North Carolina Commercial Property Closes on Cash-Out Refinance

In March of 2024, our borrower closed on the cash-out refinance of their commercial property located in Supply, North Carolina. The expansive property consists of six buildings with a combined 89,711 square feet sitting across a 33.4 acre lot. The loan amount for this deal was $2,000,000 and the LTV was 59%.

The loan proceeds from this closed deal are to be used in numerous ways by the client including paying off the current note, providing a 4-month interest reserve, providing funds, and for demolition and working capital to finish architecture and engineering across each of the six structures. 

Thank you to our client for allowing us to have a hand in this deal! We are excited to see the finished products from the client's planned improvements!

Let's see if your deal is a fit for our team here at Commercial Capital BIDCO! We work nationally across multiple industry segments. Let's work together! Submit a deal inquiry today on our website: https://commercialcapitalbidco.com/apply/ 

 


A Letter From Terry Luker: What Do You Do When the Industry Icon Goes Away?

What Do You Do When the Industry Icon Goes Away?

How does the void get filled?

Do you leave the vacuum running and wait to see what or who fills it?

 

Three of us - myself, Terry Luker, along with Jeff Luker and Jon Cosentino - chose to try and fill the void while also changing our industry’s direction. Our industry is the commercial loan brokering industry, a trillion-dollar transactional industry.

 

Over the past eleven years, I founded two businesses - Alternative Capital Solutions, a commercial loan brokering company and later a direct lender, Commercial Capital BIDCO. As I look back at my time in the industry, I realize there are two companies that were instrumental in the growth of my businesses - Commercial Capital Training Group (CCTG) and The National Alliance of Commercial Loan Brokers (NACLB). CCTG was the company that provided commercial loan broker training. I attended that training in December of 2013. The NACLB was the association and conference that we attended for many years. I was given the Commercial Loan Broker Rookie of the Year award in 2014 and in 2016 I received the Commercial Loan Broker of the Year award. These awards were presented by the NACLB at their annual conference.

 

Both CCTG and NACLB were owned by Kris Roglieri. Kris is now involved in multiple lawsuits resulting from business activities he had through another company he owns, Prime Venture Capital Lending. I am personally familiar with the lending tactics he used with this new company as he had promised me that he could get my lending company, Commercial Capital BIDCO, a $100,000,000 line of credit. Our firm sent in the $35,000 due diligence fee and began the process of acquiring that line of credit. Thankfully we have an awesome attorney who quickly saw through the scheme, and we did not move forward with a loan. We were going to be required to place $20,000,000 on deposit in an interest reserve account. Our attorney could not get comfortable with the agreements and advised me that Kris would have complete control over those funds to do whatever he wanted with. Our attorney told me that it appeared to be a Ponzi Scheme and in turn saved my company and my family from certain financial disaster as we could not afford to lose $20,000,000.

 

With CCTG and the NACLB closing, there was a massive void in our industry. I had previously tried (and as we have now discovered, many of his staff had tried) to convince Kris to take the conference to a more education-based focus as an association. As a direct lender, we work with commercial loan brokers every day and we see first-hand the struggles that many of them have. Many do not have the knowledge needed to take a deal from the beginning relationship with the borrower to the funding with a lender. They simply do not have the necessary training and experience to get it done.

 

Our team has decided to bring a superior level of training and education to both our new association and conference, the Commercial Loan Broker Association, as well as our new training company, The Commercial Loan Broker Academy. Our association and academy will be different. We have planned for our first conference to take place in Orlando this October 1-3, 2024.  We want the conference to bring lenders, vendors and brokers together to not only meet and network, but to execute plans that will give the brokers’ clients access to the funds they need to grow and expand their businesses. We want lenders to be able to know, with confidence, that the brokers they are working with have the knowledge base needed to get the deal to them with the correct structure and documentation needed for them to make an informed decision on funding those transactions. That is a win for everyone when we accomplish this. The CLBA conference will be more educational focused to help fulfill this need in our industry.

 

With our new training academy, we want to increase the chances of success for every new commercial loan broker. When I started in this business 11 years ago, there were three things I had to do every day: 1) I had to find clients that needed my services, 2) find lenders that would lend to my clients, and 3) package my clients’ loan requests in the format that lenders wanted. I was burning the candle at both ends!

 

We want to change that. One of the best things that we ever did at our company is that we built our own credit team. At Alternative Capital Solutions, we underwrite every deal that we represent. ACS does all the underwriting for our lending company. We also underwrite participation deals that we do between banks. We have multiple bank partners that utilize us to find participating bank partners for deals they want to fund that might be too big for their bank or might just want to spread some of the risk to participant partners. Our credit underwriting sets us apart from every other commercial loan brokering company.

 

We are going to leverage that credit underwriting and provide access to our team for those students who attend our training academy. In addition, we are going to allow our student graduates access to our lender book in order to help fund their deals. As you can see, if we provide the deal packaging and underwriting to our graduates and we provide our lending relationships to our graduates, all they must do is go find their clients. We believe this will be a great recipe for success for our graduate students.

