Nikole Garcia discusses the state of new construction finance in Construction Dive
Despite the economic fallout of the COVID-19 pandemic, an August 24, 2020 article in Construction Dive, which included insight from Trenam’s Nikole Garcia, noted that finances remain available for projects. However, owners remain hesitant to break ground.
“What I am hearing from lenders is that they want to make loans while they can,” Garcia said. “There’s a feeling that lending could tighten at any time, so it’s a may hay while the sun shines mentality. There is a bit of a frenzy to get loans booked and projects started in case conditions worsen.”
While projects in certain sectors remain active, they need to clear a higher bar of quality before moving forward. “A good project is still a good project, even in this environment,” Garcia said. “Certain sectors, such as restaurant and hospitality, are going to be a harder sell and held to higher underwriting criteria, but with the right ownership team, level of experience and collateral, there is money available.”
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