Learn the best bets for finding commercial real estate financing in the current economic climate from top banking executives. Find out what historical trends can aid lending decisions and how trends in job growth, rail traffic, housing, and commercial real estate fundamentals impact banks and other lenders. Also learn how finance issues such as CMBS, cap rates, lending trends, and mortgage delinquencies affect the commercial real estate market.

1. Evaluating Today’s
Financing Options

19. Lending Options in Today’s Market
Chris Christiansen
Senior Vice President – Bank of America Merrill Lynch
Global Commercial Bank
Salt Lake City, UT 84111
801.526.5656
chris.christiansen@baml.com

20. Real Estate Financing Options:
•Life Companies
•Bank Financing
•Hard Money
•Friends & Family
Where does your property and / or borrower fit?

21. Bank Financing Consists of 2Buckets:
Bucket #1
Owner Occupied Properties
Bucket #2
Non-Owner Occupied (Investor Properties)
Typically funded by banks looking for a
broader relationship
Transactional relationship
• Multi-purpose
•Special Use
•Single Tenant
•Multi-Tenant
•Mixed Use vs. Single Use
What’s Important to a lender:
1.
Property type
2.
Strength of the borrower
3.
Deal size
A CRE Broker can add tremendous value by positioning the appropriate lender

22. Sweet Spot: Owner Occupied Properties
Loan Type
Conventional Real Estate Loan
SBA 504 Real Estate Loan
(1)
$250,000 – $15,000,000
$350,000-$13,750,000
Refinance, purchase and/or improvement of OOCRE
•
•
•
Construction
Yes
Yes
Management
Experience
Prior industry management and ownership experience
preferred
Prior industry management and ownership experience
preferred
20%
10-20% depending on property
OOCRE 15, 20 or 25 years
OOCRE up to 25 years
Term
5, 7, 10, 15 or 20 years
Up to 20 years
Fees
Negotiable
Many eligible to be financed
Rates
Contact your Bank of America Merrill Lynch client
manager or business development officer
Contact your Bank of America Merrill Lynch client
manager or business development officer
May be applicable under certain fixed-rate options
May be applicable under certain fixed-rate options
Loan Size
Use of
Proceeds
Down
Payment
Amortization
Prepayment
Fees
total project costs
Build, purchase or improve (OOCRE)
Refinance of existing SBA 504 first deed of trust
Equipment with usable life in excess of 10 years (e.g.,
printing press)

23. Know your lender:
•What is their sweet spot?
•Deal size constraints / parameters?
• Property type constraints
•Concentrations?
•Are they partial to certain industries?
Bank of America Merrill Lynch
•Owner Occupied / Investor Properties on a case by case basis
•Single resource for SBA or Conventional financing for $250K to
$15MM
• Prefer multi-use but will finance some special-use properties
•Industries: Manufacturing, Healthcare, Distribution, Professional
Services
Whether it’s pursuing co-marketing opportunities or developing quick, innovative financing solutions for your
clients, you can depend on Bank of America Merrill Lynch to achieve your goals.

24. Lending Options in Today’s Market
Chris Christiansen
Senior Vice President – Bank of America Merrill Lynch
Global Commercial Bank
Salt Lake City, UT 84111
801.526.5656
chris.christiansen@baml.com

25. Thank you

26. A Community Banker’s
View on Lending
Maryann Mize, CCIM
Charlotte State Bank & Trust
mmize@csbtfl.com

27. Community
Banks less
than $10B
represent
90%

28. CRE
Historic
Basis:
Communty
Banks
have had a
role
Commercial Real Estate Loans as a Percent of Total Assets
35.0%
30.0%
Assets > $10 Billion
Assets $1 Billion - $10 Billion
25.0%
Assets $100 Million - $1 Billion
Assets < $100 Million
20.0%
15.0%
10.0%
5.0%
0.0%
Source: fdic.gov

29. CRE
Troubled
Assets
Overall
is
declining
Noncurrent Assets Plus Other Real Estate Owned to Total Assets
4.50%
4.00%
3.50%
Assets > $10 Billion
Assets $1 Billion - $10 Billion
3.00%
Assets $100 Million - $1 Billion
Assets < $100 Million
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Source: fdic.gov

30. Overall:
low Loan
To Deposit
Ratio’s
means
money to
lend, includ
ing CRE

31. CRE
Lending
Overall is
up since
2010

32. A Community Banker’s
View on Lending
Maryann Mize, CCIM
Charlotte State Bank & Trust
mmize@csbtfl.com

33. Questions?

34. Evaluating Today’s
Financing Options
Thank you!