'Back-Pocket' Catalyst To Get Deals Done Surges In Tight Capital Market

New York Partner Sandy Jacobson was quoted in Bisnow about the resurgence of the use of seller financing for commercial real estate transactions. The article says that “in 2023, the most recent year comprehensive full-year data is available, commercial loan dollar volume for seller financing increased nearly 60% over 2022 and 30% over 2021 levels, according to research from Noteinvestor.com. The average commercial loan note size for these types of transactions was about $613K, up from about $433K in 2022 and $495K in 2021.”

Sandy commented, “It's sort of like a short-term bridge loan, meaning a year or two term to allow for buyers to see what's going to happen in the marketplace in the short term, with the hope, obviously, that interest rates are going to go down and they can refinance and get into a typical loan structure.”

Read the full article here.