Florida developers who seek backers for their commercial real estate projects may be pleased to learn that investment firms have no problem getting into deals that banks might have to pass on. While government agencies like the Office of the Comptroller of Currency are taking great pains to oversee bank investment activities, other investors who aren't subject to such stringent regulations feel free to invest in a broader range of projects.
Florida commercial real estate developers may have heard that Deutsche Bank was fined $14 billion by the U.S. Department of Justice for the way in which it issued residential mortgage-backed securities prior to the 2008 housing crisis. This move could impact the commercial real estate market in several ways.
Commercial real estate analysts are viewing a recent Florida deal as evidence of investors' shift away from large metropolises. Acre Valley Real Estate Capital and ABS Partners Real Estate recently paid $150 million to become co-owners of the Datran Center, an office complex in Miami. Last year, the two investment firms also purchased an apartment building in Cary, North Carolina, and three office buildings in Charlotte, North Carolina.
Florida commercial real estate developers may have heard of hard money loans as an available option for securing project financing. They may not be aware of what these loans are or how they differ from more traditional types of financing for commercial real estate.
With equity real estate investment trusts moving from the financials sector to the real estate sector, Florida investors may see improved performance in their REITs. It is expected that many equity REITs will become even more profitable when separated from the volatility of the financials sector. However, not every investor will benefit. Some REITs are held in exchange-traded funds, and this could lead to a drop in dividends that may range from minor to more significant depending on how many assets are involved.