Investors looking for commercial real estate opportunities in 2015 should turn their eyes toward Texas. Three of the five cities expected to be the hottest markets this year are in the Lone Star state. They benefit from having low costs of living and low costs of doing business, combined with excellent livability and employment.

Experts generally regard the following cities as the top five for commercial real estate investing opportunities in 2015:

1. Houston

Houston’s energy, education and health industries are expected to drive demand for commercial real estate, although energy has been somewhat slowed by the decline in oil prices. Trade and transportation job growth was strong last year, and it’s expected to continue to support demand for industrial space. The city has very high investment, development, and housing market expectations. It’s strong across the board, with high expectations in the industrial, retail, office, multifamily, and hotel sectors. Houston is attractive to a wide variety of real estate investors, particularly those interested in institutional investing. Real estate capital availability is predicted to be strong, as is the local economy.

2. Austin

Austin has a strong industrial base, and it's a city that enjoys a low cost of doing business. The area is thriving in the office, retail, and single-family housing sectors. It’s a popular destination for millennials and has a diverse, thriving population that attracts potential employees. It also has a relatively low cost of living. Austin is ranked a little lower than others in the top five for investment in industrial, hotels, and the multifamily sector, since it’s not a distribution hub. Locals have confidence in the strength of Austin’s economy, however, and there’s a strong level of market participation by local owners and developers.

3. San Francisco

San Francisco was also a popular commercial real estate hot spot last year, and it’s not expected to slow down in 2015. It has a strong local economy and improved domestic and international travel. San Francisco is particularly strong in hotel investment, as well as in the office and retail markets. The industrial sector is ranked somewhat lower. It also shares something in common with several other cities on the top five list – it’s popular with millennials. Housing – both multifamily and single-family sectors – are expected to be strong. A high level of available capital should keep San Francisco’s investor interest high.

4. Denver

Denver is also popular with millennials and has thriving energy and technology industries. It also has strong retail and office investment. The industrial sector is ranked somewhat lower than others, but has shown improvement. The multifamily sector is ranked somewhat lower amidst concerns of a cooling-off period, but single-family housing is stronger. Public and private investors are strongly attracted to Denver, and its strong local economy and local development community continue to work in its favor.

5. Dallas/Fort Worth

This area benefits from economic diversity that’s likely to sustain a high level of job growth. Dallas/Fort Worth has a low cost of living and doing business, both of which help fuel job growth as well as the single-family housing market. Among the top five cities, it has the highest ranked industrial sector. The multifamily housing and retail sectors are not expected to do quite as well, due to supply concerns. The market is attractive to local and institutional commercial and home developers. It has a strong local economy, available capital, and an active development community.

Andrew Jubelt, a principal at Avant Capital Partners, can advise you on commercial real estate investing and provide you with the funding you need. Contact Andrew Jubelt at ajubelt@avant-capital.com, or call 212-231-9779.

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.

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.

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.

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.

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 originates commercial mortgages nationwide for multifamily, commercial, and bridge loan transactions.

Andy Jubelt has decades of experience working not just with banks but other financial outlets and interested individuals to offer the best options for funding at more attractive rates. This can speed up the time to sale, or improve forecasts on capitalization of earnings due to increased growth possible on "value add" properties that increase in value. Experience in looking for money is the key to Mr. Jubelt’s success in using debt and equity on more than $1,000,000,000 in funding.

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, with a clear exit strategy for loan repayment. This lending program offers competitive bridge loan rates, interest-only payments & quick closings.

In the current credit environment, Avant Capital adds value to commercial real estate brokers in a number of ways: Certainty of closing: Avant can provide borrowers with a comfort level about available financing necessary before entering into purchase contracts Avant can provide brokers with preliminary program quotes for all of their listings Partnering with Avant can reduce transaction costs for your clients Partnering with Avant helps provide additional fee income to real estate brokerages Avant Capital Partners can provide both buyers and brokers with peace of mind because both parties can feel comfortable knowing that there is a certainty of execution in the closing of transactions. Please contact Andrew Jubelt at (212) 23109779 for more information about how Avant’s lending platform levels the playing field between commercial real estate broker partners and competing nationwide firms.

The current credit climate has made it more difficult for many investors to obtain commercial real estate financing. Capital is not as widely available as it had been in the past and many assets are over-leveraged and require recapitalization. Avant Capital Partners offers a range of loan programs that can provide your clients with the funding they need to improve their current cash flow, recapitalize under-water assets or acquire new commercial properties for business or investment purposes.

Mr. Jubelt and Avant Capital Partners provide bridge and permanent debt financing for multifamily and commercial properties nationwide at competitive terms to meet your clients' needs.

General loan program guidelines and terms include: 

• Senior mortgages from $500,000 to $30,000,000
• Property types include multifamily, industrial, office, retail & hospitality
• Owner Occupied real estate of all types are considered
• Fixed interest rates starting at 3.50% and up
• Low up-front costs

Why choose Andrew Jubelt and Avant Capital Partners to obtain commercial real estate financing?
We offer specialized services for developers, owners, brokers, and investors and structured solutions for all types of commercial properties. With flexibility and speed of execution, we offer a broad range of financing capabilities. The principals and directors of our firm have completed debt and equity financings in excess of $5,000,000,000.

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.