Midwest Real Estate News June/July 2014 : Page 1

MINNESOTA | MISSOURI | NEBRASKA | OHIO | TENNESSEE | WISCONSIN JUNE/JULY 2014 VOLUME 29 ISSUE 09 Asset/Property Management Firms, Auction Companies, Business & Industrial Parks, Economic Development Companies WWW .REJOURNALS.COM Directories begin on page 34: THE DAKOTAS | ILLINOIS | INDIANA | IOWA | KANSAS | KENTUCKY | MICHIGAN The CORTEX district in St. Louis continues to attract biomedical and tech companies to the market. FEATURE: CRE FINANCING Stability, diverse economy key to success in St. Louis Need financing for your new project? Need dollars to acquire that office complex? Here’s what you’ll need By Dan Rafter, Editor I By Dan Rafter, Editor t’s easier today to get financing for the new ho-tels, multi-family buildings and strip centers that you want to build. And if you want to purchase that office tower in downtown, you’ll find plenty of banks and lenders willing to provide you with the acquisition funds you’ll need. But don’t expect lenders and banks to just hand you this money. You’ll still have to work for those dollars. That’s the message from two lending pros working the Midwest, Pat Dempsey, senior vice president with Walker & Dunlop, and DJ Effler, senior vice president in the Columbus office of Bellwether Enterprise. Both lending pros said that developers can nab financing dollars today. But they’ll first have to prove that demand is high for whatever hotel, apartment complex or mini-mall that they’re building. And they’ll also have to show that they have the positive cash flow necessary to repay their loan on time. Those developers and investors that can do this? They’ll find plenty of money available in today’s lend-ing market. “The capital markets are incredibly healthy right now,” Effler said. “There is a lot of capital out there.” Part of the reason? In addition to more traditional lending sources, the CMBS market is strong today. Effler says that this is good news for anyone seeking development or acquisition funding. CRE FINANCING FEATURE (continued on page 14) M ike Hanrahan says that St. Louis is now a great story for investors. And Hanrahan should know. He’s the senior managing director and principal for the St. Louis office of Cassidy Turley. He’s seen this Midwest city struggle during the Great Recession. And he’s seen it steadily recover since that recession ended. Today? St. Louis still faces its challenges. But Hanrahan says that it’s also seeing plenty of successes. “Several factors are behind the city’s commercial real estate recovery,” Hanrahan said. “The most important are the strong fundamentals of our market. Demand by ten-ants for space is strong. And occupancies and rental rates are rising. That is why investors are interested today in St. Louis.” ST. LOUIS FEATURE (continued on page 8)

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