News & Articles

Brian Holstein | January 2018

Borrowers and lenders both enjoyed a fruitful 2017 and US Hotel Advisors predicts that 2018 will be more of the same.

Looking Back at 2017

Most experts predicted that 2017 would be a rough year for commercial real estate lenders and borrowers alike.  The “Wall of Maturities” was supposed to come crashing down. The newly-instituted risk-retention regulations were expected to curtail lending capacity and damage liquidity.  Both the 10-year Treasury rate and loan spreads were projected to rise.  All of this sounds dreadful, unless of course it never happened.  US Hotel Advisors took the contrarian view and got it right. 

The “Wall of Maturities” turned out to be a non-event. ...

Continue Reading

Brian Holstein | July 2017

Coke or Pepsi?  Stripes or Solids?  Apple or Android?  Ohhh, the agonizing decisions we humans are forced to make on a daily basis!  What if I told you that choosing between a fixed-rate loan and a floating-rate loan could make or break an otherwise successful real estate investment?  Given how often this topic arises and how long the deliberation can last, I will guess that most real estate professionals reading this article would agree with the above statement.  Below is a primer on the difference between fixed-rate loans and floating-rate loans and the pros and cons of each option.

Interest Rates

Fixed-rate loans tend to carry a lower interest rate than their floating-rate counterparts.  The general reasoning is that floating-rate loans tend to be secured by riskier assets as they are the main tool for financing “value-...

Continue Reading

Noel A. Palma | June 2017

Seemingly, there is a report of a new hotel opening in the Denver MSA every few weeks.  These launches are symbolic of the growth and health of the local economy.  However, it is important to assess whether all of the new hotels can be sustained and whether the overall Metro Denver lodging industry can continue to thrive.  US Hotel Advisors (“USHA”), headquartered in Metro Denver, is pleased to present its “Denver MSA Hotel Impact Study,” an independent study to gauge the impact of the new hotel supply on the Denver MSA lodging market.  A summary of the findings are presented below.  For a copy of the full Study, please contact the Author.  

Method of Study

As part of the Study, USHA evaluated various demographic and economic indicators to assess their coefficient of correlation with local hotel demand trends.  Based on this evaluation, it was...

Continue Reading

Brian Holstein | January 2017

The commercial real estate lending markets started 2016 slow and choppy and spent the rest of the year making up lost ground.  Volume was down, but available for good deals; rates and spreads were accommodative, even with the year-end Treasury rate spike; defaults rose slightly, but not alarmingly and banks and life insurance companies picked up market share at the expense of CMBS lenders.  This year, the debt markets will face their own set of unique and unprecedented challenges, but the picture remains rosy.  

Wall of Maturities

Much has been made about the so-called “Wall of Maturities” in 2017, which is largely the result of the $230 billion of CMBS loans originated in 2007, most of which were 10 year loans.  There are approximately $208 billion of “Non-Bank” commercial real estate loans set to mature in 2017; approximately half of...

Continue Reading

Brian Holstein | April 2016

Navigating the CMBS market can be a confusing and challenging process.  Here are three CMBS secrets that will strengthen your negotiating position and ensure that you leave nothing on the table.

#1 – EVERYTHING is Negotiable!

Remember, this is not a car loan, or even a home loan for that matter.  If your attorney or broker does not have at least 30-50 individual comments to a loan agreement (not including the swapping of “sole and absolute” for “reasonable”), you are leaving money and excess risk on the table.  Just like the legal system, the key to a well negotiated loan agreement is “precedent.”  If it’s been done before, it can likely be done again.  And if a requested change will not result in a lender’s requirement for additional securitization reps and warranties, the change can likely be granted without a fight.  If it...

Continue Reading

Brian Holstein | January 2015

Do you need to raise capital for potential acquisitions, new developments or property renovations?  Are you nervous about the $350 billion of CMBS loan maturities looming over the next three years or eager to lock in low interest rates for the next ten years?  Do you have trapped equity behind a low leverage loan?

Whatever makes you excited…or anxious about the next few years, it’s time to ask yourself, “Does it makes sense to pay the penalty to refinance early?”  Some quick math will help you answer that question and the result may surprise you!

Not all Prepayment Penalties are Created Equal

Prepayment penalties come in...

Continue Reading

Brian Holstein | September 2013

Whether you are in the market for a simple refinance or acquisition financing, a discounted-payoff (DPO) financing or a PIP-induced recapitalization, the same rules apply.

The hotel loan market has been on a good run for the last twenty-four months with competition among lenders heating to a point not seen since prior to the financial crisis. Lenders are beginning to focus increasingly on areas outside of pricing and leverage in order to preserve loan profitability and keep mortgage leverage below the aesthetically pleasing 70% loan-to-value level.


Continue Reading