Monday’s Numbers: March 12, 2012

Spreads reported by Trepp LLC remain “range-bound” at an average spread of 207 basis points over 10-year Treasuries. The Cushman & Wakefield Sonnenblick-Goldman Survey shows rates coming in slightly with lenders seemingly ready to lend at attractive spreads if the right deal comes their way.

March 12, 2012

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Spreads reported by Trepp LLC remain “range-bound” at an average spread of 207 basis points over 10-year Treasuries.

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	3/2/12	Month Earlier
Office	342	214	210	215	219
Retail	326	207	207	208	214
Multifamily	318	188	198	200	206
Industrial	333	201	205	204	209

Average Spread	330	203	205	207	212

10-Year Treasury	3.83%	3.29%	1.88%	1.98%	2.00%

The Cushman & Wakefield Sonnenblick-Goldman Survey shows rates coming in slightly with lenders seemingly ready to lend at attractive spreads if the right deal comes their way.

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
Multifamily - Non-Agency	+270	+245	+240	+240
Multifamily – Agency	+280	+255	+245	+210
Regional Mall	+280	+300	+300	+300
Grocery Anchored	+280	+295	+295	+290
Strip and Power Centers		+320	+320	+315
Multi-Tenant Industrial	+270	+305	+310	+310
CBD Office	+280	+310	+310	+295
Suburban Office	+300	+320	+320	+310
Full-Service Hotel	+320	+350	+350	+350
Limited-Service Hotel	+400	+360	+360	+360
5-Year Treasury	2.60%	0.89%	0.78%	0.83%
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
Multifamily - Non-Agency	+190	+205	+210	+210
Multifamily – Agency	+200	+200	+205	+180
Regional Mall	+175	+245	+245	+235
Grocery Anchor	+190	+240	+240	+230
Strip and Power Centers		+255	+255	+250
Multi-Tenant Industrial	+190	+245	+255	+250
CBD Office	+180	+250	+240	+320
Suburban Office	+190	+265	+260	+250
Full-Service Hotel	+290	+300	+290	+290
Limited-Service Hotel	+330	+310	+315	+315
10-Year Treasury	3.47%	2.00%	1.97%	1.90%
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
Multifamily – Non-Agency	+250-300	+200-250	+200-250	+200-250
Multifamily- Agency	+300	+220-265	+220-265	+220-265
Regional Mall	+275-300	+250-350	+210-265	+200-265
Grocery Anchored	+275-300	+240-325	+200-275	+200-275
Strip and Power Centers		+250-350	+225-300	+225-300
Multi-Tenant Industrial	+250-350	+270-350	+225-305	+225-305
CBD Office	+225-300	+275-350	+225-300	+225-300
Suburban Office	+250-350	+300-350	+250-325	+250-325
Full-Service Hotel	+300-450	+375-475	+350-425	+275-400
Limited-Service Hotel	+450-600	+375-550	+400-500	+350-550
1-Month LIBOR	0.26%	0.30%	0.27%	0.24%
3-Month LIBOR	0.30%	0.58%	0.55%	0.49%
* A dash (-) indicates a range.
Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA ⁽¹⁾: +5.77%
S & P 500^(2):+9.01%
NASDAQ⁽³⁾: +14.71%
Russell 2000 ⁽⁴⁾:+10.21%
Morgan Stanley U.S. REIT ⁽⁵⁾:+5.39%
_____
^{(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	3/8/12
3-Month	0.12%	0.01%	.08%
6-Month	0.18%	0.06%	.13%
2 Year	0.59%	0.24%	.32%
5 Year	2.01%	0.83%	.89%
10 Year	3.29%	1.88%	2.03%

Key Rates (in Percentages)
	Current	1 Mo. Prior	3 Mo. Prior	6 Mo. Prior	1 Yr. Prior
Fed Funds Rate	0.13	0.10	0.07	0.12	0.16
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	8.30	8.30	8.70	9.10	9.00
1-Month Libor	0.24	0.25	0.28	0.23	0.26
3-Month Libor	0.47	0.51	0.54	0.34	.031

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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.