Associated Bank’s Breck Hanson: Character, capacity the magic formula for nabbing financing

Breck Hanson

Want to know the recipe that developers need to obtain financing for new retail centers, multi-family developments or office buildings?

Breck Hanson, executive vice president and head of commercial real estate for Associated Bank in Chicago, sums it up this way: Developers need character and capacity.

“There needs to be a track record of repaying banks in full or of having negotiated less than full payment on a mutually agreed-upon basis with financial institutions,” Hanson said. “The term I use is ‘character and capacity.’ Character is pretty self-explanatory. Developers have certainly had an opportunity to show their characters in the last three or four years. They’ve had the chance to show their capacity during these years, too.”

In other words, developers need to prove that they’ve paid their bills in the past and that they have the financial strength to do it again.

Such developers will find that the lending environment has opened up.

Other developers? They’ll still struggle to obtain financing for their projects.

“The market is still closed or very difficult for the inexperienced or financially challenged and wounded development company or individual,” Hanson said. “Those companies or individuals will still struggle to obtain commercial financing.”

– Dan Rafter

About these ads
This entry was posted in Chicago Commercial Real Estate, Finance, multi-family, office, retail and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s