Houston Apartment Owner Loses 3,200 Units to Foreclosure

Most of Applesway’s loans originated in the second half of 2021, just before the Federal Reserve began its campaign to raise interest rates. At one property, the interest rate on Applesway’s loan had risen from 3.4% to around 8%, according to loan information obtained from data firm Trepp Inc. At least two of the properties were financed with about 80% debt, which is considered high leverage in commercial real estate.

 

 

高利率的牺牲者

商业贷款没有定期的？

当然有，the catch is

early payoff penalty

Sorry, I meant fixed interest rate, still no early payoff?

Conventional commercial loans (from Fanie and Fredie)

always have hefty early payoff penalty clauses.  

公寓楼不会用fannie的贷款吧。

fannie/Freddie backed agency loans 已经占大型公寓楼房贷市场差不多一半以上的份额了

当然不是我们说的1~4单元的常规贷款， 而是商贷。

if loan was only originated in 2021 and rate is reset now

if the loan was only originated in 2021 and the rate is resetting now, it is most likely a bridge loan, 

most of the time, if the loan was originated and serviced by a local bank, most of them are 10-15-year term but rates will reset every 5 years if the loan originated by Fannie/Freddie, it can be 7/10/12 year term and the rate doesn't change thru the course of the loan.

most major Apt complexes are Fannie/Freddie

they are non-recourse.

记得当时休斯顿的公寓空置率在10%，这是明显的不好信号。出租市场能更好地表达出房产的供需关系。还是有人敢赌。

it is bridge loan for value add quick turnaround

I think all principals are out already

bank becomes the new owner, even worse

(发自我的文学城离线浏览器)

可以不还钱？还有机会东山再起？

看网上列出来的几个都是很差的地段，大概是最差的一档。一旦空置率高了，估计找不来什么租客