Commercial Mortgages | Commercial Hard Money Lenders
                     Commerci
al  Hard 
Money  
Lenders
2625 East 14 St. Suite 209  
Brooklyn, NY, United States  
11235
[email protected]  
www.expresscapitalfinancing.com
Commercial Mortgages in the NY 
Real  Estate Market: Status 
Update
Notwithstanding the severe job losses and declining economy that  
resulted in form the March stay-at-home orders across the nation,  
actions by the federal government have supported the continued  
operation of key capital markets—albeit with reduced deal volume  
as compared to the opening months of 2020. This is especially  
true in the New York commercial mortgages sector, as data  
compiled by the Mortgage Bankers Association indicates that in  
August 2020 there was relatively little change in overall  
commercial and multifamily real estate delinquency rates and an  
overall decline in borrower inquiries and requests. These are  
positive market indicators that suggest the industry is on the road  
to recovery.
Capital markets have seen an uptick in activity due to the low-  
interest rates and favourable spreads, with lenders engaging with  
their asset management clients and pursuing numerous new  
originations. Collectively, the majority of asset classes posted  
marked improvement as compared to their subpar performance  
in April and May, where the after-effects of the initial economic  
shutdown were still fresh, and the industry was struggling to  
adapt. While liquidity in the debt markets was initially a concern in  
these early stages, that issue has begun to subside thanks in large  
part to an injection of capital from federal entities in the form of  
stimulus packages. Core properties with long median lease terms  
are attracting the greatest amount of private capital. Assets that  
were under contract prior to the stay-at-home orders and  
economic turbulence have, for the most part, continued to close  
at their pre-COVID-19 listing prices, although both deal volume  
and velocity have declined as expected.
Hotel and retail properties continue to exhibit the greatest  
financial stress; however, the delinquency rate for lodging  
properties fell in August for the second month in a row, while the  
delinquency rate for retail properties spiked at a new high since  
the onset of the pandemic. MBA data indicated that the share of  
lodging property loan balances that were non-current fell to 23.4%  
in August (from 26.2% in July and 27.3% in June). For retail  
property loans, delinquencies rose to 15.0% in August (from  
13.9% in July and 14.7% in June).
While the office commercial mortgages sector has been less active  
than multifamily, many banks continue to lend to office borrowers.  
Although the recent transition to work-at-home positions by the  
majority of companies might have signalled trouble for this sector,  
office tenants typically have long-term leases that support  
underwriting. There is still some degree of uncertainty regarding  
the post-pandemic office market. Even though vacancies will  
definitely increase in the next year, there is not a widespread  
consensus amongst real estate professionals as to whether there  
will be a long-term drop in office occupancy. In the short term, the  
demand for increased office space in order to comply with social  
distancing protocol in the workplace will likely offsetthe decline in  
office space tenants due to the increased adoption of remote  
working. a long-term perspective, there is a consensus that  
companies require the office to engender a shared culture, in-  
person collaboration and efficiency—which would support that  
the office sector will eventually recover to pre-COVID 19 volume.
For promising projects that potential borrowers can convincingly  
demonstrate to lenders will produce a healthy return on  
investment, loan servicing is readily accessible and interest rates  
and spreads are ideally priced from an investment perspective.
Lenders continue to actively lend on lower-risk assets, such as  
industrial and multifamily projects. In these sectors, borrowers can  
actually secure historically low-interest rates. There continues to  
be substantial capital for all other asset classes, bringing increased  
competition between lenders and unprecedent low rates for  
borrowers. This is apparent in the performance of industrial and  
development projects, which has remained robust thanks to  
ample cash flows for underwriting.
Express Capital Financing is a direct nationwide hard money loans  
lender of bridge/hard money mortgage lending as well as small and  
large balance commercial mortgages. At Express Capital Financing,  our 
hard money mortgage advisors engage in a solutions-focused,  
consultative approach. We understand each client’s specific needs  and 
goals and present the best approach to satisfy the real estate  
investor’s requirements. Express Capital Financing possesses a unique  
market knowledge that is critical in today’s complex and volatile  
environment. Express Capital Financing’s integrity, relationships and  
our determination are uniforms in every transaction in which we  
participate.
Thank 
You!!
2625 East 14 St. Suite 209  
Brooklyn, NY, United States  
11235
[email protected]  
www.expresscapitalfinancing.com