We’ve Been Busy

2010 has been a busy year for the guys at Lighthouse Advisory Services. For 2010, we performed several commercial real estate loan portfolio valuation assignments, sold several loans, found acquisition and refinancing debt for our clients and completed several large capital market transactions. We also rolled out our Stoplight Solution in 2010 that we used to value over $1.5 billion in commercial real estate portfolios.

Over the past year, we’ve noticed an increase number of calls from credit unions that are looking to get independent third party valuations for their commercial estate exposure as their regulators are starting to require them. Not a surprise considering cap rates have widened out over the past few years and performance of the underlying collateral have steadily declined as the number of businesses closing have increased. In this quarter of 2010, the number of calls have picked up as credit unions are gearing up for their 2011 regulatory reviews, which they anticipate an independent third party review will be required of them. Though this can be a stressful process for many credit unions and banks, we created the Stoplight Solution to make things easy for them. The good news is it appears the economy and commercial real estate fundamentals are starting to recover.

Also for 4Q2010, the number of commercial real estate investors calling us to assist them in refinancing their existing holdings or obtain acquisition financing has increased. We’ve closed a deal in late 2010 and have already circled another deal to be closed in late January 2011. The commercial real estate financing market has thawed, albeit not at the levels seen several years back. Various lending intuitions are aggressively looking for deals. With billions of capital sitting on the sidelines for the past several years, it seems they are now ready to put it to use. Even CMBS shops are back with rumors of several old players coming back to the market in 2011. With the increase number of lenders coming back to the market, 2011 should be a good year for investors looking for financing. The trick is going to be finding the right lender for you.

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