| COMMUNITY BANKERS HAVE FUNDS TO LEND FOR COMMERCIAL REAL ESTATE More Than 150 IOREBA Professionals Learn About Financing Parameters at Dinner Program |
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 HACKENSACK, N.J., March 9, 2009 – Representatives from several of the region’s leading community banks recently spoke to an audience of more than 150 members of The Industrial and Office Real Estate Brokers Association of the New York Metropolitan Area (IOREBA) about how their organizations can fill a void in the lending arena.The speakers included Paul Heilmann, Senior Vice President of Commercial Real Estate for Columbia Bank in Fair Lawn, N.J.; Philip Romano, First Vice President of Commercial Real Estate Development for Investors Savings Bank in Short Hills, N.J.; and Ronald Shapiro, Senior Vice President and Senior Loan Officer for Union Center National Bank in Union, N.J. Their common message – although Wall Street is in trouble, and funding sources have shrunk due to the current state of the economy, community banks still have money to lend. While community banks are more selective today than in the past, these organizations are looking to build relationships with real estate developers and brokers. All agreed that terms generally involve a 75% loan-to-value ratio. On the other hand, community banks take into consideration the parameters of each individual deal combined with the potential business relationship with customers. The speakers stressed to IOREBA members and guests that they are busy with direct deals and broker deals in all property types. However, in today’s economy, not all projects are desirable. Medical arts buildings merged as a current bright spot in the commercial real estate industry, while lending for land, hospitals, golf courses, restaurants and hotels is much more difficult. As always in real estate, property and location are still key. When asked about an economic turnaround, the speakers pointed to distressed asset funds – funds that buy real estate in distressed markets – as an indicator, noting when they become active, it will be a positive sign that we are at a turning point. Compared to the rest of the nation, Heilmann noted New Jersey has “the toughest breed of real estate developers and investors in the nation. They comprise the backbone of the NJ economy and will bounce back.” “The speakers really struck a chord with our peers,” noted IOREBA President Dave Violette. “This information was valuable to our attendees, who have opportunities and continue to look for options for themselves and their clients.” IOREBA is dedicated to providing the brokerage community with a forum for networking, education and training. A mix of brokers, developers, financial service providers, attorneys and those in related real estate industry support services comprise its diversified membership. << back to news |
