779 or send an email to ajubelt@avant-capital.com. As a principal with Avant Capital Partners, Andrew can help you get the connections and the financing you need for your next purchase of commercial real estate.

You know how dodgy things can get when you're trolling the New York City commercial real estate market for financing. One name that has always been trusted for connecting borrowers and lenders is Andrew Jubelt.

Andrew Jubelt can help you at every stage of the game, including helping to secure a bridge loan for your investment real estate project. He has decades of experience in real estate financing, including as a developer, owner and operator of commercial real estate,

Andrew Jubelt knows his way around a real estate investment project. Moreover, with his experience as a principal at Avant Capital Partners, Jubelt brings a definite gravitas to the table.

Oftentimes in real estate financing, there will be major holdups along the way. Administratively, things could be held up ... and yet practically speaking, you still have workers on-site who need to be paid. At the very least, you're looking at hefty fines and penalties for paperwork not being filed, taxes not being paid and fees being levied, all because financing you thought was adequately in place had actually fallen through.

Bridge loans are a great tool for anyone who finds themselves in such a situation. Maybe you're receiving your financing in stages, for instance, and find yourself in the situation of having to wait days -- or even weeks -- for the financing to clear and post to your account. This is a perfect example of a situation during which a bridge loan can come in handy. Depending on your circumstance and the bridge loan officer you're working with, you may even be able to obtain financing with low or absent points. 

Another example: If you're in the predicament of wanting to close quickly on a property but find yourself waiting on the financing, a short-term bridge loan may be a good solution -- until you've retained more solid, long-term financing, of course.

Whatever your financing needs -- and whatever the length of your financing -- you should reach out to Andrew Jubelt at Avant Capital Financing. As unusual or non-standard as your circumstances may be, Andrew Jubelt has almost certainly dealt with a similar situation in the past, and he may be able to help you realize your investment real estate project goals. 

We understand that you have many choices when it comes to finding short-term financing for real estate investment projects, and that's just one reason why Andrew Jubelt will work so hard for you and your business. What's more, his years of experience and his contacts within the industry promise to move your project at a surprisingly rapid clip, and with less interruptions than some other lenders may run into.

If you'd like to learn more about obtaining a bridge loan for your commercial real estate financing, contact Andrew Jubelt today. He's available to discuss the needs of all borrowers, regardless of whether you're interested in short-term financing, original financing, or potential options to exit an existing loan. 

Andrew Jubelt is here to listen, ask questions, and help when he can.

As a principal at Avant Capital Partners, Andrew Jubelt can assist in providing a broad range of loan programs that can provide you or your clients with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com, call 212-231-9779 for more information, or reach out to AVANT via social media.

Andrew Jubelt is an experienced developer, owner, and operator of commercial real estate and is a Principal at Avant Capital Partners. Avant Capital Partners is a commercial real estate lender focused upon financing stabilized and transitional commercial real estate and offers bridge financing from $1,000,000 to $10,000,000 in select markets throughout the Northeast.

The lending program offered by Andrew Jubelt and Avant Capital Partners is designed to meet the needs of borrowers purchasing or holding properties that are being re-positioned, or otherwise redeveloped, with a clear exit strategy for loan repayment. The loans are secured by commercial real estate located in New York, Connecticut, and other Northeast Corridor markets from Washington DC to Boston.

Because of this close relationship with markets in the Northeast, one of Avant’s professional affiliations include the Greenwich Connecticut Chamber of Commerce.

Established in 1917, the Greenwich Chamber of Commerce is a non-profit business organization that has been instrumental in fostering the success of the town’s nearly 4,000 businesses. The Chamber is an advocate for the interests of the business community, as well as for maintaining the town’s quality of life and its residential integrity.

Avant Capital offers bridge loans to meet the needs of borrowers in Connecticut and elsewhere in the Northeast who are purchasing or holding properties that are being re-positioned, re-tenanted, or otherwise redeveloped. This balance sheet lending program offers competitive bridge loan rates, interest only payments and quick closings.

Capabilities include:

• Quick closings for acquisitions;
• Refinance unencumbered real estate quickly to access equity;
• Discounted note purchases and/or recapitalizations;
• Construction completion;
• Condo inventory loans;
• Development site acquisition;
• Other non-bankable transactions.

