Investors in residential loan portfolios routinely engage third-party experts during the bidding and acquisition process to analyze risk, data capture / validation and compliance testing.  However, the most successful investors realize that Servicing Surveillance and Servicer Reviews are critical for risk management and simultaneously enhance portfolio performance.

While loan servicing has been big business for many decades, the basics have changed little over the years.  Payments are received and processed; escrow accounts are monitored and managed for payment of real estate taxes and hazard insurance premiums; investor remittances are tracked and paid; and late payments are chased.  What has changed is the complexity of state and federal laws and regulations, the emergence of debtor friendly courts and litigious borrowers.  These factors have exponentially increased the complexity and inherent risk of debt collection procedures, which directly affect investor risk.

Debt collection and delinquency control is not what it used to be.  Servicers must ensure their collections, loss mitigation and foreclosure departments are fully trained in the ever changing landscape of local legal requirements at the municipality, county and state level.  This training includes proper procedures for collection calls, required letters and notifications pertaining to servicing transfers, delinquency resolution, foreclosure / bankruptcy steps and timeline management.  Federal laws and regulations also have overhanging risks of borrower litigated disputes, contested foreclosures and regulatory audit.

The result of this expansion in risk is the growth and importance of servicer oversight, audit and review.  Servicing surveillance creates a liaison between an investor and their servicer, providing important risk management and servicing remediation information to a broad set of stakeholders.  These include major domestic and international banks and investors, private hedge funds, legal and consulting firms, as well as both large corporate and specialized boutique servicers.

Servicing Surveillance and Servicer Reviews are not only critical for regulatory responsibilities but are also important for investment performance and measuring counter-party risk.  Best practices in the field of Servicing Surveillance and Servicer Reviews include the following:

Policy and Procedures (“P&P”) Reviews: Confirmation that servicers’ published P&Ps are revised and updated regularly to reflect changes in current industry standards, newly enacted legal requirements and published industry best practices.

Servicer Operational Reviews: Assessment of servicer’s performance and adherence to their internal P&Ps, stand-alone Servicing Agreements and/or Pooling and Servicing Agreements.

Servicer Oversight: Ongoing identification of loan level systemic servicing issues needing resolution to increase loan performance and decrease loss severity.

Asset Management: Analysis of Collection and Loss Mitigation activity, for both whole loan and securitized mortgage portfolios, including loan level reviews, foreclosure and bankruptcy timeline management, and delinquency cure methods on Client-selected loan populations.

Reps and Warrants Examination: Forensic loan level review identifying possible breaches in loan seller’s representation and warrants, and highlighting non-compliance issues affecting investor recovery opportunities.

MERS Third Party Attestation: Third party review and validation of the accuracy of MERSCORP members required portfolio policy and procedures documentation and portfolio monthly self-audit and reconciliation process.

Securities Surveillance Identification and monitoring pool asset trending and stratification, providing the investor with the benefit of early identification of potential or existing problems, and recommendations for remedying any discovered issues before they affect asset quality.

Servicing Transfer QC:  Boarding oversight and critical balance reconciliations to ensure accuracy and seamless servicer-to-servicer transfer for an uninterrupted flow of servicing activities.

 

 

Mission Global delivers custom solutions to our clients for Servicing Surveillance and Servicer Reviews by leveraging our deep transactional experience, proprietary technology, subject matter expertise and best-in-class talent.  Click here to learn more.

Despite the loan’s quirks, the borrower found a large life insurance company delighted to take on the risk. Mission Capital’s Alex Draganiuk discusses with Globe Street.

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A Borrower Funds A Small, Self-Liquidating Loan Outside Of CMBS

JUNE 19, 2017 | BY ERIKA MORPHY

WASHINGTON, DC – A few years ago Ashley Capital, a New York City-based real estate firm, purchased a building called the Interchange Business Center. A 792,000- square foot industrial property located on a 55-acre site in La Vergne, TN, it was a former Whirlpool manufacturing site about 16% occupied by the time Ashley Capital acquired it.

Ashley did a gut renovation on the property and then, recently, went looking to place permanent financing on it. The size of the loan it wanted was not very large but some of the demands by the borrower made the transaction less than vanilla. Still, eventually it found what it was looking for, despite the tightening capital market. Or perhaps that should be it found what it was looking for because of the tightening market. Ultimately Ashley Capital realized all of its demands because its lender recognized what a great sponsor it is and the building itself is a good investment, Alex Draganiuk, director of the Debt and Equity Finance Group for Mission Capital Advisors tells GlobeSt.com.

