Seaport Advisory - commercial real estate

The Low-Interest Bridge Loan Dilemma: A Financial Tightrope

Commercial real estate projects can be a lucrative investment opportunity for those who are willing to take on the associated risks. While financing options for these projects vary, bridge loans are often used to cover the gap between the initial investment and the eventual long-term financing. However, recent trends in the market have shown a rise in bridge loans with radically lower interest rates than the current rate. This may seem like an excellent opportunity to save on interest costs, but it poses significant risks to investors and lenders alike.

First, it's essential to understand what a bridge loan is. A bridge loan is a short-term loan used to finance the gap between the purchase of a property and long-term financing. Typically, these…

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Five Things to do Before Investing in Commercial Real Estate

Investing in anything requires determination and careful planning. Real estate is no exception. While investing in real estate is an amazing financial opportunity (consistent returns, passive income, and growth potential), it's important to understand that increased reward requires increased responsibility. As always, we strongly encourage you to reach out to a commercial-certified expert (reach out to us for more info), but here are some tips we think you should do before deciding to invest or purchase commercial real estate. 

Determine Goals and Needs

Before jumping into any decision, it's important to know why you're doing it. Are you looking for an investment property? Do you need business space? Are you interested in developing? Determining…

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1031 Exchange. What are they and how can they be of benefit

A 1031 exchange, also known as a like-kind exchange or a Starker exchange, is a tax strategy that allows investors to defer paying capital gains taxes on the sale of a property. This is done by reinvesting the proceeds from the sale into a similar property.

To qualify for a 1031 exchange, the property being sold and the property being purchased must be considered "like-kind," according to the IRS. This generally means that the properties must be used for the same purpose, such as for investment or business purposes. The properties do not need to be identical, but they must be of a similar type or nature.

There are several benefits to using a 1031 exchange. The most significant benefit is the ability to defer paying…

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New London County Multi Family Market Rent/Bedroom

The vacancy rate in the New London Submarket has remained stable over the past year, but at 2.6%, is somewhat below the long-term average. While developers have been active in recent years, nothing has been delivered over the past 12 months. But construction has started back up, and about 340 units are underway, which will substantially expand the existing inventory. Rents have increased by an impressive 7.9% over the past year, which significantly exceeds the average annual growth of 4.0% over the past decade. Investors have been active in the New London Submarket over the past three years. The market price, which is an estimated price of all properties in the submarket, has risen dramatically over that time period and now stands at $152,994/unit.

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