...in this low interest rate environment, many investors are not generating enough cash flow to live comfortably in retirement.
San Diego, CA (PRWEB) November 03, 2014
Versant Commercial Brokerage has completed $257MM in debt and equity transactions through the third quarter of 2014. The transactions covered more than 1.2MM SF of commercial real estate in Texas, Florida, Nevada, and Oklahoma. Notable transactions included the recapitalization of an 111,000 SF flex office building in Dallas, Texas, and a 204,000 SF Class A office building in Las Vegas, Nevada.
“We are seeing strong demand from individual investors for well priced equity and mezzanine debt,” said Matt Mueller, President of Versant. “We underwrite our equity offerings with an 8% current dividend, and our mezzanine offerings at 14-15%, paid current. Continued low interest rates are forcing individual investors to look for creative alternatives to traditional fixed income investments, such as certificates of deposit and government bonds.”
“Pricing on CMBS loans is extremely competitive right now and availability has expanded,” said Quinn Palomino, Principal of Versant. “Low interest rates are pushing up cash on cash returns for equity holders, which is making commercial real estate more attractive to individual investors. The key is to reduce risk by purchasing buildings with strong credit tenants, such as ADP, United Healthcare, Progressive Insurance, US Cellular, or Waste Management; all of these companies are tenants in past or current offerings.”
Versant provides a wide variety of commercial real estate services, including senior debt origination, mezzanine debt syndication, 1031 transactions, and equity syndication. The firm specializes in providing mezzanine and equity investment opportunities directly to individual accredited investors without using high priced intermediaries. Many transactions involve under-capitalized tenant in common owned properties.
“Unfortunately, in this low interest rate environment, many investors are not generating enough cash flow to live comfortably in retirement. A large percentage of our clients have a significant percentage of their capital invested in certificates of deposit and government bonds,” said Palomino. “These investments, while great for their low credit risk, are problematic in a rising interest rate environment. We want to provide investors with the opportunity to achieve higher returns without taking on too much market or credit risk.”
About Versant Commercial Brokerage
Versant is a commercial real estate investment and finance firm. We provide high quality investment opportunities for individual investors by creating access to exclusive deals. Our professionals have advised on over $3,000,000,000 of commercial real estate engagements.
Through a private network of investors, we provide debt and equity capital for commercial real estate projects. Our network of relationships, sophisticated analyses, and experience in deal structuring give us a unique capabilities to place debt and equity for real estate projects nationwide.
Our investors obtain superior returns by directly investing in exclusive opportunities. We reduce costs by eliminating redundant financial intermediaries.
Please visit http://www.versantcre.com to learn more about our investor services.