NEW YORK—PMZ Realty Capital, a national boutique real estate investment banking firm focused on creating advantageous capital structures for its clients, announced it arranged $110 million in financing for its clients this year. PMZ remains bullish on the remainder of 2017, even with the rise of interest rates and the possibly of further increases by the Fed later this year.
“Increased supply has started to limit the upside in many markets, and the ‘easy money’ seen during the cycle has begun to dry up,” said Michael Sonnabend, managing member of PMZ Realty Capital. “Borrowers need to focus on the basics when looking at financing new deals or refinancing existing ones. The number of lenders interested in competitive financing most deals has declined, and the demand for funds is beginning to start to exceed supply which has caused terms to be stricter, manifesting in tighter constraints on proceeds and more thorough underwriting.”
With over 75 years of combined experience, the company has a strong record with the lending community to help clients seek out lending partners that understand the market conditions and benefits of the hospitality industry.
“Lenders are seeking transactions with strong sponsorship that are properly leveraged, show multiple demand generators, and lack of new competition that will impact the quality of cash flows going forward,” said Peter Berk, president of PMZ Realty Capital LLC. “Sponsors seeking acquisition loans need a well thought out business plan, and a track record of similar ventures from the proposed borrower.”