It is no secret that investors and banks have been shy in recent years when it comes to lending out money; while small community banks have all but stopped completely, even major banks have eased up on the amounts they have been lending over the past several years. And with the amount of construction and development loans that dried up and went sour, who can blame them?
2013 could be a turn-around year for the Atlanta market, however. Banks are starting to lend again, sending ripples of excitement through the market. Wells Fargo lending is up 40% in Atlanta (and even doing 10 year loans), GE Capital is on track to lend $4.5 billion this year, and Goldman Sachs is set to lend $6 billion.
While the institutions that are doing the lending have obviously gained confidence in the market, they want potential borrowers to know that things are going to be different this time around. Lenders are only looking to lend money to borrowers who are committed to the asset and have the local market knowledge to warrant a loan. Lenders are also requiring more capital up front from borrowers.Share