Stephen Blank

Stephen R. Blank joined ULI in December 1998 as Senior Fellow, Finance. His primary responsibilities include: expanding ULI’s real estate capital markets information and education programs; authoring real estate capital market commentary; participating as a principal researcher and adviser for the Emerging Trends in Real Estate series of publications; organizing and participating in real estate capital markets programs at ULI events worldwide; and participating in industry meetings, seminars, and conferences. Prior to joining ULI, Blank served from December 1993 to November 1998 as Managing Director, Real Estate Investment Banking of Oppenheimer & Co., Inc. His responsibilities included: structuring, underwriting, and executing corporate financings including initial public offerings of common and preferred shares, unsecured debentures, and convertible bonds; property acquisitions, dispositions, and financing; and financial advisory services including mergers and acquisitions, corporate restructurings, and recapitalizations.

J. Allen Smith, CEO of Prudential Real Estate Investors, talks about credit, global markets, and credibility.
The Trepp survey for the most recent period showed spreads coming in a further 10-plus basis points as securitized and conventional lenders continue their war of attrition, compressing lending spreads in response to investors continuing to drive down yields on super-senior tranches of recent CMBS offerings.
Super-senior CMBS bonds are currently trading in the range of 72 basis points over ten-year interest rate swaps; half of what they were a year ago. According to ULI Senior Fellow Stephen Blank, spreads have narrowed to the point that securitized lenders are giving conventional, portfolio lenders a run for their money.
Real Estate Research Corporation’s fourth quarter 2012 Real Estate Investment Criteria survey showed investment conditions and capitalization rates mixed quarter-over-quarter with the markets seemingly needing time to catch its collective breath after a frenetic quarter during which equity capital flooded the markets.
According to the FTSE NAREIT Equity REIT Index, equity REITs produced total returns equal to 18.06 percent in 2012, including dividends equal to 3.70 percent. REITs outperformed the S&P 500 Index, the Dow Jones Industrial Average, and the NASDAQ Composite Index making 2012 the fourth year in a row that REITs have outperformed the other indices.
Against a background of estimates of roughly $60 billion in issuance in 2013, the commercial mortgage-backed securities market will get its first test of the year when a $1.4 billion offering comes to market this week.
ULI senior fellow Stephen Blank says attendeees of last week’s annual ULI/McCoy Symposium on Real Estate Finance said 2013 would be a year more to their liking and better than 2012. Participants said their companies were well positioned to benefit from shocks as well as volatility.
According to the most recent Trepp survey, spreads were flat and relatively unchanged during the most recent survey period.
According to the most recent Trepp survey, spreads widened as much as 15 basis points, marking the end—for the moment—of the “incredible shrinking” cost of securitized mortgage debt as compared to rates quoted by commercial banks and insurance companies.

Monday’s Numbers

Standard & Poor’s Rating Services reported that CMBS delinquencies declined to their lowest level in 30 months, ending October at 9.66 percent, down from 9.77 percent in September. Importantly, the principal amount of loans liquidated, restructured, or modified so that they could return to current status exceeded the amount of delinquencies offerings.

Monday’s Numbers

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