Found 5 blog entries tagged as commercial real estate.

In the world of commercial real estate, the Debt Service Coverage Ratio (DSCR) is a critical metric that plays a pivotal role in the refinancing of properties. A DSCR lower than 1.2 often signals trouble, and recent trends across the country have shown an alarming 602% increase in properties grappling with this issue. However, the impact is not uniform across the board, as we'll see in the case of Connecticut, particularly in New London County.

National Context: Nationally, the picture is stark. In just the last 30 days, properties in distress have skyrocketed from 5,562 to a staggering 33,495, covering about 1.5 billion square feet of space. This surge reflects a significant shift in the commercial property landscape, indicating a broad-scale…

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The commercial real estate market operates within two distinct segments: off-market and on-market transactions. Each segment has its unique characteristics, advantages, and disadvantages, catering to different types of investors and property owners.


Off-market transactions refer to commercial properties that are bought and sold without being publicly advertised or listed on popular real estate websites like Crexi and Loopnet. These deals often occur through personal connections, word of mouth, or specialized brokers with extensive industry networks. Off-market properties may exchange hands before the general public becomes aware of their availability, offering several advantages: 

Less competition: Off-market transactions can allow…

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Bridge Loan

Commercial real estate projects can be a lucrative investment opportunity for those who are willing to take on the associated risks. While financing options for these projects vary, bridge loans are often used to cover the gap between the initial investment and the eventual long-term financing. However, recent trends in the market have shown a rise in bridge loans with radically lower interest rates than the current rate. This may seem like an excellent opportunity to save on interest costs, but it poses significant risks to investors and lenders alike.

First, it's essential to understand what a bridge loan is. A bridge loan is a short-term loan used to finance the gap between the purchase of a property and long-term financing. Typically, these…

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A 1031 exchange, also known as a like-kind exchange or a Starker exchange, is a tax strategy that allows investors to defer paying capital gains taxes on the sale of a property. This is done by reinvesting the proceeds from the sale into a similar property.

To qualify for a 1031 exchange, the property being sold and the property being purchased must be considered "like-kind," according to the IRS. This generally means that the properties must be used for the same purpose, such as for investment or business purposes. The properties do not need to be identical, but they must be of a similar type or nature.

There are several benefits to using a 1031 exchange. The most significant benefit is the ability to defer paying…

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New London County Multi Family Rents

The vacancy rate in the New London Submarket has remained stable over the past year, but at 2.6%, is somewhat below the long-term average. While developers have been active in recent years, nothing has been delivered over the past 12 months. But construction has started back up, and about 340 units are underway, which will substantially expand the existing inventory. Rents have increased by an impressive 7.9% over the past year, which significantly exceeds the average annual growth of 4.0% over the past decade. Investors have been active in the New London Submarket over the past three years. The market price, which is an estimated price of all properties in the submarket, has risen dramatically over that time period and now stands at $152,994/unit.

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