Headlines

Quote of the Week: “Have the major losses caused by the downturn passed through the system? Not even close. We’ve barely started,” says Ann Hambly, President and Chief Executive Officer, 1st Service Solutions, a firm specializing in assisting borrowers with workouts (courtesy of Real Estate Finance & Investment).

Comment:  I hope she’s overly pessimistic! 

Monday’s Numbers

The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders widened 5 basis points (0.05%) while Treasuries narrowed. Net, net: financing remains available at attractive rates (5.25%+/-).

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

2/28/2011

3/5/2011

3/11/2011

3/18/2011

Office

342

214

188

183

182

188

Retail

326

207

177

175

171

174

Multifamily

318

188

159

159

156

158

Industrial

333

201

173

171

168

174

Average Asking Spread

330

203

174

172

169

174

10-Year Treasury

3.83%

3.29%

3.48%

3.49%

3.40%

3.27%

Source: Commercial Mortgage Alert; Trepp.

The Cushman & Wakefield Sonnenblick-Goldman Survey – to be updated shortly.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 5 Year Commercial Real Estate Mortgages

12/16/10

1/20/11

2/3/11

2/15/11

3/2/11

Multifamily – Non-Agency

+270

+250

+250

+250

+245

Multifamily – Agency

+280

+260

+255

+255

+250

Regional Mall

+280

+260

+260

+260

+260

Grocery Anchored

+280

+265

+265

+260

+260

Multi-Tenant Industrial

+270

+270

+270

+270

+265

CBD Office

+280

+260

+260

+260

+260

Suburban Office

+300

+270

+270

+270

+270

Full-Service Hotel

+320

+300

+300

+300

+300

Limited-Service Hotel

+400

+350

+330

+330

+325

5-Year Treasury

2.60%

2.05%

2.06%

2.36%

2.17%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 10 Year Commercial Real Estate Mortgages

12/1610

1/20/11

2/3/11

2/15/11

3/2/11

Multifamily – Non-Agency

+190

+190

+190

+180

+180

Multifamily – Agency

+200

+195

+200

+190

+185

Regional Mall

+175

+180

+180

+180

+180

Grocery Anchor

+190

+185

+185

+185

+185

Multi-Tenant Industrial

+190

+190

+190

+190

+190

CBD Office

+180

+180

+180

+180

+180

Suburban Office

+190

+190

+190

+190

+190

Full-Service Hotel

+290

+250

+250

+240

+230

Limited-Service Hotel

+330

+280

+260

+260

+260

10-Year Treasury

3.47%

3.45%

3.46%

3.63%

3.47%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage

Spreads For 3 – 5 Commercial Real Estate Year Mortgages

12/1610

1/20/11

2/3/11

2/15/11

3/2/11

Multifamily – Non-Agency

+250-300

+225-300

+225-300

+225-300

+225-300

Multifamily- Agency

+300

+250-300

+250-300

+250-300

+250-300

Regional Mall

+275-300

+250-275

+250-275

+250-275

+225-275

Grocery Anchored

+275-300

+275-300

+250-300

+250-300

+225-275

Multi-Tenant Industrial

+250-350

+250-350

+250-350

+250-300

+250-350

CBD Office

+225-300

+250-300

+250-300

+250-300

+225-300

Suburban Office

+250-350

+275-350

+275-350

+275-350

+275-350

Full-Service Hotel

+300-450

+350-450

+350-400

+350-450

+350-450

Limited-Service Hotel

+450-600

+400-500

+400-500

+400-500

+400-500

1-Month LIBOR

0.26%

0.26%

0.26%

0.26%

0.26%

3-Month LIBOR

0.30%

0.30%

0.31%

0.31%

0.31%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +5.56%
S & P 500 (2):+4.38%
NASDAQ (3): +3.32%
Russell 2000 (4):+4.38%
MSCI U.S. REIT (5):+2.63%
_____
 (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

3/12/2011

3/19/2011

3/16/2011

3-Month

0.12%

0.07%

0.06%

0.08%

6-Month

0.18%

0.13%

0.13%

0.16%

2 Year

0.59%

0.64%

0.58%

0.73%

5 Year

2.01%

2.06%

1.94%

2.16%

10 Year

3.29%

3.40%

3.27%

3.44%

Source: Bloomberg LLP.