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.

What is the current state of the real estate market?

This is a question that anybody interested in commercial real estate should be asking themselves constantly. Why? Because CRE is a constantly shifting industry, and one that is dominated by trends.

That being said, here are the top five commercial real estate trends that are both defining and reshaping the industry right now:

1. Telecommuting is in the Rise

Computers are making everything easier, including people's jobs. They are making jobs so much easier to do, in fact, that many professionals can now work from the comfort of their own homes. This, combined with the fact that many companies see a reduction in office space as an effective cost cutter, has led to a significant increase in the amount of telecommuters. Some companies are even paying employees' rent, decreasing the need for roommates.

Because of this change, one can expect that there will be a reduction in office space use, with an increased demand for residential properties.

2. Fewer Flyers, More Online Ads

Studies have shown that online marketing can produce better results at a lower cost than offline marketing. Studies have shown that a helpful blog post, for example, is 63 percent more likely to influence a purchase than a print magazine ad. This rule applies to just about every industry, including commercial real estate. Adept CRE investors are recognizing this trend, and spending their marketing dollars on online strategies instead of traditional 'interruption' marketing campaigns.

3. The Impending Millennial Surge

The Millennial generation is so numerous that they outnumber even the baby boomers, which were once the largest generation the United States had ever seen. This generation also rents a lot. They rent so often, in fact, that some people believe the widespread notion of home ownership will fade away with the Millennials. Commercial real estate experts, however, expect there to be a huge surge in millennial home purchases in the 2020s, when a large portion of this generation will be ready to settle down.

4. Small Cities are Becoming Metropolises

Many people love big cities such as New York and Los Angeles -- they have incredibly diverse cultures and they seem to operate 24 hours per day. There is just one problem: These cities are extremely expensive to live in.

However, the high demand for the easy access of an urban lifestyle -- especially by the millennial generation -- has led to interesting shifts in the culture of smaller, less bustling cities. Many small cities are transforming into 18-hour cities, which are microcosms of their much larger 24-hour counterparts. As a result, commercial real estate investments are surging in these areas.

5. A Spike in High-Tech Photography

Just about every industry, including commercial real estate, has succumbed to the influence of the web. As such, a high percentage of commercial real estate transactions begin via an online interaction. This increased use of the web has led to a high level of competition to attract the interest buyers, renters, investors, etc., especially on listing websites. In order to stand out from the crowd, people are taking better pictures of their properties. And this doesn't just mean HD photos with the latest smartphone, either. High-tech photography solutions, including DSLRs and even drones (for aerial shots) and 3-D virtual tours are becoming the norm.

. . . . . . . . . .

Commercial real estate has undoubtedly become a part of the tech boom.

As this article has shown, most of the current commercial real estate trends revolve around our burgeoning reliance on modern technology, and the digital natives who are most likely to use it (Millennials). Anybody who wants to keep up has to take technology seriously, and figure out how it can benefit their commercial real estate endeavors.

Want to learn more about how the latest CRE trends should be influencing your investment decisions? Contact Andrew Jubelt at ajubelt@avant-capital.com or 212-231-9779.

Energy retrofits are often considered to be too expensive by businesses. The surprising truth, however, is that most alterations to a building's energy structure are very affordable, as long as they're approached in the right way.

Here are seven common ways to help finance such a project:

1. PACE Loans

The Property Assessed Clean Energy (PACE) program is an ongoing initiative that allows for tax liens to be used in financing. These are especially valuable for larger projects, as they can be repaid over as many as 30 years, and nearly any profitable property can easily work that into its plans. It's worth noting that most retrofits will not take this long to pay off -- between three and five years is a normal payback period for most properties.

2. Financing From Utilities

Most utility departments run incentive programs to help property owners reduce the amount of energy they use. Not every utility company will offer major loans, but at the very least, companies can expect to save significantly on energy-efficient equipment like new lighting fixtures.

3. Tax Credits

These vary by region, but property owners will usually be able to cut some of the cost of the installation from their taxes. If the business actually pays taxes to begin with, this is effectively a direct discount in the price -- albeit one that only comes into effect when taxes would normally be due, rather than paying it off right away.

4. ESCO

The Energy Service Company (ESCO) model is one of the more recent ideas for renovating buildings. In essence, the ESCO company performs the upgrades to the building and often sells the power later on, after which they enter into a profit-sharing agreement where they are paid off over time. This is affordable for nearly any business, as long as the amount of profit shared is less than the costs saved by the retrofit. Keep in mind, however, that ESCO financing may not always be eligible for combining with other forms of financing. It's unlikely, for example, that a property owner can claim tax deductions if they're not the ones paying directly for the retrofit.