Briefly, the building’s repositioning, along with its convenient access to the area’s major freeways, brought it to full occupancy. Today the Interchange Business Center is tenanted by Penske Logistics, Amer Sports Company, Singer Sewing Company, and Fulfillment Supply Innovation.

This story should be a shot in the arm for borrowers with smaller-sized loans, especially as the CMBS market — where most such financing get done — remains uncertain and the policy environment for CRE not as clear as one might hope.

What Ashley Capital Wanted

As Mission Capital took the Ashley Capital loan to market there were some constraints the borrower had put in place. It didn’t want to take all of the equity out of the project although there was a cash out, Draganiuk says. It also wanted a 15-year or 20-year term. Most permanent loans, of course, are ten-year fixed with a 25-year amortization, per the CMBS market. There were other elements as well that made the deal a bit unusual.

One was the size itself, which was $18 million.

“Eighteen million dollars is a tricky size,” Draganiuk says. “It is a tweener.” He explains that some life insurance companies — one obvious lending source — top out at $15 million per loan, while others don’t start until $20 million to $25 million. And of course at the higher end there is a broader array of lenders.

The other was that Mission Capital was placing it directly. Oftentimes insurance companies will not look at deals offered directly from brokers, Draganiuk says. Deals typically must go through a correspondent network of brokers that screen the transactions for insurance companies, he says.
Mission Capital only reps owners or borrowers on an exclusive basis, which means the lenders know the deal has been fully vetted and they can rely on the information Mission Capital provides about the borrower, Draganiuk says.

The third oddity about this loan is that it is self-liquidating — that is, the borrower wants it paid off by the end of the term. This in itself may not be uncommon but it is less common to get a broker to arrange it.

Many Offers

In the end none of that matter to lenders. Mission Capital received a number of competitive offers from lenders, and structured “a very favorable long-term deal with fantastic terms,” Draganiuk says.

A major life insurance company won the deal, which is not a surprise as the life insurance market is usually the beneficiary of volatility or uncertainty in the CMBS market. But then, life companies also come with their own set of constraints. Yet, “we were even able to negotiate the ability to upsize the loan on multiple occasions down the road, if desired,” Draganiuk said — yet another off-the-beaten track aspect to this loan.

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Hoteliers who procure a ramp loan after renovating and prior to securing permanent financing are essentially cutting the effective interest rates by hundreds of basis points, Mission Capital’s Alex Draganiuk tells GlobeSt.com.

View the full article here: [Link] [PDF Download]

 

 

Why Post-Renovation Ramp Loans Are A Smart Move

JUNE 13, 2017 | BY CARRIE ROSSENFELD

SAN DIEGO—Hoteliers who procure a ramp loan after renovating and prior to securing permanent financing are essentially cutting the effective interest rates by hundreds of basis points, Mission Capital’s Alex Draganiuk tells GlobeSt.com.

Draganiuk: “Lenders need comfort with a hotel and confidence that the recent renovations are something guests will be attracted to, and which will yield improved property cash flow.”

SAN DIEGO—Hoteliers who procure a ramp loan after renovating and prior to securing permanent financing are essentially cutting the effective interest rates by hundreds of basis points, Alex Draganiuk, director in the debt and equity finance group at Mission Capital Advisors, tells GlobeSt.com. The firm’s team of Draganiuk, Gregg Applefield and Lexington Henn recently represented property owner SD Carmel Hotel Partners LLC in securing a three-year loan from a private- equity fund as a $20.75-million ramp loan for the Hotel Karlan, a 174-key, soft- branded DoubleTree by Hilton located in northern San Diego. The first-mortgage financing will replace the property’s renovation loan and a preferred-equity loan.

After acquiring the property in 2014, the sponsor implemented comprehensive renovations to the property, enhancing guestrooms, common areas, food-and-beverage outlets and meeting and spa facilities.

According to Applefield, “In today’s market, it’s not uncommon for hoteliers to procure a ramp loan post-renovation prior to securing permanent financing, and the sponsor turned to us because of our extensive experience in this arena. Through a strong marketing effort, we were able to provide the sponsor with numerous competitive offers, including fixed-rate and floating-rate options with very high leverage for a hotel.”

