Thank you to our presenters Bill Suenkens, US Bank, Ivan Gamboa, Tri City National Bank, Rickey Shneyder, CRUX Commercial Partners, Adam Newman, Landmark Credit Union & Dan Brandt with Old National Bank for providing your time and knowledge to our members. Due to high attendance, we moved the event & packed the Schlitz Park Auditorium. Thank you to Sam Denny for providing us with this great space.
A few takeaways:
- The current market has a lot of fluctuation compared to historical time.
- Proactively addressing loans with 12-18 month maturities.
- Industrial and Multi-Family are most active.
- Industrial rents really moved up as well due to strong demand, not sure if that is sustainable.
- Spec projects fared better than BTS because the developers underwrote with a wider spread and have been able to better absorb increased interest rates.
- Increased scrutiny for annual Base Rent increases.
- It’s important to educate borrowers on why liquidity is important and understand the relationship with your lender is a give-and-take.
- Focus on better understanding a tenants’s commitment (investment in facility) and their credit.
- Presenting banks are saving the best terms for those who have a close relationship with the bank. Relationship lending is key, repeat borrowers and customers of the lender (deposits) receive the best terms and probability of getting a loan.
- Nothing is scarier than when a tenant is ignoring what the bank identifies as a risk.
- Big push on risk-based capital
- Be organized and present all information from the beginning. Time is not your friend, be sure to underwrite for movement between contact, due diligence and closing.
- The borrower/banker relationship has shifted, but so has the buyer/seller relationship
- A lot of demand and limited supply – put it all out there, check every box and provide all the info
- Deals are still getting done and the banks are still working with the clients to provide the best service they can, be patient
- A collective focus on serving existing clients.