The nation’s economic recession has had a slow impact on the recovery of the commercial realty market. The good news? Property values, occupancy rates, and rental rates are increasing. commercial real estateIt seems to be gaining significant traction.
The lower interest rates have helped to increase demand from borrowers, who are already feeling some of the positive effects of the improving realty market. This is giving rise to the commercial mortgage-backed securities market (CMBS). 2012 saw CMBS issuance hit a post recession high of $48.18 trillion — a figure that is expected rise in 2013 & beyond.
“I am very optimistic about the CMBS business in 2013. I think volumes will grow substantially,”Anthony Orso is the CEO of Cantor Commercial Real Estate. “You will continue to see high-quality loans, and you will see more capital raised for the B-piece community.”
Orso speaks from professional experience. The New York-based real estate finance company, an affiliate of Cantor Fitzgerald & Co., originated nearly $5 billion in securities throughout 2012. CCRE was able to sell bonds to over 150 investors last year thanks in part to Cantor Fitzgerald. Orso expects these figures to grow, a confidence he shares in top commercial realestate (CRE) financiers like Omega Commercial Finance Corporation.www.omegapublic.com
“Omega uses a principle based on marrying affordable financing with available capital,”Jon S. Cummings IV is the president of Omega Commercial Finance Corp. “One of the advantages of traditional CMBS lenders is the ability to offer competitive rates against banks, agency lenders and insurance companies. Omega is strategically positioned to accommodate this growing market.”
Omega is a publicly traded financial holding corporation (OTCQB OCFN). It just acquired a minority stake at VFG Securities Inc., a broker dealer with $180m in Assets Under Management. This acquisition will allow it to establish its own internal structured finance arm. Omega now has the ability to raise capital internally to fund their CRE loans. Investors looking for future income sources will also find this acquisition attractive.
Find out more about CRE loans, the rebounding market and other information at www.omegapublic.com.
