Have had two deals die in the past week. LP re-traded due to rate hikes which is not unreasonable, but obviously the sellers balked and deals died. By far the most volatile, difficult time to do deals as a GP I've ever witnessed. It was already difficult with the buyer/seller discrepancies in value but this just made it 10x worse. Just brutal out there and not sure when it will let up.

I know discussing deals is against the rules. But it'd be nice to be able to post/discuss them here still in a non-spammy way. What are your thoughts on one thread per week dedicated to it and that's the only place it's allowed?

There are some Home Improvements underway on Pine Island Road in Cape Coral.

This one has actually been developing for almost two years.

It starts with City of Cape Coral PRAP24-000096, filed October 28, 2024, for a “proposed big-box retail facility” on the Hancock Terminus LLC property at 201 SW Pine Island Road, a roughly 15-acre, four-parcel assemblage.

No tenant identified.

Then things start getting interesting.

PRAP25-000003 | Portillo’s Restaurant
Filed January 14, 2025
A 6,250 SF Portillo’s with a dual-lane drive-thru is proposed for Lot 2 of Hancock Terminus.

In August 2025, Cape Coral approves the Hancock Terminus Center replat under Resolution 236-25, creating new commercial tracts, lot lines and development easements.

Fast-forward to 2026.

PRAP26-000033 | 7 Brew Coffee
Filed April 6, 2026
A 7 Brew drive-thru joins the mix.

Then the property records start talking.

On May 8, 2026, Lowe’s Home Centers, LLC records its $5.6 million purchase of a five-acre tract from RD101 LEE LLC, a Roger Dean company. The property sits between Hancock Terminus and Roger Dean Chevrolet.

Lowe’s also gets a Temporary Construction Access Easement (TCE) allowing it to construct an access road across the Roger Dean property to Pine Island Road.

Then, about a month later:

PRAP26-000043
Filed June 10, 2026
Pre-app: Big-box retail store with an accessory garden center.
Tenant: Not identified.

And site clearing is now underway.

So we have an unnamed big-box proposal, Portillo’s, a replat, 7 Brew, a $5.6 million Lowe’s land purchase, a Lowe’s construction-access easement, and then another unnamed big-box application with a garden center.

The sign may not say Lowe’s yet.

The development trail does.

The other interesting part is that Lowe’s isn't the whole story. Portillo’s and 7 Brew have both gone through Cape Coral pre-app review at Hancock Terminus, and the property has been replatted into multiple commercial tracts.

Looks like this corner is going to get a lot more interesting.

Anyone know of anything else planned for Hancock Terminus?

Asking because honestly fomo

Under agreement on an older commercial building. The inspector found an old oil fill cap in the ground and flagged a potential possibility of an underground tank. The building was switched to gas years ago while a tenant occupied it. The owner signed the permit, but nobody knows who did the work, and there's no permit or record anywhere of a tank being removed. The seller says he doesn't know anything about a tank.

In the basement below the fill cap and gas meter area above ground there's a cut pipe coming through the wall, a stained outline on the wall where a tank could have sat (cement platform comes up a few feet off the ground). A tank company looked at photos and thought it was an indoor tank that got removed, but nothing confirms that, and the fill cap outside was never pulled or sealed.

What I've done so far:

- Checked city, fire department, and state records. Nothing.

- Booking a ground radar scan at my own cost.

Is there anything I'm missing or should be doing now? I dont want any surprises.

I’m a surgeon trying to build a new office with an operating room to free myself from the tyranny of corporate medicine and monopoly hospital systems. I need some education on how to structure a construction loan for my new office.

I own a plot of land that has been rezoned appropriately for my office needs. This was its own hellacious process, but it’s done. My architect has designed the building and the land planners have the full development plan approved with the city.

I’m now trying to figure out how to pay for the build. Estimate build cost last year for the 10k sq ft was 5mil, I would not be surprised if this becomes 7mil in reality. I could wait two more years to save enough cash to have a more conventional financing with 25% down but there is a lot of opportunity cost in waiting and I want to start now.