The multimillion-dollar renovation includes remodeled guestrooms, a new dining concept, completely upgraded state-of-the-art spa with fitness center and two upgraded pools with outdoor cabanas. Hotel Karlan also features six distinct meeting spaces, totaling more than 14,000 square feet, as well as a pre-function space and an event lawn for weddings, musical performances, and other social events. Additionally, the hotel features a 4,000-square-foot ballroom.

We spoke with Draganiuk about the ramp loan and any obstacles to getting one.

GlobeSt.com: Why is it a smart move for hoteliers to procure a ramp loan post- renovation prior to securing permanent financing?

Draganiuk: Most of the ramp loans we have arranged are taking out higher-cost-of- capital non-recourse construction or renovation loans, so we are effectively cutting the effective interest rates by hundreds of basis points for our clients. In recent years, many hotel deals have included renovation components as buyers have attempted to improve or rebrand their assets. When financing an acquisition with a renovation, lenders are typically underwriting a combination of a lower in-place net operating income, as well as a potential disruption in cash flow, which can constrain the amount of debt lenders are willing lend, while yielding a higher interest rate. After the renovation is complete, the cash flow rarely stabilizes immediately, as it takes some time to reap the benefits of the renovation, and the owner is usually not yet able to secure a permanent loan, which typically requires a good nine to 12 months of stabilized operating history. At this stage, a ramp loan becomes appropriate, as refinancing the property can allow you to obtain additional loan proceeds, a reduction in rate, and/or eliminate any contingent liabilities related to a renovation or construction loan.

Hotel Karlan has undergone a multimillion-dollar renovation that includes remodeled guestrooms, a new dining concept, completely upgraded state-of-the-art spa with fitness center and two upgraded pools with outdoor cabanas.

GlobeSt.com: What are the obstacles, if any, to getting this type of loan?

Draganiuk: The primary obstacles with obtaining a ramp loan immediately post-renovation include proof of concept, limited in-place cash flow, and the potential recapture of equity invested in a property. Lenders need comfort with a hotel and confidence that the recent renovations are something guests will be attracted to, and which will yield improved property cash flow. To convince lenders that a sponsor is going to be able to increase performance, we work closely with our clients to study the market extensively. We then compare the property to competing hotels and explain how the reinvestment will enable it to outperform competition or at least sufficiently penetrate its new competitive set. We also use quantitative metrics to build a story showing that, while cash flow is not fully stabilized, there are a variety of strategies the owner can implement to achieve his business plan and meet projected performance levels.

GlobeSt.com: What else should our readers know about ramp loans in these situations?

Draganiuk: In addition to traditional lenders, there are a number of new entrants in the space. Many lenders prefer the opportunity to lend on assets that have already successfully completed the initial component of their business plan, because they have limited uncertainty compared with a construction/renovation project. Additionally, lenders are often looking to underwrite hotels at today’s room rates, at market-level operating margins, without assuming a hotel is significantly outperforming competitors. To the extent the underwritten metrics work at these levels, lenders are more willing to take out a construction or renovation loan with a new ramp loan.

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June 14, 2017

Chicago-based hospitality investor AJ Capital refinanced a portfolio of nine hotels with $275 million from Blackstone Real Estate Debt Strategies, according to a press release from the borrower.

The hotels, part of the college town-focused Graduate Hotels brand, are located in Ann Arbor, Mich.; Athens, Ga.; Berkeley, Calif.; Charlottesville, Va; Lincoln, Neb.; Madison, Wis.; Oxford, Miss.; Richmond, Va. and Tempe, Ariz. Altogether, the portfolio holds 1,388 rooms.

The five-year, floating rate loan was brokered by Eastdil Secured, according to a representative for the borrower.

AJ Capital launched the Graduate brand in 2014.

In February of this year, AJ Capital closed nearly $100 million in a mix of recourse and non-recourse funding from two undisclosed debt funds to convert two other Graduate Hotels projects, which will be located in Minneapolis and Seattle. That deal was brokered by Mission Capital Advisors.

AJ Capital plans seven more Graduate Hotels locations including on New York City’s Roosevelt Island, which will serve Cornell Tech‘s new campus on the island, the first phase of which will open in September.