Contact Andrew Jubelt at ajubelt@avant-capital.com or at (212) 231-9779 to discuss financing for land acquisition and development, as well as construction of residential housing and commercial properties in Connecticut and other Northeast Corridor markets.

Andrew Jubelt and Avant Capital Partners provides commercial mortgages for stabilized

and in-transition investment properties nationwide. They offer permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in-transition.

Avant Capital Partners is pleased to announce the origination of a $1,300,000 bridge loan for a four-story, fully stabilized, mixed-use building located in the Brooklyn Heights neighborhood of New York City.

What is a bridge loan?

A bridge loan is interim financing for an individual or business until permanent financing or the next stage of financing is obtained and are often used for commercial real estate purchases to quickly close on a property, retrieve real estate from foreclosure, or take advantage of a short-term opportunity in order to secure long-term financing.

Why Brooklyn Heights?

The property is located on a tree-lined residential street in Brooklyn Heights, an established neighborhood adjacent to Downtown Brooklyn. It offers direct access to Manhattan, located just a quarter-mile away from the Borough Hall subway stop that serves the 2, 3, 4, 5 and R trains, and is less than a mile away from the Brooklyn Bridge.

Built circa 1901, the property sports a façade of red brick with decorative black molding at the crown of the roof. It contains a net rent-able area of 4,430 square feet, of which 3,830 square feet are above grade, and is currently divided among one medical office duplex unit and two duplex apartment units with terraces.

In addition to historical charm and direct access to the employment, cultural, and entertainment opportunities available in Manhattan, residential rents in Brooklyn Heights are about 30% lower than in Downtown Manhattan. Demand for residential and commercial real estate in Brooklyn is strong, with high occupancy and increasing rents, making the area the perfect investment locale.

Why Andrew Julbelt and Avant Capital Partners?

Avant Capital Partners is a balance sheet bridge lending firm, securing loans for commercial real estate located in New York, Connecticut, and other Northeast Corridor markets. Avant’s bridge lending program assists developers in capitalizing on time-sensitive and other non-

bankable transactions that require flexible financing.

Contact Andrew Jubelt at ajubelt@avant-capital.com or at (212) 231-9779 to discuss financing for land acquisition and development, as well as construction of residential housing and commercial properties.

In the wake of the 2008 financial crisis, in 2010 the Obama administration passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, introducing comprehensive regulation to the marketplace.

The fear of another financial crisis, manifested in high regulatory oversight, has derailed a major function of commercial banks. Stipulations of the Dodd-Frank reforms require that banks set aside more capital for each loan as coverage in the event a borrower defaults. These regulations have been particularly challenging for small-scale developers and building owners, as smaller loans are more often deemed non-bankable.

Bridge lenders such as Avant Capital Partners provide a solution to this inefficiency in the lending system by offering short-term loans to small-scale real estate developers, owners and operators.

Andrew D. Jubelt is a principal Avant Capital Partners and is an experienced developer, owner and operator of commercial real estate, including more than 10,000 multifamily and senior housing units. Avant Capital Partners offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being re-positioned, re-tenanted, improved or otherwise redeveloped

Bridge lenders have become key players in the “shadow banking system.” These non-bank financial intermediaries facilitate the creation of credit across the global financial system, but these members are not subject to regulatory oversight, and have the flexibility to front borrowers their desired capital without being held back by regulations, inspections, fines and penalties that have become commonplace in commercial banks.

Avant Capital Partners’ bridge lending program is geared towards assisting commercial and residential developers in capitalizing on time-sensitive and other non-bankable transactions that require flexible funding.

As a principal at Avant Capital Partners, Andrew Jubelt can assist in providing a broad range of loan programs that can provide you or your clients with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com, call at (212) 231-9779 for more information, or reach out to AVANT via social media.

Andy Jubelt is an experienced developer, owner and operator of commercial real estate − including more than 10,000 multifamily and senior housing units − and is a Principal at Avant Capital Partners.  AVANT Capital Partners is a direct commercial real estate lender focused upon financing stabilized and transitional commercial real estate nationwide, with its HQ offices in Greenwich CT.  The company also maintains an origination presence in New York, Dallas, Buffalo, Palm Beach and Chicago.

