Commercial Real Estate Financing ‘Nearly Impossible’ in San Francisco

Once seen as stable assets in a balanced investment portfolio, commercial real estate securities are now largely avoided by banks in San Francisco—with traditional lenders citing excessive risk and higher short-term interest rates as reasons for declining loans, according to experts. “There’s no money out there,” Nick Slonek, global real estate firm Avison Young’s principal and regional managing director for the San Francisco area, told The Epoch Times. “The best money available is above nine percent interest and with 50 percent down, and that’s only for a bulletproof deal.” Left with few options, more borrowers are now turning to privately offered loans at higher rates and with significant origination fees—with examples of such at 12 percent interest rates and fees due on signing of 5 percent, industry analysts report....