See more…

June 13, 2017

Economists overwhelmingly predict a short-term interest rate hike coming this week following the Federal Reserve’s two-day board meeting on Tuesday and Wednesday.


Should the Fed proceed as projected and bump its benchmark rate by a quarter point to a range of 1% to 1.25%, it will mark the fourth move made since December 2015. Bisnow reached out to commercial real estate experts to take their pulse on the current economic environment and how a rate boost, coupled with the volatility plaguing Washington, will affect the industry. From compressed cap rates to reduced deal flow, this is what industry experts had to say.

“When we look at the recent rate hikes, the Fed waited a year after December 2015 to raise rates last December, but that really wasn’t about our economy — it was due to a range of geopolitical issues. From the Chinese stock sell-off in the beginning of the year, which drove the S&P down precipitously, to Brexit to the raucous U.S. elections, 2016 was a tumultuous year headlined by non-economic issues; the result was that the Fed chose to keep rates low, despite strong economic performance.

“With unemployment at 4.3%, its lowest level in 16 years, and the economy performing well across the board, there’s every reason to believe that the economy is prepared for another rate hike.

“Following the most recent rate hikes, we’ve seen cap rates stay tight, as high liquidity and strong foreign investment activity have counteracted the interest rate rise. The Fed hiking rates further is really a signal that the economy is in a period of growth. While borrowing costs will clearly rise, the strong economy may also give investors the ability to achieve higher rents (in all asset classes). Because of this, we don’t expect to see significant moves in terms of either valuations or cap rates.”

Jillian Mariutti, Mission Capital Advisors debt and equity broker

“When we look at the recent rate hikes, the Fed waited a year after December 2015 to raise rates last December, but that really wasn’t about our economy — it was due to a range of geopolitical issues. From the Chinese stock sell-off in the beginning of the year, which drove the S&P down precipitously, to Brexit to the raucous U.S. elections, 2016 was a tumultuous year headlined by non-economic issues; the result was that the Fed chose to keep rates low, despite strong economic performance.

“With unemployment at 4.3%, its lowest level in 16 years, and the economy performing well across the board, there’s every reason to believe that the economy is prepared for another rate hike.

“Following the most recent rate hikes, we’ve seen cap rates stay tight, as high liquidity and strong foreign investment activity have counteracted the interest rate rise. The Fed hiking rates further is really a signal that the economy is in a period of growth. While borrowing costs will clearly rise, the strong economy may also give investors the ability to achieve higher rents (in all asset classes). Because of this, we don’t expect to see significant moves in terms of either valuations or cap rates.”

Chris Muoio, Ten-X quantitative strategist

“The commercial real estate market has seen deal volume drop in recent quarters as rising interest rates have increased financing costs and caused a divergence in pricing expectations among buyers and sellers. This was particularly affected by the spike in rates seen towards the end of 2016. The sudden nature of the shift in rates caused some deals that were agreed upon to be scuttled or renegotiated. Pricing has remained steady near cycle highs as cap rate spreads compressed to offset the rise in rates for the most part, but growth has plateaued, as the tailwind from interest rates has dissipated and the growth in fundamentals has cooled in many sectors.

“We believe the economy is prepared for at least one more hike this year, and possibly two … A rate hike in June feels fully baked into interest rate markets, and we would imagine most commercial real estate investors are prepared for this eventuality. Cap rate spreads would likely compress slightly to offset the modest rise, and we wouldn’t imagine a substantive effect on volumes due to the visibility around the move.

“With the tailwind of falling rates disappearing, fundamentals will become more important to pricing. This makes the hotel and retail sectors most vulnerable, as they have struggled to generate [net operating income]. Apartment is also potentially vulnerable as it has the tightest cap rate spreads, begging the question of how much more compression is possible, but apartment fundamentals have been solid thus far.”

Chris Thornberg, Beacon Economics principal

“Actually rates have barely budged and they are already fading from the Trump bump. The 10-year is hovering barely above 2% currently. As such I would be hard-pressed to call this a rising interest rate environment.

“If they raise (which may not happen), the real question is how much of a spillover [will there be] into long-run rates. The primary issue is the yield curve. If they do keep tightening, it will put the squeeze mainly on banks and other lenders. Banks have already become shy of construction and commercial lending — both in terms of volumes and spread. Tighter credit will have some dampening effect on the industry — but it’s not the interest rate, rather credit availability.

