In the June 15-21, 2007 issue of the Puget Sound Business Journal (PSBJ), Reid Adamson of Baldwin Resource Group advises real estate developers: “Don’t just choose a banker — chose right bank”. The recent new guidelines on the level of Commercial Real Estate (CRE) loans to banks’ capital can impact the developers ability to get loans from their long-time banker.
As you read Adamson’s list, consider if you are clearly communicating your good fit to your current borrowers, or demonstrating your better fit for clients not yet yours.
In banking since 1975, he has seen a real estate downturn or two. Adamson recommends developers work with a bank:
- that understands commercial real estate.
- whose commitment to CRE has been consistent.
- who has more than one officer who understands the local CRE market.
- (and banker) that takes the time to understand the project.
- (and banker) who is able to articulate its strategy about the local CRE market and its role in it.
If your developer clients are reading PSBJ this week, are they reassured or are they out looking?