Q: What is the current market like in Indianapolis right now?
Chris Bruzas: Transaction volume is currently down, but demand for higher quality assets and/or higher going in yields remain strong. This is also reflected in lack of cap rate expansion in the first quarter of 2023.
New construction deliveries are concentrated in Hamilton County (Carmel, Fishers, Noblesville) and downtown submarkets. Berkadia’s Q1 2023 report card.
Q: How does Indianapolis differ from the rest of the country in terms of commercial real estate dealmaking, activity, and areas of focus?
Sam Orman: Berkadia Indianapolis covers a wide spectrum of commercial real estate financing from small balance agency transactions to large debt fund transactions on midrise mixed-used developments. We work alongside our clients as trusted advisors to search for the most accretive financing solutions to meet their business plans and goals. We maintain deep relationships with local, alternate nationwide capital sources, and the agencies to ensure we deliver the best available execution for our clients.
Q: What do you expect in the second half of 2023? What’s your pipeline like?
Chris Bruzas: Our team anticipates seeing an increase in refinance and acquisition activity at the end of 2023. On the investment sales side, I’ve seen an uptick in BOV activity, but finding realistic sellers that understand where values are today has become slimmer than ever. Berkadia continues to provide realistic feedback and advice, whereas some competitors have chosen to go the opposite route and do what is best for them, not the client. On the mortgage banking side of the ledger, our team has seen more underwriting requests both for refinances and acquisitions, as maturities loom and rate caps near expiration on agency, debt fund, and bank floating rate loans.