“The sectors that will see the biggest hit from tighter credit are those already on the front lines: construction and multifamily.”

Rajeev Dhawan, Georgia State University/J. Mack Robinson College of Business director of economic forecasting

“This June rate hike has been telegraphed for a while, but the Fed is now becoming cautious about any more hikes this year as some of their recent speeches have broadly hinted.

“Rate hikes are almost always in response to the economy running above its potential growth, and the evidence of that has been very mixed in recent months. Throw in the D.C. politics and the picture gets muddy when you look ahead. Has that impacted deal-making in CRE? It certainly hasn’t helped.

“Remember, foreign investment in domestic real estate deals is the icing on the cake and at some coastal cities it may be the entire cake. That is the flip side of the trade deficits … we run with our major trade partners, such as Germany, China, Mexico and the EU as a whole. Any impediments to trade, promised during the campaign time, which are now being considered, will not be good for the real estate sector as a whole, especially in the coastal markets. These areas should brace themselves for the inevitable ‘trade skirmishes’ later this year.”

Raymond Torto, Harvard Graduate School Of Design lecturer

“REITs indices kept pace with the general market in the last six months [and were] even a bit better as the assumption [took hold] that a better economy will be good for real estate.

“The economy can handle a rate increase, [though it remains] unclear if turmoil in D.C. will undermine confidence and the economy. “There has been no impact to date on [property valuations] as prices have held during the first half of the year. Volume is down, reflecting a pause in buying.”

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Mission Capital Refinances Existing Debt on Fully-Occupied, Recently Upgraded Industrial Property

Mission Capital Advisors has arranged an $18-million non-recourse loan for Ashley Capital to refinance the Interchange Business Center, a 792,000-square-foot industrial property strategically located on a 55-acre site in La Vergne, Tennessee. Mission Capital’s team of Gregg Applefield, Alex Draganiuk, Lexington Henn, and Eugene Shevaldin represented the sponsor in arranging the loan.

In 2014, New York City-based Ashley Capital purchased the property from Whirlpool, which had used the property to manufacture KitchenAid appliances. After acquiring the largely vacant property, Ashley Capital made large-scale renovations, replacing the roof, incorporating additional dock doors, upgrading the building’s heating and cooling, completing the construction of office spaces and repainting the entire property.

This repositioning, coupled with the property’s convenient access to the area’s major freeways, enabled Ashley to attract numerous new tenants and bring the Interchange Business Center to full occupancy. Current tenants include Penske Logistics, Amer Sports Company, Singer Sewing Company, and Fulfillment Supply Innovation.

“Given the successful turnaround of the property and the sponsor’s track record, we received numerous competitive offers from lenders, and ultimately structured a very favorable long-term deal with fantastic terms. We were even able to negotiate the ability to upsize the loan on multiple occasions down the road, if desired,” said Alex Draganiuk.

“Upon achieving stabilization, we felt it was an opportune time to seek out long-term, non-recourse financing, particularly given the low interest rate environment,” said Lori Roth, senior managing director of finance at Ashley Capital. “Mission Capital led the process seamlessly and provided us with a menu of options. We had the opportunity to choose among quotes with different maturity dates, amortization schedules, pricing and other attractive features, including prepayment flexibility and the ability to upsize the loan in the future.”

Founded in 1984, Ashley Capital is one of the largest privately held real estate investment companies in the United States. Based in New York, the firm focuses on acquiring and repositioning office and industrial assets as well ground-up development. Their current portfolio includes over 26 million square feet of space throughout the eastern half of the US.


Mission Capital Advisors has arranged an $18 million non-recourse loan for Ashley Capital to refinance the Interchange Business Center

July 14, 2017

Mission Capital Advisors has arranged an $18 million non-recourse loan for Ashley Capital to refinance the Interchange Business Center, a 792,000-square-foot industrial property on a 55-acre site in La Vergne, Tennessee.

Mission Capital’s team of Gregg Applefield, Alex Draganiuk, Lexington Henn and Eugene Shevaldin represented the sponsor in arranging the loan.

In 2014, New York City-based Ashley Capital purchased the property from Whirlpool, which had used the property to manufacture KitchenAid appliances. After acquiring the largely vacant property, Ashley Capital made large-scale renovations, replacing the roof, incorporating additional dock doors, upgrading the building’s heating and cooling, completing the construction of office spaces and repainting the entire property.