AVANT Capital Partners sponsored the 14th Annual Building Brooklyn Award at a ceremony and cocktail reception held on July 23, 2014. Hosted by the Brooklyn Chamber of Commerce, the Building Brooklyn Awards recognizes recently completed construction and renovation projects that enrich Brooklyn's diverse neighborhoods and economy.

According to Brooklyn Chamber of Commerce President Carlo A. Scissura,"Brooklyn's reputation for creativity and design is one of the reasons that people want to come here to work, play and live. These awards represent the very best Brooklyn has to offer in a variety of disciplines… designing and building interesting projects that enhance the Brooklyn's communities and quality of life."

Ofer Cohen, Co-Chair of the Chamber's Real Estate Committee, says of the awards "the quality and integrity of the work that went into these projects is a reflection of the skill and ability of the development teams to not only create a viable economic paradigm but also the sensibility to balance the needs and desires of the entire community."

Sponsoring this worthwhile recognition of the finest in construction and renovation projects in Brooklyn, NY is aligned with the goals of Andrew Julbelt and AVANT Capital Partners, whose team of real estate professionals possesses diverse backgrounds in all aspects of commercial real estate investment, banking, brokerage and lending across the Northeast Corridor from 
Washington DC to Boston. Their focus is on developing a direct, balance sheet lending platform, providing flexible capital solutions to borrowers and referral sources, and providing an underwriting process that protects the interests of investors.

Contact Andrew Julbelt at ajubelt@avant-capital.com or call at (212) 231-9779 to discuss AVANT’s lending program, which is designed to meet the needs of borrowers purchasing or holding properties that are being re-positioned, or otherwise redeveloped, with a clear exit strategy for loan repayment.

Andrew Jubelt is a Principal at Avant Capital Partners. Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, improved or otherwise redeveloped and has recently originated a $3,275,000 bridge loan secured by a property located at the corner of Flatbush Avenue and Lincoln Road in the Prospect Lefferts Gardens neighborhood of Brooklyn, New York. The interest-only 24-month loan carries an interest rate of 8.00% and refinanced the first mortgage. 

Demand for residential and commercial real estate in Brooklyn is strong with high occupancy and increasing rents. Under-priced land and room for upward growth in rents is the magic formula that developers seek in the next hot neighborhood.  

“Prospect-Lefferts Gardens Is ‘On the Map’” ― New York Times, March 13, 2014

Prospect Lefferts Gardens, like much of Brooklyn, is undergoing a rapid demographic change. New residential developments are attracting residents from Manhattan who enjoy more affordable rents, proximity to the 585-acre Prospect Park and public transposition access to Manhattan via the B, Q, 2 and 5 trains. Residential rents in Prospect Lefferts Gardens are about 50% lower than in Manhattan. 

Residents often cite the area as “Brooklyn’s best-kept secret,” bordering the east side of Prospect Park and down the road from the Brooklyn Botanic Garden, with a substantial and attractive historic district, and subway stops for three express trains. It’s also a community with no hard-and-fast height limits on development, and its real estate can cost as little as half that on the other side of the park 

How Andrew Jubelt can help: 

Avant Capital Partners offers a broad range of loan programs that can provide you with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com or call at (212) 231-9779 for more information about how a balance sheet lending program can offer you competitive bridge loan rates, interest only payments and quick closings. 

Capabilities of Andrew Jubelt and Avant Capital Partners include: 

• Quick closings for acquisitions 

• Refinance unencumbered real estate quickly to access equity 

• Discounted note purchases and/or recapitalizations 

• Construction completion 

• Condo inventory loans 

• Development site acquisition 

• Other non-bankable transactions

Are you interested in securing a commercial bridge loan? Contact Andrew Jubelt at (212) 231-9779 or email him at ajubelt@avant-capital.com for more information.

Financial innovation and the rise of the investor class have changed the investment landscape. One such innovation that has gained traction as an addition to retail and institutional portfolios is the investment class broadly known as structured products.

Structured products offer retail investors easy access to derivatives. Andrew Jubelt and Avant Capital Partners provide attractive risk-adjusted returns on structured debt and equity investments that provide investors diversification outside the public markets.

What Exactly Are Structured Products?

Structured products are designed to facilitate highly customized risk-return objectives and can be thought of as fixed deposits or debt with features of derivatives. This is done by taking a traditional security, such as a conventional investment-grade bond, and replacing the usual payment features (e.g. periodic coupons and final principal) with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of one or more underlying assets.

