Finance Lending
Omega Opportunity Fund I to Launch, Focus on Quality Development Projects
Aug 20, 2008

Omega Commercial Finance Corp. is creating and will soon launch Omega Opportunity Fund I L.L.P., it has announced. The new fund will focus on distressed commercial real estate development projects that have been delayed, or in some cases, temporarily halted in the United States and Canada. The fund has already identified multiple high-end office, hotel, retail, and multi-family opportunities. Among the specific criteria for the fund, a development must be prepared for immediate vertical construction, with a proven development team in place. The exit strategy of the fund, since their “cost of capital” to the borrowers will exceed standard bank rates, is to allow Omega’s lending arm the ability to structure the permanent financing. Omega Commercial Finance has also agreed to work exclusivity with AJM Development Inc., a development firm based in Arizona, to identify quality projects that fit its requirements. Andrew McAdams, president of AJM, has worked with Omega on this project over the past year. Collectively, they have locked-up $2.1 billion in projects ranging from hotel developments located in major metropolitan areas to Class A office developments and waterfront developments with retail as the majority core assets. Also, Omega, with the assistance of AJM, has arranged up to $360 million dollars of capital through letters of intent, in order to launch the fund, and both anticipate capitalizing the fund with up to $1 billion dollars by year end.

 
Recent Lending Headlines
Education Realty Nabs $222M
Jan. 06, 2009
Student housing REIT Education Realty Trust Inc. has closed a $222 million secured credit facility, courtesy of Fannie Mae DUS lender Red Mortgage Capital Inc., and is wasting precious little time making use of the proceeds.
Emeritus Closes Refi Deal, Extends $73M Debt
Jan. 05, 2009
Assisted living and Alzheimer's care facilities provider Emeritus Corp. capped the end of the year by ensuring there would be no material maturities hanging over its head in 2009. The company wrapped up the $36.3 million refinancing of seven properties through Freddie Mac, a move that allowed it to pay down and extend an existing debt with Capmark.
3Q GDP Down, 4Q Expected to Be Worse
Dec. 24, 2008
The quarterly report by the U.S. Department of Commerce on the national GDP is something of a lagging indicator. The fact that the U.S. economy contracted 0.5 percent in the third quarter--July to September--might be worrisome, but it only raises the further question of how much contraction will happen in the fourth quarter.
paulson A Bailout for Commercial Real Estate?
Dec. 22, 2008
"Right now, we believe there is insufficient systemic capacity to refinance expiring, performing commercial real-estate loans," reads a letter from a dozen commercial real estate trade groups to Treasury Sec. Henry Paulson, according to the Wall Street Journal this morning. In other words, the commercial side of the business, long perceived as relatively healthy compared with the residential side, is warning of dire straits ahead unless refinancing money is available in the near future.
CMBS Delinquencies Speeding Up: Fitch
Dec. 22, 2008
Back in January 2008, long before the capital markets took their astonishing twists, Fitch Ratings made a sobering prediction: By the end of the year, its CMBS loan delinquency index would be double or triple the 0.28 percent recorded at the end of 2007. Fitch’s crystal ball turned out to be right on the money. On Friday the ratings agency reported that CMBS delinquency reached 0.64 percent for November. At this pace, Fitch projects that CMBS delinquencies could hit 2 percent by the end of 2009.
 
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