Fed Meeting Update

The Federal Reserve on Wednesday enacted a quarter percentage point interest rate increase, expressing caution about the recent banking crisis and indicating that hikes are nearing an end.
The increase takes the benchmark federal funds rate to a target range between 4.75%-5%.
“We are committed to restoring price stability and all of the evidence says that the public has confidence that we will do so, that will bring inflation down to 2% over time. It is important that we sustain that confidence with our actions, as well as our words,” Powell said.

Trevor Blood of PSRS arranged the $9.7 million refinance of a retail shopping center in Temecula, California. The subject property is a 42,020 SF, multi-tenant retail shopping center located in the highly desirable South Temecula market. Financed with life insurance company execution, PSRS provided its borrower with a 30-year loan term. The borrower decided to defease their existing CMBS loan well in advance of their maturity to hedge against interest rate risk and benefit from a loan with a trusted life insurance company, with PSRS as a servicer.

Jen Mustard of PSRS arranged the $3.3 million refinance of a single-tenant retail building in Frisco, Texas. The subject property is a one-story, 37,448 SF retail building. While only one story, it sits two stories high and includes a mezzanine floor inside. The interior areas are typical retail showroom finish and commensurate with good quality health clubs. It recently underwent a major TI project for new tenant Crunch Fitness in 2022. Financed with life insurance company execution, PSRS provided its borrower a 42% LTV, three-year loan term, and 30-year amortization with resets available every three years. This refinance was able to provide the borrower with a lower rate and lower payments by refinancing with a new amortization, as well as some cash-out.