Why Use Structured Products?

The purpose of a structured product is to protect the principal and at the same time give returns linked to stocks. Does this mean all your money is invested in the stock market? The answer is no, as there is no fixed criterion.

What are the Benefits of Structured Products?

• Flexible structure;
• Adaptation to your personal risk profile;
• Different underlyings are bundled together in a single instrument;
• Access to a broader range of investment instruments.

How Can Andrew Jubelt and Avant Capital Partners Help?

Avant Capital Partners Qualified Investors include:

•         accredited investors;

•         family offices;

•         hedge/private equity funds;

•         other institutional investors and advisors.

Contact Andrew Jubelt at ajubelt@avant-capital.com or at (212) 231-9779 to discuss how a structured product can address your common wealth management concerns, helping you stay engaged in the markets and keeping your portfolio working for you.

Andrew Jubelt is an experienced developer, owner and operator of commercial real estate including more than 10,000 multifamily and senior housing units. His experience includes over 25 years of financing, development, ground-up construction and property management of medium to large-scale projects nationwide. Mr. Jubelt is a Principal at Avant Capital Partners, a real estate investment bank, advisory firm and correspondent lender for several institutional investors.

According to the spring forecast by The Crittenden Report ®, the nation’s leading report on real estate finance, good feelings will be a driving force in land loans. As construction picks up, private money lenders will be bullish on land financing nationwide.  All this optimism will result in private lenders filling the gap left behind by institutional lenders that avoid land by providing more non-recourse financing this year.

Bridge Loan Space Grows Rapidly

Bridge lenders will fund more bridge deals thanks to the strong takeout market and increasing property values. The sub-$5M bridge loan space will grow rapidly, forcing lenders to get creative on small deals and underwrite more aggressively as competition increases.

And while multifamily and single-family land will be favored, The Crittenden Report recommends watching for an expansion in land zoned for mixed-use, both residential and retail. Retail land will need a strong anchor and lenders will look closely at leasing and location when deciding on deals.

Avant Capital Can Help Borrowers During This Bullish Time

Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, or otherwise redeveloped, with a clear exit strategy for loan repayment. This balance sheet lending program offers competitive bridge loan rates, interest only payments and quick closings.

Capabilities include:

·         Quick closings for acquisitions

·         Refinance unencumbered real estate quickly to access equity

·         Discounted note purchases and/or recapitalizations

·         Construction completion

·         Condo inventory loans

·         Development site acquisition

·         Other non-bankable transactions

Contact AndrewJulbelt at ajubelt@avant-capital.com or call at (212) 231-9779 for more information on how a bridge loan may work for you.

Andrew Jubelt is an experienced developer, owner and operator of commercial real estate including more than 10,000 multifamily and senior housing units. He has over 25 years of experience which includes financing, development, ground-up construction and property management of medium to large-scale projects nationwide.

 

Mr. Jubelt is a principal at AVANT Capital Partners, a balance sheet lending firm offering bridge loans from $1,000,000 to $10,000,000. 
The loans are secured by commercial real estate located in New York, Connecticut, and other Northeast Corridor markets from,
Washington DC to Boston. 

AVANT Capital’s origination and underwriting process protects the interests of their investors, while also providing flexible capital solutions to our borrowers and referral sources.

Avant Capital offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being repositioned, re-tenanted, or otherwise redeveloped, with a clear exit strategy for loan repayment. This balance sheet lending program offers competitive bridge loan rates, interest only payments and quick closings.

Lending capabilities of Mr. Jubelt and AVANT Capital Partners include:

•         quick closings for acquisitions;

•         refinance unencumbered real estate quickly to access equity;

•         discounted not purchases and/or recapitalizations;

•         construction completion;

•         condominium inventory loans;

•         development site acquisition;

•         other non-bankable transactions.

