Monday’s Numbers: April 9, 2012

Spreads reported by Trepp LLC widened during the survey period, fully giving up recent gains. Mortgage pricing remains very attractive for borrowers.

April 9, 2012

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Spreads reported by Trepp LLC widened during the survey period, fully giving up recent gains. Mortgage pricing remains very attractive for borrowers.

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	12/31/11	3/30	Month Earlier
Office	342	214	210	199	182
Retail	326	207	207	187	175
Multifamily	318	188	198	177	158
Industrial	333	201	205	181	171
Average Spread	330	203	205	183	171
10-Year Treasury	3.83%	3.29%	1.88%	2.20%	1.95%

Over the past month, the Cushman & Wakefield Sonnenblick-Goldman Survey 10-year rates improved as much as 40 basis points for some property sectors.

Property Type	Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages
	12/31/10	1/5/12	1/26/12	2/28/12	3/28/12
Multifamily - Non-Agency	+270	+245	+240	+240	+230
Multifamily – Agency	+280	+255	+245	+210	+195
Regional Mall	+280	+300	+300	+300	+275
Grocery Anchored	+280	+295	+295	+290	+270
Strip and Power Centers		+320	+320	+315	+295
Multi-Tenant Industrial	+270	+305	+310	+310	+285
CBD Office	+280	+310	+310	+295	+270
Suburban Office	+300	+320	+320	+310	+290
Full-Service Hotel	+320	+350	+350	+350	+325
Limited-Service Hotel	+400	+360	+360	+360	+335
5-Year Treasury	2.60%	0.89%	0.78%	0.83%	1.03%
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	1/5/12	1/26/12	2/28/12	3/28/12
Multifamily - Non-Agency	+190	+205	+210	+210	+200
Multifamily – Agency	+200	+200	+205	+180	+165
Regional Mall	+175	+245	+245	+235	+275
Grocery Anchor	+190	+240	+240	+230	+270
Strip and Power Centers		+255	+255	+250	+290
Multi-Tenant Industrial	+190	+245	+255	+250	+280
CBD Office	+180	+250	+240	+320	+270
Suburban Office	+190	+265	+260	+250	+290
Full-Service Hotel	+290	+300	+290	+290	+325
Limited-Service Hotel	+330	+310	+315	+315	+345
10-Year Treasury	3.47%	2.00%	1.97%	1.90%	2.21%
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	1/5/12	1/26/12	2/28/12	3/28/12
Multifamily – Non-Agency	+250-300	+200-250	+200-250	+200-250	+200-250
Multifamily- Agency	+300	+220-265	+220-265	+220-265	+220-265
Regional Mall	+275-300	+250-350	+210-265	+200-265	+200-265
Grocery Anchored	+275-300	+240-325	+200-275	+200-275	+200-275
Strip and Power Centers		+250-350	+225-300	+225-300	+225-300
Multi-Tenant Industrial	+250-350	+270-350	+225-305	+225-305	+225-305
CBD Office	+225-300	+275-350	+225-300	+225-300	+225-300
Suburban Office	+250-350	+300-350	+250-325	+250-325	+250-325
Full-Service Hotel	+300-450	+375-475	+350-425	+275-400	+275-400
Limited-Service Hotel	+450-600	+375-550	+400-500	+350-550	+325-450
1-Month LIBOR	0.26%	0.30%	0.27%	0.24%	0.24%
3-Month LIBOR	0.30%	0.58%	0.55%	0.49%	0.47%
* A dash (-) indicates a range.
Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA ⁽¹⁾: +6.90%
S & P 500^(2):+11.17%
NASDAQ⁽³⁾: +18.25%
Russell 2000 ⁽⁴⁾:+10.44%
Morgan Stanley U.S. REIT ⁽⁵⁾:+8.39%
_____
^{(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	12/31/11	4/7/12
3-Month	0.12%	0.01%	.07%
6-Month	0.18%	0.06%	.13%
2 Year	0.59%	0.24%	.31%
5 Year	2.01%	0.83%	0.90%
7 Year			1.43%
10 Year	3.29%	1.88%	2.05%

Key Rates (in Percentages)
	Current	1 Mo. Prior	3 Mo. Prior	6 Mo. Prior	1 Yr. Prior
Fed Funds Rate	0.11	0.12	0.07	0.08	0.10
Federal Reserve Target Rate	0.25	0.25	0.25	0.25	0.25
Prime Rate	3.25	3.25	3.25	3.25	3.25
US Unemployment Rate	8.20	8.30	8.50	9.00	8.90
1-Month Libor	0.24	0.24	0.30	0.24	0.24
3-Month Libor	0.47	0.47	0.58	0.38	0.29

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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.