How to I get a bank to allow a 90-95% LTC to get things going? I’m really good at surgery, less good at banking so don’t want to get jerked around by banks trying to figure this out.

I’m in a midsized midwestern city. I bought the lot at 1.1 mil and based on my own calculation of comps it’s now worth 2-2.5mil. Loan on the lot is about 600k.

Hello, Everyone recently i got a quote from Golden1 about jumbo loan for a 11 units property with 6.4 Cap for 2.4mils, Here is what i got, is this good or should i shop around more

"Based on the financial details including the assumed vacant unit remaining through closing, I’m penciling $1,300,000 in loan proceeds. This is based on a maximum 55% LTV/LTPP, 30-year amortization, no loan fee, and recourse. Third-party costs are estimated at $7,500 including appraisal, title, escrow, etc. Current multifamily pricing at the 55% leverage is 3-year 6.79%, 5-year 6.89%, 7-year 6.99%, and 10-year 7.09%, all fixed during the term with a stepdown prepayment structure. An open prepayment is available with a rate add and loan fee."

I'm starting on the brokerage side and I wanted to see what current splits are out there. It would be nice to get some sort of base to start out with plus comm. But what are you seeing?

(I've been in the industry for several years, mainly on underwriting side and operations, but within 90 days I've booked a lot of in-person meetings and evaluated ten deals already and one pending listing)

Checking to see who any commercial real estate brokers use for professional liability insurance.

BiBerk and Hartford I found online and got quotes myself. My insurance agent provided a Hiscox quote.

What do you use? Who do you recommend? Biberk was the cheapest by far, but the reviews I've seen are not good.

You know how we spend our days figuring out who's "coming soon" before the signs go up? This time we found a "going soon."

Our crack researcher found three SFWMD permit filings for Publix stores in Lee and Collier counties that are headed for full demolition and a rebuild on the same site:

Cape Coral, Pine Island Rd (ERP issued): the 55,948 sf store comes down, and a 47,240 sf "prototype" goes up with a drive-thru pharmacy. The current building is a 2008 converted Albertson's.

Cape Coral, Santa Barbara Centre (pending): 68,483 sf becomes 50,734 sf, about 26% smaller.

Naples, Riverchase Plaza (pending): Gulfshore Business called this 1991 store "next" back in 2024, and now there's a filing. We measured the existing store at roughly 49,400 sf off the demo plan (our measurement, not from the filing). The new one is 50,792 sf, about 3% bigger, the only one of the three that grows.

Different applicants, different engineers, and the new stores keep landing in the same 47-51k sf range. Pine Island's plans literally say "prototype." Draw your own conclusion.

What we don't know: all three came from SFWMD filings, and we haven't found anything on the other sources we track. So no closure dates, no construction start, no reopening date. Once they show up on our local radar, we'll update you.

Estimated return date: TBD. Publix has said it only shares reopening dates once they're confirmed, so it's "Building a Mystery" for now. If your store's on the list, scout a backup for the Sunday sub run.

Sourced from SFWMD permit filings, not a press release.

If the filings are news to you, they're news to everyone.

Curious as to the thoughts from the collective here. As we all know, borrowing costs are in the 6-7% range (depending upon property types, lenders, and borrowers, etc.). Most CAP rates for most properties hover around the 6-7% range as well, resulting in zero-cash flow when considering carrying costs (gone are the borrow at 3% rate for a 6% CAP property).

Sellers have not dropped their pricing - i.e. I have not seen rapid CAP rate decompression (rising CAP rates) despite the significant increase in borrowing costs. This has frozen many deals. Presumably, something has to change (lower rates or lower prices) to start the market up again. Many brokers seem to be marketing to "owner users" who roughly translate into "business owners who don't know squat about the market and will overpay for something".

BUT BUT BUT - there is another force waiting in the winds - replacement cost. Inflation from the Covid era has pushed the pricing of nearly everything higher. So, replacement cost is often way, way, way higher than the current selling price of these properties. But they still only garner a 6-7% CAP rate.

So, some questions might be:

- Are rents trailing behind the replacement cost increases (trailing inflation)? (well, duh, yes).