5. Leasing Equipment

While this isn't practical for large-scale projects, leasing programs (or, better, lease-to-own agreements) can provide properties with access to energy-efficient equipment at minimal up-front costs.As with ESCO financing, the goal is to ensure that the company is able to save more money through the use of the equipment than it spends for borrowing it. When this is the case, even minimally-profitable properties can afford the retrofit they've been looking for.

6. Bond Financing

This is one of the least-used methods of financing an energy retrofit, but it may become more popular in the future as companies realize its value. Private municipal or corporate bonds offer the ability to fund multiple smaller transactions and scale the costs of the retrofit to what a buyer is able to pay for.

7. Capital Expenditures

This is the most common method of financing an energy retrofit, yet businesses should consider this their final option instead of their first. Simply put, many of the opportunities listed above offer ways to reduce some or all of the costs associated with a retrofit project, and using several of these techniques (such as tax credits, utility financing and lease-to-own agreements, all at the same time) can drastically reduce the amount of capital that needs to be expended for the property. Most retrofits are too expensive to be paid off right away, so businesses planning to pay through this method should consider using loans, leases, or other pay-over-time agreements to finance the retrofit.

As a principal at Avant Capital Partners, Andrew Jubelt can advise you on any CRE energy retrofit projects you may be considering. He can also provide you or your clients with the commercial real estate funding you need. Contact Andrew Jubelt at ajubelt@avant-capital.com or call 212-231-9779.

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.

Anyone who deals professionally with commercial real estate understands the cyclical nature of the industry. In fact, it is the combination of years of experience and comprehensive knowledge that provides the right advisors with the right opportunities in both up and down markets.

The success of Avant Capital Partners is a prime example of such ongoing success. Principals such as Andrew Jubelt bring a combination of insights, experience, and market knowledge to each project evaluated. Andy Jubelt understands the essential elements of all successful real estate projects, including timing, financing, contracting and development.

Rather than theoretical knowledge, Andy is himself a successful owner and operator of multiple commercial and residential real estate transactions and projects. These include more than 10,000 senior housing and multifamily units throughout the market area.

As a principal at Avant Capital Partners, Andrew Jubelt brings his organization’s extensive financing expertise and capacity to projects throughout the nation. In addition to a broad understanding of all aspects of the commercial financing process, Avant and Jubelt specialize in creative financing approaches to unique market situations. From restructuring to improve current cash flow, to recapitalizing underwater and distressed properties, to new acquisitions, the Avant team is known for getting the job done for a wide range of clients.

Projects that require the innovative approaches dictated by New York’s one-of-a-kind market — or any need nationwide — are undertaken with relish by the professionals at Avant Capital Partners. Andy Jubelt likes to remind his clients that he never faces a problem where financing is concerned, but rather an opportunity to bring his expertise to the game, and to come up with attractive solutions in the process.

Knowledge Plus Experience Equals Profits

Many clients, both new to the market and those with many projects under the belt, learn quickly that the specialized knowledge of the Avant team brings a fresh perspective to every job. Additionally, the extensive proprietary accumulated knowledge of the New York market allows the company to prepare highly individualized reports and analysis for each of the market’s primary neighborhoods.

As a direct commercial lender, Avant Capital Partners facilitates long-term principals such as Andrew Jubelt to recommend, assemble and execute the right financing package for stabilized and transitional commercial real estate projects. This approach maximizes the probability of completing any transaction and achieving the desired financial results.

Flexible and Responsive Underwriting

Whether a project requires short-term bridge financing or long-term conventional funding, Andrew Jubelt can access the resources required with flexible underwriting options. Avant Capital Partners provides services as both a real estate investment bank and as a correspondent lender for several institutional investors. Additionally, the firm’s role as an advisor on many significant real estate ventures allows it to bring unique insights to each funding assignment.

The seasoned professionals at Avant provide a national network of experts that assist in deals that range in size from $500,000 to $30 million. The diversity of this team brings to bear expertise in all aspects of the real estate transaction, including brokerage, lending, banking, and real estate investing. These capabilities make the origination and underwriting process much smoother. It also puts a powerful ally in the corner of Avant's clients.

As a recognized underwriter, Avant Capital Partners is known for the professionalism of its principals, such as Andrew Jubelt. Whether a project requires a simple review of the numbers or a comprehensive evaluation of a detailed project proposal, lenders turn to Avant to arrive at a final loan approval.

Andrew’s capabilities often provide the important link between the needs of specific clients and the requirements of potential lenders. By developing innovative and flexible capital solutions, Andy seeks to provide the proverbial win-win solution to each project.

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.

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.