The Bronx is becoming the next target for commercial real estate investors in NYC. Everything from simple renovations to construction and even speculation property acquisitions without tenants is becoming prominent in Bronx neighborhoods. But what is the right financial strategy?
Analyzing Bronx Properties
Investing in Bronx properties can be very lucrative, but there is some research to be done beforehand. Commercial real estate investors should perform an analysis of how properties have performed over the past few years. If the properties are not in use, look for similar ones that match not only the current location but your plans after construction or renovation. Try to find numbers for tenant capacity, rent, and turnover. Also, look for economic trends and what other projects are going up near the property you want to acquire. It should go without saying that investors should also try to find out when the last time any work was done on the property, what yearly expenses are on the property, and if there are any outstanding liabilities.
Financing Bronx Properties
Finding adequate financing has been a risky and challenging process for many local commercial real estate investors. Traditional lending channels are still taking a long time to process loan requests, and some treat even multi-unit rentals as if they were private residences. There are also interest rate hikes looming over the horizon for traditional loans. Some commercial real estate investors are moving ahead of their own accord, funding projects out of pocket without any guarantee of buyers or tenants once construction and renovations are complete. High-risk investments with a potentially low-yield return are generally discouraged for even the luckiest speculators.
A Sound Approach
One of the ways to minimize the risk for all parties involved is to use a lender who specializes in commercial real estate solutions. The right lender will work with you to analyze Bronx properties and provide a sound financing strategy based on the overall profitability of your project, not just the current state of the property. Specialist lenders go above and beyond standard loans, by offering CMBS conduit loans, mezzanine and equity financing, and even ongoing funding for larger construction projects.
Express Capital Financing is a leader in commercial real estate funding solutions for NYC properties. We work with property investors and developers to provide financing tailored to their needs, to help them generate the revenue they want. Contact Express Capital financing today to learn more about our commercial real estate solutions for Bronx properties.