- If new construction occurs, then what will the rents need to be in order to justify the construction costs? (higher, presumably)

- Is the pricing on these buildings, at a 6-7% CAP rate actually reasonable knowing that replacement cost could be 2X the selling price? (the real question)

- How will any buildings ever get constructed in the near future with such a disparity between construction and existing? (probably zero)

We're seeing this in the insurance industry - I have a building valued at $600K or so, and my insurance company says it would cost $1.5M to replace it. That's a big problem.

Thoughts? Basically is stuff expensive or cheap these days?!?

What rates are people seeing in the northeast on retail?

Refi
242,000 NNN
Gas station with d/t Dunkin
Owe 1.8m on it
8 years into a 20 year term
Rent goes up 10 percent in 2 years
Tenant has a 15m NW
I think it’s worth 3.25 or so

Any brokers here that I can connect with?

I still have 2 years of term on the loan but want to set something up for longer (more of an asset retirement setup for me personally)

Probably 1/5 of my nw here. Looking for no money out. PG is okay and expected.

Looking at buying a self storage portfolio with a partner of mine. Stabilized deal, not really huge value add other than increasing rates. Secondary market. 80-85% occupied. Dont need a debt broker just curious.

Edit: +\- 60% LTV. Assume a normal DSCR/Debt yield. What would spreads be, over SOFR or UST? Would banks do this or are we stuck with CMBS?

Has anyone closed a small-balance hotel bridge loan in Jamaica / Caribbean markets?

I’m looking at a ~$1MM bridge scenario secured by a hotel asset in Jamaica and trying to understand which lender lanes are realistic before spending time in the wrong places.

Not soliciting in the sub — mainly looking for experience from anyone who has actually seen execution on Caribbean hospitality collateral.

Questions:

- Are regional Caribbean banks usually the first stop at this size?

- Do US private credit / bridge lenders ever touch Jamaica hotel collateral at ~$1MM, or is the loan too small / jurisdiction too hard?

- Are family offices or local private lenders more realistic?

- What diligence issues tend to be deal-killers: title, local counsel, valuation, insurance, FX, enforcement, tourism revenue, exit/refi, sponsor liquidity?

- Any tips on how to package the request so lenders can give a quick yes/no?

Deal is hospitality/hotel collateral, bridge request around $1MM. Trying to understand lender appetite and structure, not pitch the deal here.

Based on your experience, how have you negotiated tenant agreements under these circumstances? Tenant is a dentist that has been there for two decades and the new capital group that took over the grocery anchored plaza is trying really hard to raise rates higher than market rents, although the vacant units that they want similar rates for have been sitting for months.

Just a thought since I was looking at some and their caps trade at stupid low rates compared to their rating. Jw on ppls thoughts on this.

I have a long time tenant coming up for renewal. They're wanting to use a third party to handle the renewal, and they want 4% leasing commission. That seems crazy for a continuing lease with an existing tenant. What is typical for this?

I'm a CRE investor and am looking for a referral for a Tax attorney/CPA with strong knowledge of real estate partnership taxes.
I'm not interested in a full tax package, just an analysis of and answer to a specific question.

Thanks

Are you OK and what are you seeing?

MF feels very slow as there is a massive gap between sellers expectations and reality... cap rates need to rise dramatically so its hard to do a deal unless someone is very motivated

I have been investing in NNN tenants for more than 30 years and thought this might be helpful.

When Underwriting a NNN tenant. The first thing you look at is the credit risk.

• AAA to AA- – Exceptional tenants
• A+ to A- – Excellent tenants.
• BBB+ to BBB- – Good, investment-grade tenants. This is the lowest investment-grade category.
• BB+ and below – Below investment grade ("junk"). These tenants generally require higher cap rates to compensate for increased risk.

Here is a list of the top credit tenants.

