There’s no doubt that commercial real estate market took a massive hit during the most recent recession. With so many companies going out of business, many shops and store fronts across the state, including here in Huntington Woods, were left vacant and unused.
But according to some mortgage brokers, out-of-state investors may be that extra boost the Michigan commercial real estate market needs in order to make 2013 the year of most growth.
A Grand Rapids mortgage broker has already secured $21.5 million worth of loans for three commercial properties in recent months and hopes that they are only the beginning. With the American economy slowly rebounding, she says, lenders are starting to get their appetites back when it comes to financing properties in Michigan.
All of the loans the mortgage broker has obtained so far this year have been million dollar investments, all of which came from out-of-state investors. The largest was a $10 million loan from a regional bank that will be used to help Franklin Partners LLC of Chicago acquire the Comerica Building in Grand Rapids.
Two more out-of-state investors have also brought business to Michigan, one being a North Dakota group who purchased a Ramada hotel and a life insurance company who received a $6.5 million refinance for a Home Depot ground leased in Midland.
The mortgage broker hopes that in 2013, the positive momentum will continue in Michigan’s commercial real estate market and boost financing for all property types.
Source: mlive.com, “Out-of-state money returning to Michigan’s real estate market, mortgage broker says,” Jim Harger, Dec. 19, 2012