 

I am excited about where we are as an industry, but I am more excited about where we can take our industry. This is not a one-person success or fail opportunity. This is an opportunity for all of us who love what we do, to come together and grow our industry in education, morals, ethics and accountability. Come be part of a new direction. I hope to see you all in Orlando this October!

 

By: Terry Luker, Founder and Owner:

Alternative Capital Solutions, Commercial Capital BIDCO, The Commercial Loan Broker Academy, the Commercial Loan Broker Association, and The Commercial Broker Playbook

 


Terry Luker and Jeff Luker Launch the Commercial Loan Broker Association

Exciting times are ahead for the teams at Alternative Capital Solutions and Commercial Capital BIDCO! In order to fill a gap within the Commercial Loan Broker industry, Terry Luker and Jeff Luker – along with business partner Jon Cosentino of Fairwinds Commercial Capital – have launched the Commercial Loan Broker Association (CLBA). Terry, Jeff and Jon created the CLBA as a way for Commercial Loan Brokers to establish meaningful relationships with lenders and other brokers across the United States, increase their deal flow, as well as tap into thoughtful professional development and education opportunities. Using their combined experience of over a century within the CRE and Finance industries, CLBA’s main goal will be to drive broker success and strengthen broker + lender relationships.

Their inaugural CLBA Conference & Expo will be hosted in Orlando, Florida at the Hilton Lake Buena Vista at Disney Springs this October 1 – 3, 2024. The Conference & Expo will take brokers and lenders into deep educational dives covering industry trends, key strategies for growth, and new technologies that will benefit their businesses. Networking and exposition hours will allow for all attendees to connect, build relationships, and talk deals with contacts across the country.

Mark Sanborn will deliver the Keynote Address for CLBA 2024. Sanborn, President of Sanborn & Associates, has spent over 30 years cultivating extraordinary leaders. Sanborn is an international bestselling author and an award-winning leadership keynote speaker who has written eight books, including the New York Times and International Bestseller, The Fred Factor: How Passion in Your Work and Life Can Turn the Ordinary into the Extraordinary, which has sold over 2 million copies worldwide. His latest book is The Intention Imperative: Three Essential Changes That Will Make You a Successful Leader Today. The CLBA is thrilled to have him kick-off their first annual Conference & Expo.

Early Bird Registration for Broker and Lender attendees is now open! Sponsorship opportunities for the Conference & Expo are also available. Information for Registration and Sponsorships can be found on the website at https://clbassociation.com/conference-2024/.


Top 5 U.S. Cities for First-Time Commercial Real Estate Investors

Investing in commercial real estate can be a lucrative venture, offering opportunities for significant returns and portfolio diversification. For first-time investors entering this market, selecting the right location is crucial for success. Some key factors to think about when choosing which market to enter into are population growth, job growth, and high rental demand. Here are the top five U.S. cities that offer promising prospects for first-time commercial real estate investors:

1.) Nashville, Tennessee

Commonly known as, “Music City”, Nashville has emerged as a hotspot for commercial real estate. The city’s strong job market is fueled by tourism, finance, and healthcare, and has forced the need for more office space as well as retail space. Nashville’s business-friendly environment yields a promising opportunity for first-time commercial real estate investors. This is a prime area for not only alternative lending opportunities, but SBA products geared towards those small and/or new businesses could be an excellent route as well. 

 

2.) Atlanta, Georgia

Known as the economic hub of the Southeast, Atlanta boasts a thriving business environment and a rapidly growing population. The city's diverse economy, which includes sectors like technology, finance, and logistics, provides ample opportunities for commercial real estate investments. Additionally, Atlanta's favorable tax environment and relatively low cost of living make it an attractive destination for businesses, driving demand for commercial properties.

 

3.) Austin, Texas

In recent years Austin has experienced rapid population growth, and is home to a burgeoning tech scene and a dynamic entrepreneurial culture. The city's strong job market, fueled by companies like Dell, IBM, and numerous startups, has led to increased demand for office, retail, and mixed-use developments. With a vibrant arts and entertainment scene and a high quality of life, Austin offers attractive investment opportunities for first-time commercial real estate investors. From large commercial loan opportunities to small-business ventures, the commercial lending space here is especially unique.

 

4.) Denver, Colorado

Situated at the foothills of the Rocky Mountains, Denver combines natural beauty with a booming economy, making it an appealing destination for commercial real estate investment. Its strategic location as a transportation and logistics hub, coupled with a diverse economy spanning industries such as aerospace, healthcare, renewable energy, and cannabis, contributes to its allure. Denver's young and educated population, alongside a burgeoning tech sector, further augur well for the future growth of the commercial real estate market. Notably, Denver's cannabis industry stands as a trailblazer in the landscape of legalized marijuana since the state's landmark legalization of recreational cannabis in 2012. Emerging as a leading destination for cannabis enthusiasts and entrepreneurs, the industry continues to thrive, significantly contributing to the city’s economy.

**It is important remember that the cannabis laws vary by state

 

5.) Seattle, Washington

Home to tech giants like Amazon and Microsoft, Seattle has become synonymous with innovation and economic growth. The city's thriving technology sector, combined with a highly skilled workforce and a culture of entrepreneurship, has led to sustained demand for commercial real estate properties. From office buildings in the bustling downtown area to mixed-use developments in vibrant neighborhoods, Seattle offers diverse investment options for first-time commercial real estate investors seeking exposure to a dynamic and rapidly evolving market.