This repositioning, coupled with the property’s access to the area’s major freeways, enabled Ashley to attract numerous new tenants and bring the Interchange Business Center to full occupancy. Current tenants include Penske Logistics, Amer Sports Company, Singer Sewing Company and Fulfillment Supply Innovation.

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Mission’s Debt & Equity Finance Group secures strong terms for refinancing of century-old landmark

Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged an $80-million, non-recourse, structured loan for the Chicago Athletic Association (“CAA”) hotel, a historic 241-key lifestyle hotel located at 12 South Michigan Avenue in Downtown Chicago.

Mission Capital’s team of Jordan Ray, Ari Hirt, Steven Buchwald and David Behmoaras represented a joint venture of AJ Capital Partners, Geolo Capital and Agman in securing the loan from Deutsche Bank. The partnership will use the loan proceeds to retire the construction loan on the property – a landmarked building that served as an elite private men’s athletic club from the time it opened in 1893 until 2007. After purchasing the historic building in 2013, ownership meticulously restored the property before launching the award-winning boutique hotel.

“The market for this transaction was fairly deep – with varying levels of structure and nuance,” Ray said. “Pricing was competitive, and ultimately our client awarded the deal to Deutsche Bank.

Located on a prime portion of South Michigan Avenue, the property is directly across the street from Millennium Park, providing guests with sweeping views of both the park and Lake Michigan. Situated within Chicago’s Central Business District, the hotel is proximate to an abundance of leisure destinations, including museums and academic and cultural institutions.

The hotel’s seven innovative food and beverage outlets include Cindy’s Rooftop, a critically-acclaimed indoor/outdoor rooftop restaurant and bar offering unencumbered views of Millennium Park and Lake Michigan; the Game Room, a nostalgic playful space featuring a bocce court, billiards and shuffleboard; the Cherry Circle Room, Land & Sea Department’s James Beard Award-winning restaurant; the Milk Room, an intimate eight-seat speakeasy serving rare spirts; the Drawing Room; a ground-floor Shake Shack, the only one in the world to provide in-room dining service; and Fair Grounds, which provides an unmatched offering of fair-trade coffee and beverages.

“This is an attractive asset,” Hirt noted. “The market we created understood that the property has significant upside potential. We received some very strong bids, including several with higher leverage, but we ultimately locked in an $80-million structured loan, which proved the best fit for ownership.”

Mission Capital Advisors is one of the most active advisory firms in the nation, arranging financing for all real estate asset classes.

Hospitality Deals and Acquisitions from June 2017

June 14, 2017

Mission Capital Advisors announced that its Debt and Equity Finance Group has arranged an $80-million, non-recourse, structured loan for the Chicago Athletic Association hotel, a historic 241-key lifestyle hotel located at 12 South Michigan Avenue in Downtown Chicago. Mission Capital’s team—Jordan Ray, Ari Hirt, Steven Buchwald, and David Behmoaras—represented a joint venture of AJ Capital Partners, Geolo Capital, and Agman in securing the loan from Deutsche Bank. The partnership will use the loan proceeds to retire the construction loan on the landmarked building that served as an elite private men’s athletic club from the time it opened in 1893 until 2007. After purchasing the historic building in 2013, ownership meticulously restored the property before launching the award-winning boutique hotel.

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June 6, 2017

Even as the Federal Reserve hikes interest rates, average yields on investments in commercial real estate have stayed low in New York City. That’s because real estate in New York keeps becoming more desirable.

“Capitalization rates in New York City, even compared to just one year ago, have remained stable as property values have continued to rise,” said Jillian Mariutti, director at Mission Capital Advisors. (Cap rates represent the income from a property as a percentage of the sale price.) The average cap rate for New York City Class-A office properties was 4.3% in 2016, and has held steady at the same rate this year, according to Mariutti.

“the investment demand, especially from foreign investors who are eying top markets such as New York City, has helped counteract the rise in interest rates we saw this past year,” said Mariutti.

Also, potential buyers in New York have lots of choices for financing. “The availability of capital today, in particular in New York City across all asset classes, is one of the key factor’s that’s driving this trend and keeping cap rates tight,” said Mariutti.

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