How COVID-19 Impacts Real Estate Loans In Arizona
The economic uncertainty in this pandemic is affecting lending for commercial real estate projects.
If it’s not industrial or multifamily housing, local experts say it’s pretty tough to get financing right now. During a July webinar hosted by Valley Partnership, Adam Finkel with Tower Capital said there’s growing interest in single-family build for rent projects.
“It’s sort of a hybrid where you have, you know, the amenities of a multifamily property-maybe there’s a nice fitness center, a nice pool, you know, there’s a dog walk area but people don’t have the maintenance of a traditional single-family home,” he said.
Finkel said his company is working on a single-family build for rent project with just under 300 units in the West Valley.
Keaton Merrell with Walker & Dunlop in Phoenix said on the debt side he is not working on any office, retail or hotel projects at this time: "We’re mainly working on multifamily, we’re working on a lot of build for rent, both locally and nationally, and then we’re looking at some industrial."
Because so many banks are working with existing customers to avoid defaulting on commercial loans, Finkel said they’re hesitant to take on new borrowers. That could change, though, depending on what programs are approved in the next federal coronavirus relief bill.