![\"Rittenhouse](\"https:\/\/www.send2press.com\/wire\/images\/18-0108-rittenhouse-capital-696x522.jpg\" "\\"Rittenhouse")
\nRittenhouse Capital CEO George Johnson believes that market conditions may be about to change and that now is the best time to take advantage of historically low interest rates.<\/p>\n
PHILADELPHIA, Pa., Jan. 8, 2018 (SEND2PRESS NEWSWIRE) — Rittenhouse Capital Advisors (RCA) is a commercial real estate finance advisor with over 60 years of combined banking experience. Currently in its fourth year of operation, Rittenhouse Capital has increased its loan production volume by a minimum of 30 percent year-over-year by delivering creative commercial financing solutions for their real estate investor clients.<\/p>\n
\nRittenhouse Capital CEO George Johnson believes that market conditions may be about to change and that now is the best time to take advantage of historically low interest rates.<\/p>\n
\u201cWe are late in the game here,\u201d Johnson says. \u201cInterest rates are still very favorable to borrowers, but we don\u2019t know how much longer that will last. The Fed is unwinding their quantitative easing, which will most definitely create upward pressure on treasury rates given the shift in that supply-demand fundamental. GDP growth was a very healthy 3.3 percent in the 3rd quarter, the fastest rate in 3 years, so inflationary pressure will start to build there as well.”<\/p>\n
\u201cThe new Tax Reform package will likely bring some economic stimulus with further inflationary pressure, so there is a lot of factors in play, all pointing to higher interest rates in the near term. When that happens, lenders may take a more conservative approach to underwriting, making it more difficult to obtain the level of loan proceeds real estate investors are looking for.\u201d<\/p>\n
Many commercial and multifamily property owners would like to capitalize on today\u2019s low interest rates, but they have existing loans that do not mature for a while, and they do not want to pay a significant pre-payment penalty to get out of these loans.<\/p>\n
\u201cA lot of commercial borrowers are not aware of some of the financing options that are available out there,\u201d Johnson continues. \u201cFor example, we have a great balance sheet product where a borrower can lock in their interest rate today for a period of up to 12 months while they burn-off any remaining prepayment penalty. This approach saves our clients a substantial amount of money as they avoid paying their prepayment penalty while also taking interest rate risk off the table.\u201d<\/p>\n
E-commerce Driving a Shift in Demand toward Multi-Unit Industrial Properties:<\/strong><\/p>\n Another factor that is currently impacting the commercial lending market is E-commerce. Companies like Amazon and Wayfair are driving demand for warehousing space. And with thousands of other companies getting in on the Ecommerce craze, multi-unit industrial properties are at a premium.<\/p>\n \u201cBeginning shortly after the \u2018great recession,\u2019 multi-family properties (e.g., apartment buildings) were very popular with buyers and the lending community, but this segment has peaked or is approaching its peak in most major markets. Supply has caught up to demand and lenders are becoming a bit more cautious.”<\/p>\n \u201cIt is a far different story with multi-unit industrial properties. More and more online retailers need warehouse space to store their products, and demand is far outpacing supply in this sector. Lenders love these properties because they are usually at full occupancy, rents are continually going up, and cashflow is strong. For this reason, there are plenty of very competitive financing options for this asset type.\u201d<\/p>\n Healthcare Real Estate in Demand with Rapidly Aging Population:<\/strong><\/p>\n In 1950, the population aged 65 and older represented 8.1 percent (or 13 million) out of the total U.S. population of 158 million. That percentage is projected to reach 13 percent (or 46 million) out of 355 million by 2030. This shift will place great demands on the nation\u2019s health-care system and spur considerable growth in the real estate segment of the healthcare industry.<\/p>\n This trend in the healthcare industry is already beginning to pick up steam now with the larger hospital systems building out or leasing real estate facilities focused on delivering specialized needs such as surgery centers, urgent care, and orthopedics, just to name a few.<\/p>\n Similar to the industrial-distribution space, the supply-demand fundamentals have swung heavily on the demand side in healthcare and the numbers would seem to indicate a good amount of runway in the current direction. As such, expect the lending community to compete aggressively to provide funding on healthcare projects as described above and also including senior living, assisted living, specialty care (nursing homes) and memory care, going forward.<\/p>\n Recent Rittenhouse Capital Transactions:<\/strong><\/p>\n Rittenhouse has helped commercial property owners with purchases and refinances across a wide range of sectors. Here is a sampling of their recent transactions:<\/p>\n \u201cWe have the expertise and lender relationships to deliver favorable financing for the full range of commercial real estate assets anywhere in the country.\u201d<\/p>\n\n