 

These five U.S. cities present attractive opportunities for first-time commercial real estate investors looking to enter the market. From Atlanta's diverse economy to Seattle's tech-driven growth, each city offers its own unique advantages and potential for success. However, as with any investment, thorough research and due diligence are essential to making informed decisions and maximizing returns in the competitive commercial real estate landscape.


Smooth Sailing in Florida With a Cash-Out Refinance

A long-time client to Commercial Capital BIDCO closed on a cash-out refinance of two commercial properties in Florida in August of 2023. One is located in Destin, Florida while the second is located at Steamboat Landing in Freeport, Florida. Loan proceeds from this deal will be used to pay taxes due on the sale of assets previously owned by the client. The requested loan amount for this deal was $765,000 with a LTV of 65%. This deal was closed and funded in just 30 days. We thank this client for their repeat business and look forward to many more "smooth sailing" deals in the future!

 


Cash Out Refinance in New Britain, Connecticut

The northeast is still a hot spot for commercial investments and real estate purchases for entrepreneurs as well as developers. As such with this deal, the borrower here was able to close on a cash-out refinance of a commercial property located in New Britain, Connecticut in September of 2023. The property is currently leased by a technical institute, however the loan proceeds from this cash-out refinance will be used to pay off the current note, provide funds to pay past due income taxes, provide funds for real estate acquisitions, and to provide funds for the property to build out a new parking area. The requested loan amount for this deal was $720,000 with a LTV of 65%. The property is 15,542 square feet and sits on 2 acres.


Upscale Wine Lounge Closes Cash Out Refinance in Pennsylvania

In September of 2023, our client closed on a cash-out refinance of an upscale wine lounge located in the beautiful borough of Rankin, Pennsylvania - just 10 miles south of Pittsburgh. The wine lounge provides a unique experience for special occasions, celebrations, date nights, friend gatherings, and more. The lounge also features multiple rooms and spaces to relax, gather, and unwind. Live music is featured throughout the week and a full dinner menu is available nightly. Our client has built an excellent path to success by incorporating unique concepts and an upscale feel for their customers.

Loan proceeds will be used to pay off a portion of their current debt as well as provide funds for upgrades and provide working capital. The requested loan amount for this deal was $2,650,000.00. The LTV was 59% and the size of the lounge is 14,000 square feet.  

 

 


Three Female-Owned Michigan Dispensaries Receive Funding

In June of 2023, our client closed on a loan to fund the acquisition of three cannabis dispensaries, as well as to provide the working capital needed to not only stock each of the dispensaries with necessary inventory but to also improve overall curb appeal of each dispensary. The requested loan amount for this deal was $7,350,000 across the three dispensaries.

The properties are located within three cities in Michigan including Spaulding, Manistee, and Benzonia. These properties are female owned and this deal was able to save 36 jobs! We are so proud to have been able to provide the funding needed to bring their inventory up-to-date, increase their curb appeal for their locations as well as save valuable jobs in these communities. 

Want to learn more about we can get you the funding you need to reach your commercial investment goals? Inquire today on our website by clicking here. 


Taking a Deal to the Finish Line: A Marketer’s Perspective

Commercial Capital BIDCO's Marketing Director, Leah Runge Waldrop, was recently featured in Deal Maker Magazine's latest issue. In this article, Leah was able to share her perspective on Marketing's role when it comes to getting a across the finish line. Leah maps out the key areas to focus as a commercial lending broker - whether you're just starting out or you're a seasoned vet to the industry. Marketing should not be an overlooked role or department within your company, but instead one that should be strategically supported in order to grow your brand and your business - thus aiding you in the process of closing deals.

Here's a quick snippet from the article:

"It will be difficult, to say the least, to get a deal off the starting line if the runner doesn’t know how you can help them get to the finish line – and at best, it will be an uphill race. At the end of the day, you must continue to tell your story and experience as a commercial loan broker to your current clients throughout the loan process. By utilizing the tactics from your marketing strategy to narrate the story and paint the picture, your clients will be reminded throughout the deal that you have the expertise and creativity to help them reach their goals."

Read the article in full on Deal Maker Magazine's website linked below!

https://www.dealmaker-magazine.com/magazine/taking-a-deal-to-the-finish-line-a-marketers-perspective


Cash Out Refinance Closed for Golf Course in Mississippi

We love assisting our clients with a wide variety of commercial investment loans and this deal was no exception! On March 27, 2023, our client closed on the cash-out refinance of a golf course and club located in Gautier, Mississippi. The proceeds for this particular loan product will be used to pay off current debt on the property. The loan will also provide working capital for our client - allowing them to renovate existing amenities to the course and club as well as add new amenities that their recreation patrons can enjoy while on and off the greens. 

The total loan amount was $1,485,000.00 and had a LTV of 28%. Our LTV max is 65% so this deal fell well below that maximum for our requirements.

The property sits on approximately 194 acres.