Headlines

“Happy Halloween!”

“ULI Fall Meeting :Content Overload”

So much to see and listen to…so little time. Now what; you missed any number of capital markets programs in LA; how do you play catch-up? Devote a specific time each day to ‘listening’ to what you missed. I understand that in a few days attendees will receive a link to the session recorded at the Fall meeting which you can in turn listen to on your computer.

That was easy!

Monday’s Numbers

The Trepp LLC survey showed spreads coming in as much as 25 basis during the most recent survey period, evidence that the market, so far, is able to function with the Euro-crises playing out in the background.

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

10/21/11

Office

342

214

212

Retail

326

207

205

Multifamily

318

188

197

Industrial

333

201

202

Average Asking Spread

330

203

204

10-Year Treasury

3.83%

3.29%

2.25%

The Cushman & Wakefield Sonnenblick-Goldman Survey for the period ending October 18th  showed spreads for 10-year mortgages basically unchanged as the markets work their way through the Euro-crises.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage
Spreads For 5 Year Commercial Real Estate Mortgages

12/31/10

3/31/11

6/30/11

9/30/11

10/18/11

Multifamily – Non-Agency

+270

+245

+230

+250

+250

Multifamily – Agency

+280

+250

+210

+255

+255

Regional Mall

+280

+260

+265

+300

+320

Grocery Anchored

+280

+260

+250

+290

+310

Strip and Power Centers

 

 

+270

+310

+330

Multi-Tenant Industrial

+270

+265

+255

+295

+315

CBD Office

+280

+260

+255

+290

+315

Suburban Office

+300

+270

+270

+310

+330

Full-Service Hotel

+320

+300

+275

+335

+340

Limited-Service Hotel

+400

+325

+310

+345

+350

5-Year Treasury

2.60%

2.23%

1.52%

0.99%

1.05%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Fixed Rate Commercial Mortgage

Spreads For 10 Year Commercial Real Estate Mortgages

12/31/10

3/31/11

6/30/11

9/30/11

10/18/11

Multifamily – Non-Agency

+190

+180

+185

+240

+240

Multifamily – Agency

+200

+185

+175

+235

+235

Regional Mall

+175

+180

+190

+250

+250

Grocery Anchor

+190

+185

+200

+240

+240

Strip and Power Centers

 

 

+195

+255

+255

Multi-Tenant Industrial

+190

+190

+190

+250

+250

CBD Office

+180

+180

+190

+250

+250

Suburban Office

+190

+190

+195

+255

+260

Full-Service Hotel

+290

+230

+225

+300

+310

Limited-Service Hotel

+330

+260

+245

+325

+325

10-Year Treasury

3.47%

3.45%

2.94%

2.01%

2.14%

Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type

Mid-Point of Floating-Rate Commercial Mortgage

Spreads For 3 – 5 Commercial Real Estate Year Mortgages

12/31/10

3/31/11

6/30/11

9/30/11

10/24/11

Multifamily – Non-Agency

+250-300

+225-325

+200-260

+225-250

+215-225

Multifamily- Agency

+300

+250-310

+220-260

+230-265

+220-265

Regional Mall

+275-300

+225-300

+205-270

+225-275

+215-275

Grocery Anchored

+275-300

+225-300

+205-275

+215-275

+205-275

Strip and Power Centers

 

 

+225-300

+225-300

+225-300

Multi-Tenant Industrial

+250-350

+250-350

+230-325

+250-325

+250-325

CBD Office

+225-300

+225-300

+215-300

+240-300

+235-300

Suburban Office

+250-350

+275-350

+250-325

+265-325

+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%

0.24%

0.25%

3-Month LIBOR

0.30%

0.28%

0.25%

0.37%

0.41%

* A dash (-) indicates a range.

Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA (1): +5.65%
S & P 500 (2)+2.18%
NASDAQ (3): +3.18%
Russell 2000 (4):-2.885%
MSCI U.S. REIT (5):+5.85%

 (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

10/30/2011

3-Month

0.12%

0.01%

6-Month

0.18%

0.06%

2 Year

0.59%

0.29%

5 Year

2.01%

1.10%

10 Year

3.29%

2.29%