$3,750,000 Cash-Out Refinance of a Mixed-Use Property in Laguna Beach, California.
FINANCED The Babb Building
Lender: Credit Union City: Laguna Beach, CA Size: 10,400 SF Term: 10-year term; 30-year amortiation
Ricky Giancola of PSRS arranged the
$3.75MM cash-out refinance of the historic Babb Building, a mixed-use property in Laguna Beach, CA. Built in 1936 at the corner of the PCH and Thalia Street, the subject is home to a long-standing staple in the Laguna surf community, the Thalia Surf Shop. The property also features other retail and residential uses on the ground floor, with residential units overlooking the ocean on the second floor. Financed with credit union execution, PSRS was able to provide for its borrower a 10-year term and a 30-year amortization.
Recent News
U.S. Inflation Fuels Spike in U.S. 10-year Treasury yields 10bps back towards 1.55%
The latest US Consumer Price Inflation report (Oct) has triggered a significant move higher in the US 10-year yield. On the day, 10-year yields are up just shy of 10bps, having rallied from around 1.44% to close to the 1.55% mark.
Higher bond yields mean bond prices have fallen. Higher inflation eats away at the value of a bond by reducing the future value of the bond’s cash flow (coupon and principal payments).
$1.2T Infrastructure Bill Passes; What it means for CRE
The House of Representatives passed this past Friday the Infrastructure Investment and Jobs Act, sending a $1.2 trillion bill to Biden's desk set to be signed this Monday. The infrastructure bill will be paid by partially using $650B in unspent pandemic stimulus money and $550B of new spending. The new spending is partially funded by a $40B investment for the IRS, projected to bring back $100B in additional tax revenue, as well as a $20B program to bring in $180B in private investment.
One small piece of the bill that could have an outsized impact on commercial real estate is a $1B fund for reconnecting communities, most likely to be neighborhoods of color, separated or otherwise disrupted by highways and other pieces of infrastructure in the 20th century. A $50B provision in the bill to improve resilience against extreme weather and national disasters and
the environmental remediation component could be both directly impact or create commercial real estate projects, Bisnow reports.
The new $550B in spending spanned across the next five years is broken down in the following list, according to GlobeSt.com.
Roads, bridges, and major
infrastructure: $110 billion
Public transit: $39 billion
Railways: $66
billion
Power grid: $65 billion
Electric vehicles, buses, and charging stations: $15 billion
