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Show I X (j f! I I ' i: t t 5 ; i ( I 1 i ! $ ? 1 i j lri Enterprise Review , 7, 1976 Lenders Hungry for Projects to Satisfy Funds Mortgage rates on apartments and commercial proper- ties continue to decline. Advance Mortgage Corporation reported last week. Typical rates on projects secured by strong tenant credit declined 14 percent in March and a total of up to 34 percent since the year began. Typical rates on apartments and shopping centers declined fractionally during the month. , Page 9b Further easing in rates is likely over the next several months. Advance found in its monthly survey of bench mark rates. But lenders' standards for loan quality remain rigorous and may resist easing for at least a few months. down from 9-1- - 4 9-1- 2 percent a month ago and from a firm percent at the end 9-- 34 of 1975. (Credit-secure- d projects may be shopping centers office or industrial buildings.) Its current benchmark rate for apartment mortgages is 8 percent, down from 2 percent a month ago and from 10 4 percent at the end of 9-- 12 9-5- 9-- 34 9-1- 10-1- 1975. The benchmark rate for the medium-size- shopping d - 4 centers is 8 percent, down from a flat 9.34 percent a month ago and from 10 percent at the end of 1975. Mortgages on existing properties comand rates 18, and more rarely, 14 percent lower than these benchmark rates in Benchmark Rates most regions. In the Southeast, typical Advances benchmark rate for projects commercial mortgage rates secured by strong tenant are running 14 to 12 percent credit is 9 - 4 percent, higher than the national end-of-Mar- 9-5- -- 9-3- benchmarks. Lenders Hungiy But Strict Lenders on income properties are competing aggressively for business for the first time in years-b- ut without significantly relaxing their quality standards," Advance Mortgage vice president-incom- e loans Philip H. Kozloff reports. Lenders are more willing to make concessions on rates than on standards. They are hungry for good real estate. There is a shortage of accept able projects for the available, judgment of typical current funds." rates for typical mortgages on For the first time since new construction from the 1973, Kozloff adds, mortgage institutional investors now in funds are becoming available for hotels and other specialty properties, but still on a limited basis. Among other signs of easing, more lenders are now willing to give terms up to 30 years on apartment loans and up to five years beyond the major lease on projects secured by tenant credit. the market. Rates and conditions for individual loans may vary up or down from the benchmarks depending on such factors as region, location, size, delivery date, tenant credits and lease e ratio, etc. terms, loan-to-valu- Advance Mortgage Corp., the nations second largest The benchmark rates repre- mortgage banker, is a subsidsent Advance Mortgage's best iary of Citicorp, New York. 10-18 ch 9-1- The Un-Colu- mn Advertising, Promotion, and Other Modes of Insomnia. By Ryan Vault on- At the risk of implying that Salt Lake homes are jammed with an inordinate amount of junk, Salt Lake homes are jammed with an inordinate amount of junk. I cite as evidence those stacks of advertising papers adorning the exits of grocery stores, filled with notices of used toasters, next to new baby buggies, '62 Chevys (with carpeted dash)-a- nd display ads. Utahs classified newspaper business could well be described as an industry, judging by their proliferation in just a few short years. There are currently three papers battling for an exclusive on Nickel and Magic Ads, two hardened your garage sale-B- ig veterans of eight years in the Salt Lake valley, and Happy Ads, the aggressive newcomer. lay There is, of course, a second front to their ch hostility! (I talked over the advertising. And my, phone with the spokesman for each paper. Without exception, each eventually lambasted his competitors, at which point the interview deteriorated into something like a conversation between Captain Ahab and the Department of Animal Control. They really dont like each other.) In any case, each paper claims an indisputable advantage over their competitors for the display advertiser. Magic Ads and Happy Ads have a wider column than Big Nickel, thus their claim of greater value per advertising dollar. However, Big k Nickel counters with the fact that their paper remains on the stands for seven days exposure time, versus the competitors, which print twice a week, reducing the exposure time of each issue. Magic Ads claim greater reader loyalty than the other two because its been in Salt Lake the longest (only slightly longer). Unlike Happy Ads, Magic Ads and Big Nickel dont list their liners under classified headings, thus assuring that readers must peruse the entire paper and be exposed to all display ads on each page. Although Happy Ads prints twice a week, they claim that the paper is kept a full seven days because theyve printed a TV schedule inside. Big Nickel says their service cant be beat. Theyll bend over backwards to cooperate, implying shorter deadlines, greater flexibility. Believe me, it gets worse. Print runs for each paper vary from issue to issue; the number of copies not picked up from the stand vary; and column inch costs-- in at least one of these papers-w- ill vary from ad to ad, depending upon how good of a horse trader the advertiser is. Needless to say, they wront be looking towards mathematicians for an endorsement. However, most mediums, do have their strong points. Because these papers are nearly exclusively ads and must be picked up by the reader, attention to these ads is reasonably assured (as opposed to broadcast and daily papers where interest is vested in the programming and articles, not the ads). Secondly, they do have reasonable demographics. The assumption can be made that the readers are bargain hunters items. Generally speaking, theyre probably after second-han- d in the lower income brackets. Thus, jewelry stores, high fashion boutiques, etc., would be ill advised to use them as an ad medium. However, if your products are recap tires, used cars, inexpensive variety items, discount food, and the like, these papers may be an excellent place to invest your display advertising dollars. OUR KNOWS IN YOUR BUSINESS! war-disp- my-su- We know how to get your sales prospects every week for new profitable leads. Try the newspaper that knows your needs. once-a-wee- That's all. ountaIn coma! pECORd 952 West 1 500 South Salt Lake City, Utah 84 1 08 Telephone 484-449- 5 1 r FREE SAMPLE ORDER 1 INTERMOUNTAIN COMMERCIAL RECORD 1952 West 1500 South Salt Lake City, Utah 84104 Phone: 484-449- 5 Gentleman: Pleese send a s ample copy of the INTERMOUNTAIN COMMERCIAL RECORD . Firm Name Your Name .Title Address City Date, State, -- Zip Phone ER75 j |