The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders was mixed with some widening and some narrowing between October 22nd and October 29th. During the period, 10-year Treasury bond yields came in 5 basis points, with average all-in cost equal to 4.83 percent.

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

10/1

10/8

10/15

10/22

10/29

Office

342

260

240

248

244

253

Retail

326

240

224

233

230

234

Multifamily

318

215

208

207

212

205

Industrial

333

236

221

231

229

226

Average Asking Spread

330

237

224

231

229

230

10-Year Treasury

3.83%

2.39%

2.56%

2.55%

2.60%

2.53%

Source: Commercial Mortgage Alert; Trepp.

Spreads in the October 13Cushman & Wakefield Sonnenblick-Goldman fixed and floating mortgage rate survey  (below) remained basically unchanged from the prior survey period as lenders appear content to write loans in the high 4.00 to low 5.00 percent range, a trading range most likely to be vogue for the balance of 2010.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 5 Year Commercial Real Estate Mortgages

1/6/10

8/31/10

9/16/10

10/13/10

10/27/10

Multifamily – Non-Agency

+360

+300

+280

+280

+280

Multifamily – Agency

+220

+240

+240

+240

+250

Regional Mall

+450

+290

+290

+280

+290

Strip/Power Center

+460

+300

+300

+285

+295

Multi-Tenant Industrial

+435

+280

+280

+275

+275

CBD Office

+435

+270

+270

+270

+270

Suburban Office

+465

300

+300

+300

+300

Full-Service Hotel

+500

+400

+400

+375

+375

Limited-Service Hotel

+500

+450

+450

+450

+450

5-Year Treasury

2.60%

1.41%

1.51%

1.17%

1.14%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 10 Year Commercial Real Estate Mortgages

1/6/10

8/31/10

9/16/10

10/13/10

10/27/10

Multifamily – Non-Agency

+300

+180

+180

+180

+180

Multifamily – Agency

+220

+190

+190

+190

+190

Regional Mall

+350

+200

+200

+200

+200

Strip/Power Center

+350

+210

+200

+200

+205

Multi-Tenant Industrial

+420

+205

+200

+190

+190

CBD Office

+330

+225

+190

+190

+190

Suburban Office

+355

+225

+220

+220

+220

Full-Service Hotel

+550

+350

+350

+340

+340

Limited-Service Hotel

+575

+380

+380

+380

+380

10-Year Treasury

3.85%

2.61%

2.76%

2.45%

2.71%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage

Spreads For 3 – 5 Commercial Real Estate Year Mortgages

1/6/10

8/31/10

9/16/10

10/13/10

10/27/10

Multifamily – Non-Agency

+300 – 400

+275-300

+275-325

+250-300

+275-325

Multifamily- Agency

NA

NA

NA

NA

NA

Regional Mall

+475 – 600

+275-350

+275-350

+275-350

+275-350

Strip/Power Center

+450 – 650

+275-350

+275-350

+275-350

+275-350

Multi-Tenant Industrial

+400 – 500

+250-350

+250-350

+250-350

+250-350

CBD Office

+425

+225-300

+225-300

+225-300

+225-300

Suburban Office

+425

+250-350

+250-350

+250-350

+250-350

Full-Service Hotel

+600

+375-550

+375-500

+375-500

+375-500

Limited-Service Hotel

+750

+450-600

+450-550

+450-600

+450-600

1-Month LIBOR

0.23%

0.26%

0.26%

0.26%

0.26%

3-Month LIBOR

0.25%

0.31%

0.31%

0.29%

0.29%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +9.74%
S & P 500 (2):+9.93%
NASDAQ (3): +13.65%
Russell 2000 (4): +16.17%
MSCI U.S. REIT (5):+27.48%

 (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

1/6/10

4/9/10

9/30/10

11/6/10

3-Month

.016%

0.15%

0.15%

0.11%

6-Month

0.25%

0.23%

0.19%

0.15%

2 Year

0.99%

1.06%

0.41%

0.37%

5 Year

2.60%

2.62%

1.26%

1.09%

10 Year

3.85%

3.88%

2.51%

2.53%

Source: Bloomberg LLP.