The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders widened between October 8th and October 15th. During the period, 10-year Treasury bond yields remained flat, with average all-in cost equal to equal to 4.86 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

9/17

9/24

10/1

10/8

10/15

Office

342

248

246

260

240

248

Retail

326

231

231

240

224

233

Multifamily

318

207

212

215

208

207

Industrial

333

230

230

236

221

231

Average Asking Spread

330

229

229

237

224

231

10-Year Treasury

3.83%

2.60%

2.51%

2.39%

2.56%

2.55%

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

8/12/10

8/31/10

9/16/10

10/13/10

Multifamily – Non-Agency

+360

+300

+300

+280

+280

Multifamily – Agency

+220

+240

+240

+240

+240

Regional Mall

+450

+300

+290

+290

+280

Strip/Power Center

+460

+325

+300

+300

+285

Multi-Tenant Industrial

+435

+300

+280

+280

+275

CBD Office

+435

+310

+270

+270

+270

Suburban Office

+465

+325

300

+300

+300

Full-Service Hotel

+500

+400

+400

+400

+375

Limited-Service Hotel

+500

+450

+450

+450

+450

5-Year Treasury

2.60%

1.58%

1.41%

1.51%

1.17%

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

8/12/10

8/31/10

9/16/10

10/13/10

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

+220

+210

+200

+200

Multi-Tenant Industrial

+420

+230

+205

+200

+190

CBD Office

+330

+210

+225

+190

+190

Suburban Office

+355

+225

+225

+220

+220

Full-Service Hotel

+550

+350

+350

+350

+340

Limited-Service Hotel

+575

380

+380

+380

+380

10-Year Treasury

3.85%

2.71%

2.61%

2.76%

2.45%

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

8/12/10

8/31/10

9/16/10

10/13/10

Multifamily – Non-Agency

+300 – 400

+275-300

+275-300

+275-325

+250-300

Multifamily- Agency

NA

NA

NA

NA

NA

Regional Mall

+475 – 600

+300-350

+275-350

+275-350

+275-350

Strip/Power Center

+450 – 650

+300-350

+275-350

+275-350

+275-350

Multi-Tenant Industrial

+400 – 500

+275-350

+250-350

+250-350

+250-350

CBD Office

+425

+275-350

+225-300

+225-300

+225-300

Suburban Office

+425

+300-350

+250-350

+250-350

+250-350

Full-Service Hotel

+600

+400-550

+375-550

+375-500

+375-500

Limited-Service Hotel

+750

+450-600

+450-600

+450-550

+450-600

1-Month LIBOR

0.23%

0.40%

0.26%

0.26%

0.26%

3-Month LIBOR

0.25%

0.62%

0.31%

0.31%

0.29%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +6.76%
S & P 500 (2):+6.10%
NASDAQ (3): +9.27%
Russell 2000 (4): +10.93%
MSCI U.S. REIT (5):+23.69%

 (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

10/22/10

3-Month

.016%

0.15%

0.15%

0.12%

6-Month

0.25%

0.23%

0.19%

0.17%

2 Year

0.99%

1.06%

0.41%

0.35%

5 Year

2.60%

2.62%

1.26%

1.15%

10 Year

3.85%

3.88%

2.51%

2.55%

Source: Bloomberg LLP.