Let AVANT Capital’s recent lending successes speak for itself:

• $4,050,000 bridge loan on a 5,691square foot townhouse in New York, NY
• $1,115,000 bridge loan
on a 10-unit cooperative in
New York, NY
• $1,900,000 bridge loan on a
65,000 square foot office
in Danbury, CT
• $1,525,000 bridge loan
on three office condominiums
in Saratoga Springs, NY
• $2,000,000 bridge loan on
85+ acres of land
in Medford, NY

Avant Capital Partners offers a broad range of loan programs that can provide you with the commercial real estate funding you need. Contact Andrew Julbelt at ajubelt@avant-capital.com or call at (212) 231-9779 for more information about how a balance sheet lending program can offer you competitive bridge loan rates, interest only payments and quick closings.

Andrew Jubelt is a Principal at Avant Capital Partners, a commercial real estate bridge lender focused upon financing transitional commercial real estate, from $1,000,000 to $10,000,000, for properties located on the east coast between Washington DC and Boston. Mr. Jubelt and Avant Capital Partners offer permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in-transition.

How can Andrew Jubelt and Avant Capital Partners help?

Avant Capital Partners offers bridge loans to meet the needs of borrowers purchasing or holding properties that are being re-positioned, re-tenanted, improved or otherwise redeveloped, with a clear exit strategy for loan repayment. This direct lending program offers competitive bridge loan rates, interest-only payments & quick closings. Benefits include:

•     Quick closings for opportunistic acquisitions;

•     Refinance unencumbered real estate quickly to gain equity for opportunistic

    Acquisitions;

•     Discounted note purchases and/or recapitalizations of under-water assets;

•     Construction completion;

•     Condo inventory loans;

•     Development site acquisition.

What Is a Bridge Loan?

A bridge loan is a type of short-term loan intended to bridge the gap between two longer-term financing loans. Companies use bridge loans when necessary to cover capital shortfalls that may otherwise occur when the company must repay one loan before it has had time to obtain a new long-term loan.

How does a bridge loan work?

The current property is utilized as collateral for the bridge loan, and in some cases, a lien is also placed on the new property. The term of the bridge loan can vary from one week to twelve months.

Principal and accrued interest on the bridge loan is paid in full when the current property is sold and settlement occurs. The buyer has the option to make monthly interest payments during the term of the loan, or at maturity in the case of a short-term loan (when the home is sold).

Fully executed copies of the sales agreements are provided to the financial institution to verify that the existing property settlement will occur. It is important to review the sales contract to determine that the contract for the sale of the existing property is contingency-free.

Advantages of a commercial bridge loan

Companies can generally more easily qualify for a bridge loan than for more long-term financing options. Lenders involved in the bridge loan industry understand that bridge loans simply provide gap financing and are not long-term solutions for the businesses, which means companies are generally more willing to pay a higher interest rate or higher loan origination fees. Bridge loan lenders customize bridge loans to suit a variety of different needs for businesses. The whole idea behind a bridge loan is that it is easy and quick to obtain, unlike a traditional long-term commercial loan.

Are you interested in securing a commercial bridge loan? Contact Andy Jubelt at (212) 231-9779 or email him at ajubelt@avant-capital.com for more information.

As an experienced developer, owner and operator of commercial real estate, including more than 10,000 multifamily and senior housing units, Andy Jubelt knows a thing or two about how energy and sustainability improvements add value to all parts of a property or company. He is a Principal at Avant Capital Partners and specializes in creative and innovative strategies to enhance the long-term value of commercial real estate.

Mr. Julbelt understands that the financial cost reductions associated with superefficient buildings — making the pursuing of energy retrofits by owners and investors the wave of the future.

Consider this: buildings in the U.S. consume a lot of energy. In fact, they use 42 percent of the nation’s primary energy and 72 percent of its electricity. Unfortunately, much of that energy is needlessly wasted through inefficient design and operation.

The following are the reasons why commercial real estate professionals such as Mr. Julbelt are recommending superefficient building retrofitting:

• Energy retrofitting can reduce a buildings’ energy consumption by 54–69 percent over business-as-usual projections through 2050. As a result, absolute energy consumption in 2050 that would be 40–60 percent less than in 2010, despite a 70-percent bigger building stock.
• A joint Rockefeller Foundation / Deutsche Bank Group 2012 study found energy savings worth four times their cost in ten-year time frame. An investment of $279 billion could yield more than $1 trillion in energy cost savings.
• Numerous studies and surveys note that, compared to market averages, energy-efficient green buildings boast reduced absenteeism, better employee health, higher occupancy rates, increased rental rates and sales prices, and decreased financial and regulatory risk.
• A growing body of statistical evidence suggests that green office buildings can command rent premiums of 3–6 percent and sales price premiums of 10 percent or more.

