Capital Markets See Pricing Volatility
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Elliot Eichner: “There is still a lot of liquidity in the market. We haven’t had any lenders come and tell us that they are out of the market.”
LOS ANGELES—The capital markets are showing some pricing volatility, according to Elliot Eichner, a principal at Sonnenblick-Eichner. Eichner recently secured $236.7 million in first mortgage financing for Provenance Hotels to acquire a seven-property hotel portfolio. While he saw competition for the deal and plenty of liquidity, he also said that pricing in the capital markets has become volatile.
In the debt market for commercial real estate, there is volatility, and a lot of lenders don’t know how to price because the pricing is moving. But there is still a lot of liquidity in the market. No one has said to us that they aren’t lending, whether it is a fixed-rate mortgage or bridge loan,” Eichner tells GlobeSt.com, adding that a lot of this is because of economic volatility. “This market is volatile. We have huge swings in the stock market; oil is down to $30 a barrel. There is a lot of uncertainty in the market, and that boils down to real estate and the capital markets.”…
