Much of the growth stems from customized financing solutions for multifamily, industrial, self-storage and retail sectors
Commercial real estate realized an 83% overall increase in loan originations, which included refinancing and acquisitions – activity expected to continue in 2022
TIAA Bank announced that its Commercial Real Estate (CRE) business enjoyed a record year in 2021, as its customized financing solutions and growth focus spurred an 83% increase in the bank’s overall CRE volume.
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Many of the nationwide loan originations focused on the multifamily, industrial, self-storage and retail sectors. Like much of the market, the business was weighted toward refinance activity – both cash-out and cash-neutral – but the number of acquisitions also increased, a trend expected to continue in 2022.
“The market continues to be incredibly competitive with a wide range of financing options continuing to drive spread compression across asset classes, particularly in multifamily and industrial. In this competitive market, we’re proud to have achieved a record year in total volume productivity in 2021, especially as we experience the ongoing ripple effects of the pandemic,” said Ellen Comeaux, TIAA Bank’s Senior Vice President and Commercial Division Leader. “As we adapt to this new normal and anticipate rising interest rates in the year ahead, we’re committed to remaining nimble to best serve the financing needs of our clients.”
Overview of Tailored Solutions from 2021 Transactions
Of the 2021 transactions, multifamily accounted for 42%, self-storage accounted for 16%, retail accounted for 13% and industrial accounted for 10%.
The majority of clients sought to lock in historically low rates with long-term fixed rate financing, although other clients took advantage of TIAA Bank’s flexible-rate structures, such as rate reset and hybrid.
Tailored solutions for customers included:
- A $21 million cash-out refinance with 66% loan-to-value (LTV) financing for a multifamily project in Cincinnati.
- A $7.5 million medical office acquisition with 61% LTV in Phoenix.
- A $10 million, cash-out refinance with 60% LTV financing for an industrial property in Houston.
- A $75 million senior loan participation in a 27-student housing portfolio with 19 universities nationwide.
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Planning for 2022 Growth
As TIAA Bank plans to continue its CRE growth, they have expanded their originations team by adding three additional CRE account executives to their team:
- Lauren Ervin will serve Florida. She began her CRE career in 2008 and has been with TIAA Bank (formerly EverBank) for 10 years. In her role as an associate sales rep. in 2021, Lauren was part of deal teams that contributed to more than $770 million in funded volume.
- Misty Read will serve the Northeast. She has 15 years of experience in CRE lending with more than $1.3 billion in funded volume.
- Joey Vieceli will serve Northern California. He began his commercial finance career in 2017 after joining TIAA Bank (formerly EverBank). In his role as associate sales rep. over the past three years, Joey was part of deal teams that contributed more than $500 million in funded volume.
“I’m thrilled to welcome Lauren, Misty and Joey to our originations team,” Comeaux said. “All across the country, our team has done an excellent job during such an uncertain time, working tirelessly for our clients, generating incredible results for our business and showcasing how we’re a finance provider of choice to a wide range of real estate market participants. Our new team members will help us continue growing in 2022.”
TIAA Bank’s CRE business specializes in financing single-tenant, multi-tenant and multifamily commercial properties nationwide while bringing a deep level of industry expertise, reliable and fast service and competitive rates and terms to every deal closed.
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