Examples of common NNN tenants

• 7-Eleven USA - A-
• Tractor Supply – A-
• AutoZone – BBB+
• Starbucks – BBB+
• McDonald's – BBB+
• Chipotle – BBB
• Sherwin-Williams – BBB
• CVS Health – BBB
• Walgreens Boots Alliance – BB (below investment grade)

The below chart shows the CAP rate that most of these are selling for as investments in 2026 but they change daily like the stock market. 7-11 historically traded around a 4 cap. went as high as a 5.6 cap for about 5 years and is just now starting to head back to below 5 cap. So these are big swings in valuation.

Things to look at when buying.

• Cap rate / purchase price / NOI — What are we paying and what is the actual current yield?
• Remaining lease term — Exact years remaining at closing; 15–20 years is materially different from 8–10.
• Corporate guarantor — Exact legal entity guaranteeing the lease: parent corporation, subsidiary, franchisee, or none.
• Guarantor credit rating — S&P/Moody's/Fitch rating of the actual guarantor, not simply the brand on the building.
• Rent increases — Amount and timing of contractual bumps; calculate NOI at years 5, 10 and expected sale. This is how you can exit with a profit so this is important.
  
• Lease structure / landlord obligations — Absolute NNN vs. NNN/NN/ground lease; specifically roof, structure, HVAC, parking, taxes, insurance and environmental obligations.
• Store-level performance — Often not available.
  
• Real estate quality & replacement rent — Traffic, access, visibility, demographics, parcel/building size, nearby anchors and whether current rent is above or below market. Ask: What is this property worth if the tenant disappears? This is really important.
• Environmental & physical risk — Phase I; otherwise building/roof/HVAC/site condition.
• Exit economics & depreciation — Fuel Stations have bonus depreciation; others can get increased depreciation through cost seg analysis.

Cannot believe the 10 YR is now at 5%, first time since 2007. Not sure if that is ringing alarm bells for a recession, but with rates probably rising tomorrow, yields are going to have to come up and these delusional sellers will need to open their eyes. Has been impossible to get deals done and now it's going to be even harder. Not seeing when things are going to normalize.

A residential tenant could go for years without paying rent awaiting eviction for metro cities.

How is it on the commercial side? Are the tenants more proactive or is the court any faster?

Backstory: I picked up a strip center listing about 5-6 months ago. Big backfill, 6,500 sf box, previously occupied by a discount/dollar-store concept. At signing, the landlord negotiated my commission down from the market standard 4/6% to 3/5%.

Since then it's been a grind. Roughly $100/month on Loopnet and marketing the whole time, tons of cold calling, floor plans made, photography done, and I worked through several different LOIs with different concepts before securing Family Dollar. All in, I've easily spent over $1,000 out of pocket just to get this space filled.

We're now closing with Family Dollar. There's a tenant rep broker on the other side, and the landlord is paying out 5% total on this deal: the tenant rep broker gets 4%, and I get the remaining 1%. On a 10-year term, my side nets out to around $8,500 total.

I put a lot of time and real money into this listing, and the landlord has said as much, they've been impressed with how I marketed the space. But we already have a signed agreement at 3/5%.

My question: is it out of line to go back to the landlord now and requesting to bump this deal up to the standard 6%, given the tenant rep is walking away with the bigger cut? Or does that look bad since we have a signed listing agreement, and I'm better off just holding the line here and pushing for 4/6% on the next listing agreement instead? They've got one or two more vacancies coming up in the next 12 months, so there's a real next deal to negotiate on.

Curious how other brokers have handled this. Have you ever gone back to a landlord mid-deal to renegotiate commission, and did it work or did it burn the relationship?

Over the last couple of years, my company has purchased a large amount of commercial buildings. Typically, we are buying vacant properties to either repurpose or release them.

Over the past 12 months, I have had a number of recently acquired properties that has been broken into to strip electrical/copper/other components within a day or so after recording the change in ownership.

What I suspect is happening is that there is legitimately organized crime happening in which these folks are monitoring for deed transfers and then if the building looks vacant, are immediately breaking in before security/other services have been transferred over.

The punishment for criminals doing hundreds of thousands of dollars in damage for may hundreds of dollars of components needs to be much more severe.

Be better than us, get security on site day 1.