To read the complete whitepaper, “Transitional Lending – The Sweet Spot in CRE Investing,” click here.
“Our data shows that the CRE market has traditionally overvalued in-place cash flows and undervalued the long-term income generating potential of transitional properties,” said
In the paper, which is backed by comprehensive data and analysis from the largest CRE sectors,
- The CRE market heavily discounts transitional properties.
Amherst Capitalbelieves that the market tends to undervalue the long-term income generating potential of transitional properties and that lenders typically overestimate the risk for transitional property loans.
- Transitional properties strongly outperformed in occupancy gains from Q4 2011 to Q4 2016, which justify price improvements.
Amherst Capital’sdata demonstrates that transitional properties with low occupancy have historically shown clear signs of increasing occupancy over time; these improving occupancies may result in potential value gains for transitional properties.
- Transitional CRE lending potentially presents an attractive risk-reward opportunity. Demand for low-leverage transitional loans will remain strong, according to
Amherst Capital’sanalysis, and leverage through warehouse financing or the securitization market can support the earning potential of these investments.
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/amherst-capital-white-paper-explores-opportunity-in-transitional-commercial-real-estate-lending-300437123.html