Top takeaways: californiamba’s 2021 western states cref

TOP TAKEAWAYS: CaliforniaMBA’s 2021 Western States CREF

September 9, 2021

The following are Slatt Capital’s primary takeaways from this week’s CaliforniaMBA’s 2021 Western States CREF Conference held at the Aria Hotel & Casino in Las Vegas, Nevada.

  • Attendance was just under 600 people. This was down from approximately 1,000 in 2019 (last in-person Western States CREF Conference). The attendees were generally positive about business and the mood/energy was good.
  • The market is extremely liquid with bank, insurance, CMBS, debt fund, credit union, and private lenders all actively looking for deals. Allocation of funds across all lender platforms is expected to increase for 2022.
  • Interest rates for typical 10-year fixed insurance company and CMBS loans generally range from 2.75-3.75%.
  • Agency lenders are still very active looking for multi-family deals of all shapes and sizes.
  • Industrial and multi-family properties continue to be the most desirable product type to lend on. Non-traditional office (life science, flex, medical) product, grocery-anchored retail, and credit single tenant net lease (STNL) are also sought-after properties.
  • Frozen for much of the COVID pandemic—the hospitality space is beginning to thaw as many lenders are now willing to look at these deals while others are now actively quoting on the conservative side.
  • Bridge lending is becoming increasingly competitive. Bridge lenders are willing to entertain the risk levels associated with light and heavy lift retail. Pricing is generally based on the level of asset risk.

Although 2020’s virtual Western States CREF Conference was a success, it was exciting to get the chance to network in person with all our close peers in the industry. We would like to thank everyone at the CaliforniaMBA for helping us in celebrating our 50th anniversary as well as all the lenders who shared kind words about this important milestone for Slatt Capital. We look forward to seeing everyone at next year’s event.