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ULI’s Real Estate Capital Markets Conference, “Real Estate Finance and Investment 2011 – Investing, Accessing, Lending, and Sourcing Capital” is being held on June 22 – 23 in New York (Sheraton New York Hotels & Towers). For additional information, see www.uli.org/capitalmarkets.

Monday’s Numbers

The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders remained relatively unchanged during the most recent survey period. All-in costs remain in the 5.00+/- percent range and should be range bound for the foreseeable future, subject to a “Black Swan” event.

Asking Spreads over U.S. Treasury Bonds in Basis Points

(10-year Commercial and Multifamily Mortgage Loans with 50% to 59% Loan-to-Value Ratios)

12/31/09

12/31/10

6/10/11

Office

342

214

184

Retail

326

207

175

Multifamily

318

188

162

Industrial

333

201

170

Average Asking Spread

330

203

173

10-Year Treasury

3.83%

3.29%

2.97%

The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ended June 16 showed fixed rate spreads widening maybe 10 basis points and floating rate spreads narrowing maybe 5 basis points. So…financing remains available at attractive and affordable rates.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 5 Year Commercial Real Estate Mortgages

12/16/10

3/31/11

5/12/11

6/2/11

6/16/11

Multifamily – Non-Agency

+270

+245

+225

+225

+230

Multifamily – Agency

+280

+250

+200

+200

+210

Regional Mall

+280

+260

+255

+255

+265

Grocery Anchored

+280

+260

+245

+245

+250

Strip and Power Centers

 

 

+265

+265

+270

Multi-Tenant Industrial

+270

+265

+245

+245

+255

CBD Office

+280

+260

+250

+250

+255

Suburban Office

+300

+270

+260

+260

+270

Full-Service Hotel

+320

+300

+275

+265

+275

Limited-Service Hotel

+400

+325

+320

+300

+310

5-Year Treasury

2.60%

2.23%

1.88%

1.62%

1.52%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 10 Year Commercial Real Estate Mortgages

12/1610

3/31/11

5/12/11

6/2/11

6/16/11

Multifamily – Non-Agency

+190

+180

+180

+180

+185

Multifamily – Agency

+200

+185

+175

+170

+175

Regional Mall

+175

+180

+180

+180

+190

Grocery Anchor

+190

+185

+175

+175

+200

Strip and Power Centers

 

 

+190

+190

+195

Multi-Tenant Industrial

+190

+190

+185

+185

+190

CBD Office

+180

+180

+180

+180

+190

Suburban Office

+190

+190

+190

+190

+195

Full-Service Hotel

+290

+230

+220

+220

+225

Limited-Service Hotel

+330

+260

+240

+240

+245

10-Year Treasury

3.47%

3.45%

3.22%

2.99%

2.94%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage

Spreads For 3 – 5 Commercial Real Estate Year Mortgages

12/16/10

3/31/11

5/12/11

6/2/11

6/16/11

Multifamily – Non-Agency

+250-300

+225-325

+205-300

+200-275

+200-260

Multifamily- Agency

+300

+250-310

+225-310

+220-270

+220-260

Regional Mall

+275-300

+225-300

+200-275

+205-275

+205-270

Grocery Anchored

+275-300

+225-300

+210-285

+215-285

+205-275

Strip and Power Centers

 

 

+230-300

+235-300

+225-300

Multi-Tenant Industrial

+250-350

+250-350

+235-325

+230-325

+230-325

CBD Office

+225-300

+225-300

+225-300

+215-300

+215-300

Suburban Office

+250-350

+275-350

+250-350

+250-325

+250-325

Full-Service Hotel

+300-450

+350-450

+350-450

+350-450

+350-450

Limited-Service Hotel

+450-600

+400-500

+400-500

+400-500

+400-500

1-Month LIBOR

0.26%

0.22%

0.20%

0.19%

0.19%

3-Month LIBOR

0.30%

0.28%

0.26%

0.25%

0.25%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.


Year-to-Date Public Equity Capital Markets

DJIA (1): +3.69%
S & P 500 (2):+1.10%
NASDAQ (3): -1.37%
Russell 2000 (4):-0.22%
MSCI U.S. REIT (5):+6.27%
_____
 (1) Dow Jones Industrial Average. (2) Standard & Poor’s 500 Stock Index. (3) NASD Composite Index. (4) Small Capitalization segment of U.S. equity universe. (5) Morgan Stanley REIT Index.

U.S. Treasury Yields

12/31/10

6/18/2011

3-Month

0.12%

0.03%

6-Month

0.18%

0.09%

2 Year

0.59%

0.37%

5 Year

2.01%

1.53%

10 Year

3.29%

2.94%