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“West Coast Braces for $16 Billion of Final Commercial Mortgage-Backed Securities [Mortgage] Maturities”

According to information published by Trepp, LLC, approximately $16.5 billion of commercial mortgage-backed securities loans securing properties located in the seven western states (Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington) will mature within in the next 12 months as they have “run out” of options to extend.  A breakdown by state and property type follows:

State

Loans Maturing

 (in $ Billions)

Property Type

Amount

(in $ billions)

AK

$52.3

Industrial

$859.7

AZ

1,852.8

Lodging

2,336.5

CA

10,288.5

Multifamily

2,926.9

HI

681.9

Office

5,998.6

NV

2,170.1

Retail

4,355.2

OR

413.1

 

WA

1,018.2

 

Total

$16,476.9

$16,476.9

Monday’s Numbers

The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders showed spreads widening an average of 5 basis points during the survey period with financing remains available in the 5 percent +/- range.

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

7/29/11

Office

342

214

183

Retail

326

207

175

Multifamily

318

188

163

Industrial

333

201

170

Average Asking Spread

330

203

173

10-Year Treasury

3.83%

3.29%

2.80%

The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ended July 28th showed fixed rate spreads widening as much as 35 basis points while floating rate spreads remained unchanged in most property sectors. Financing continues to remain 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

6/16/11

7/7/11

728/11

Multifamily – Non-Agency

+270

+245

+230

+230

+250

Multifamily – Agency

+280

+250

+210

+220

+240

Regional Mall

+280

+260

+265

+265

+280

Grocery Anchored

+280

+260

+250

+250

+270

Strip and Power Centers

 

 

+270

+270

+290

Multi-Tenant Industrial

+270

+265

+255

+260

+275

CBD Office

+280

+260

+255

+260

+275

Suburban Office

+300

+270

+270

+270

+295

Full-Service Hotel

+320

+300

+275

+285

+2300

Limited-Service Hotel

+400

+325

+310

+310

+320

5-Year Treasury

2.60%

2.23%

1.52%

1.64%

1.49%

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

6/16/11

7/7/11

728/11

Multifamily – Non-Agency

+190

+180

+185

+185

+195

Multifamily – Agency

+200

+185

+175

+180

+190

Regional Mall

+175

+180

+190

+190

+205

Grocery Anchor

+190

+185

+200

+200

+195

Strip and Power Centers

 

 

+195

+195

+210

Multi-Tenant Industrial

+190

+190

+190

+190

+230

CBD Office

+180

+180

+190

+190

+225

Suburban Office

+190

+190

+195

+195

+235

Full-Service Hotel

+290

+230

+225

+235

+250

Limited-Service Hotel

+330

+260

+245

+250

+270

10-Year Treasury

3.47%

3.45%

2.94%

3.09%

2.97%

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

6/16/11

7/7/11

728/11

Multifamily – Non-Agency

+250-300

+225-325

+200-260

+200-250

+200-250

Multifamily- Agency

+300

+250-310

+220-260

+220-260

+220-260

Regional Mall

+275-300

+225-300

+205-270

+205-270

+205-270

Grocery Anchored

+275-300

+225-300

+205-275

+205-275

+205-275

Strip and Power Centers

 

 

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+250-350

+230-325

+230-325

+230-325

CBD Office

+225-300

+225-300

+215-300

+215-300

+225-300

Suburban Office

+250-350

+275-350

+250-325

+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%

0.19%

0.19%

0.19%

3-Month LIBOR

0.30%

0.28%

0.25%

0.25%

0.25%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): -1.15%
S & P 500 (2):-4.63%
NASDAQ (3): -4.54%
Russell 2000 (4):-8.80%
MSCI U.S. REIT (5):-3.74%

 (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

8/5/2011

3-Month

0.12%

0.01%

6-Month

0.18%

0.04%

2 Year

0.59%

0.29%

5 Year

2.01%

1.25%

10 Year

3.29%

2.56%