James Craig Is Increasing Access to Real Estate Financing in Southwestern Ontario

The light bulb went off for CBRE’s Kitchener, ON-based Vice President James Craig when he first learned that CBRE Capital had become a Canada Mortgage and Housing Corp. (CMHC)-approved lender.

“It got the wheels turning for me,” he says. “I wondered, Which are the groups lending here in Waterloo Region and is there an opportunity for CBRE to take a lead role in rolling out the debt into the Region?” 

Turns out the area was underserved, with few local offices focusing on CMHC debt opportunities. After researching and developing a business plan for the market, Craig came to the conclusion that most of the commercial real estate debt provided in Southwestern Ontario (SWO) comes from outside of the area.

“It’s usually Greater Toronto Area (GTA) players parachuting into the market, or even out of province lenders servicing clients in tertiary markets in Ontario,” he says. “No one local is out in the market brokering transactions.

“When I realized that no one here was taking it on from a high-level sophisticated point of view, I was excited to step up.”

Craig’s been a broker since 2002, working in all areas of commercial real estate sales and leasing. He spent the last 15 years focusing on multifamily investment properties in Waterloo Region and SWO as part of CBRE’s National Apartment Group.

“I have a wide breadth of knowledge of this market, the multifamily inventories out there, how the buildings operate and who the main players are in the space.”

Joining CBRE Capital

Craig moved to CBRE Capital at the end of last year and has been collaborating with Christos Panagiotakos from the CBRE Ottawa office to better support areas in Ontario outside the GTA. Their primary focus is on CMHC funding of multi-residential projects, along with land, office, retail, and industrial assets.

Amid Canada’s housing crisis, Craig says, “we’re going to need a lot of homes built in the next decade, and there’s going to be a lot of apartments constructed as part of that.”

Prior to joining CBRE Capital, Craig spent years on the brokerage side, developing a keen understanding of financing and building development proformas for his clients.

“So it was a natural transition to make that a focus of my work with CBRE Capital, especially in the secondary and tertiary markets outside the GTA, which don’t get a lot of specialized attention. That’s where my local knowledge will help get more things built.

“I see a deeper runway of opportunity on the debt side of the business than on the brokerage side.”

Integration of Services

It strengthens CBRE’s hand to have a SWO-based debt expert who, with support from brokerage colleagues, can help businesses looking to buy or build commercial real estate.

“If you can’t access debt then most transactions will never be realized," Craig says. "Having someone to strategize about debt in addition to property specifics is another arrow in the CBRE quiver. It broadens the gamut of services we offer as a company and reinforces how we can help in the development of apartments.”

It’s still early days for CBRE Capital in SWO but Craig says “we’re having a fair bit of success with clients wanting to know more about what we do.  As a result, we are underwriting a number of projects from small to large. With CBRE already a respected brokerage partner, there is interest in learning what we can bring to the table from a debt perspective.”  

Craig worked with Pangiatakos on arranging debt for an affordable multifamily project in Brockville, ON – the first ever term loan issued through CBRE Capital – and he’s collaborated with him on several other construction deals in Ottawa.

Locally, Craig says there are a number of significant projects he is talking to developers about arranging funding for. “We’re seeing lots of great leads and opportunities. It’s just a matter of time before we have more debt deals here.

“The economy is going to dictate how many shovels go into  the ground, but we’re ready to go the minute there is an opening in the marketplace,” he adds. “There is no shortage of opportunities in SWO.”

Deep Market Knowledge

Craig’s value proposition is that he’s a local expert with deep market knowledge. “And so we have a better understanding of comparable data, whether it’s recent sales or current rental data," he says. "We have better information at our fingertips.

“It means we’re able to provide more comprehensive applications to CMHC and lenders in general, which is the greatest value we can offer locally. With local banking relationships, it will help if someone locally speaks the same language and can overcome obstacles to help achieve a client’s objectives.”

There’s value in leveraging CBRE’s nationwide platform, too. “We have a very tight group across the country,” Craig says. “So we’re constantly getting better as a team.”

As the CBRE platform continues to grow, it allows clients to have a one-stop shop for services alongside Debt and Structure Finance, such as Valuation and Appraisal, Brokerage, Project Management, Cost Consultant, Development Strategy and Consulting.

“Having all of these resources available to our clients allows for a smoother process,” says Craig. “It also provides us with stronger data at our fingertips, which enables us to speak more intelligently about local specifics.”

“Money makes the world go around and I’m excited to play a role in strengthening the communities that have been a big part of my life and career.”