A focus exclusively on saved energy costs overlooks other important values, known as “value beyond energy cost savings” (or VBECS). For example, risk is one of the most important factors in any deep energy retrofit capital decision and has a direct tie to VBECS. Risk is not just a soft, indirect, or non-financial consideration, but one of the most important value elements in a deep energy retrofit investment. For example, an annual $1,000 retrofit cash flow benefit with a five percent return requirement would be valued at $20,000, approximately 100 percent higher than the same $1,000 cash flow benefit valued assuming a 10 percent return requirement.

Sustainability and energy efficiency have become central concerns to regulators, employees, customers, clients, boards, and other stakeholders. Maximizing recognition of value by all stakeholders requires understanding what aspects of sustainable value are most critical to different stakeholder groups and clearly communicating these values. Andrew Julbelt understands this. Please contact Andrew Jubelt at (212) 231-9779 for more information about how energy and sustainability improvements add value to a commercial property.

As an experienced developer, no one is more acutely aware of the need for developers to secure bridge and permanent financing for multifamily and commercial properties, at competitive rates, than Mr. Andrew Julbelt. Mr. Jubelt is a principal at AVANT Capital Partners, bringing his years of broad based experience to the process of acquisition financing and recapitalization of under-water projects to this a real estate advisory firm and lender.

AVANT Capital Partners was recently featured in the New York Real Estate Journal in their role of facilitating permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition. The New York Real Estate Journal provides the latest commercial real estate news for the state of New York, profiling the most influential companies and people in the real estate industry.

The article profiled the $1.4 million bridge loan secured by a condominium portfolio originated by AVANT Capital Partners. The 24-month loan carries an interest rate of 10.75 percent, facilitating a discounted construction loan payoff for the original developer of the project.

The 13-story building located in Brooklyn consists of a vacant ground floor retail condominium and 38 residential condominiums that were completed and brought to market in 2009. The property, a former piano factory, was originally built in 1903.

Please contact Andy Jubelt at (212) 231-9779 or email Avant Capital Partners at info@avcapital.net to learn more about permanent financing solutions for stabilized assets and bridge or interim loans for properties that are in transition.

Andrew Jubelt is a principal at AVANT Capital Partners, bringing his years of broad based experience to the process of acquisition financing and recapitalization of under-water projects to this a real estate advisory firm and lender.

Avant Capital Partners was recently featured in the November issue of the Scotsman Guide regarding the “Unsung Value of Energy Retrofits.” This article explores the single largest operating expense in commercial office buildings − energy.

Energy makes up about one-third of typical operating budgets, and accounts for almost 20 percent of national greenhouse gas emissions. By becoming more energy efficient, property owners and managers can reduce operating expenses, increase property asset value, and position themselves as environmentally friendly, which these days is a very prestigious distinction and important selling proposition.

Because the burden of high energy costs often falls on the tenants, buildings with lower utility costs can garner more demand and higher rents, which will increase the property’s net operating income (NOI). Energy Star calculates that a 10 percent decrease in energy use could lead to a 1.5 percent increase in NOI.

 

There are two key energy-cost considerations:

1. Lower energy costs can drive higher rents - Lower energy costs reduce overall tenant-occupancy costs. Lower over-all occupancy costs can alleviate the crowding out of higher rents by ever-escalating utility cost reimbursements. These higher rents increase property value.
2. Lower energy costs increases building value - Buildings more profitable in cases where the landlord pays for utilities.

The cost-effective investment strategy requires capital, and although a market for energy-efficient capital investment has not been developed fully yet, government authorities have started initiatives. For example, Property Assessed Clean Energy (PACE) is a program that allows local government entities to offer sustainable energy project loans to eligible property owners. Another example is the New York City Energy Efficiency Corp. (NYCEEC). It has been established to assist New York City implement its Greener, Greater Buildings Plan by helping private building owners get energy-efficient retrofit financing.

For more information about AVANT Capital Partners lending programs focused upon financing stabilized and transitional commercial real estate nationwide, contact Andrew Jubelt at ajubelt@avant-capital.com or at (212) 231-9779.