3rd Quarter Newsletter
Greetings from Medalist Capital. With inflation seemingly under control and the labor market showing signs of weakness, the Federal Reserve made its first rate cut in more than four years in September and a further cut or two appears likely by the end of the year. Despite a momentary dip, long-term rates have risen over the last week or so.
In spite of the still high (relative to where they were a few years ago) rates for 30-year mortgages, home prices continue to break records. In addition, the uncertainty surrounding the upcoming Presidential election is casting a large shadow over our economic outlook. Dock worker strikes; wars in the Middle East and Ukraine; and steep increases in the cost of insurance (Helene and Milton aren’t helping on that front!). Recession, soft landing? The current economic environment is difficult to comprehend.
Through it all, Medalist Capital continues to originate and, more importantly, close loans, raise equity, and arrange sales. Through the third quarter, we have closed 48 deals, totaling more than $585 million. We have originated loans with life companies, banks, debt funds, Agencies, and CMBS lenders, and we were active in all product types.
Although our pipeline heading into the fourth quarter is down slightly compared to last year, we have 15 deals under application/contract totaling more than $200 million. Although we are experiencing significant economic uncertainty, we are seeing signs of improvement in the commercial real estate environment and expect to see continued improvement for commercial real investors and borrowers in 2025.
It is during these difficult times that our team’s experience, dedication, and deep relationships in the lending community truly make us stand apart. We are confident that we will be able to bring you the most competitive terms available in the market. We look forward to helping you navigate through the coming months.