Headlines
Quote of the Week: “Have the major losses caused by the downturn passed through the system? Not even close. We’ve barely started,” says Ann Hambly, President and Chief Executive Officer, 1st Service Solutions, a firm specializing in assisting borrowers with workouts (courtesy of Real Estate Finance & Investment).
Comment: I hope she’s overly pessimistic!
Monday’s Numbers
The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders widened 5 basis points (0.05%) while Treasuries narrowed. Net, net: financing remains available at attractive rates (5.25%+/-).
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 | 2/28/2011 | 3/5/2011 | 3/11/2011 | 3/18/2011 | |
Office | 342 | 214 | 188 | 183 | 182 | 188 |
Retail | 326 | 207 | 177 | 175 | 171 | 174 |
Multifamily | 318 | 188 | 159 | 159 | 156 | 158 |
Industrial | 333 | 201 | 173 | 171 | 168 | 174 |
Average Asking Spread | 330 | 203 | 174 | 172 | 169 | 174 |
10-Year Treasury | 3.83% | 3.29% | 3.48% | 3.49% | 3.40% | 3.27% |
Source: Commercial Mortgage Alert; Trepp. |
The Cushman & Wakefield Sonnenblick-Goldman Survey – to be updated shortly.
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages | ||||
12/16/10 | 1/20/11 | 2/3/11 | 2/15/11 | 3/2/11 | |
Multifamily - Non-Agency | +270 | +250 | +250 | +250 | +245 |
Multifamily – Agency | +280 | +260 | +255 | +255 | +250 |
Regional Mall | +280 | +260 | +260 | +260 | +260 |
Grocery Anchored | +280 | +265 | +265 | +260 | +260 |
Multi-Tenant Industrial | +270 | +270 | +270 | +270 | +265 |
CBD Office | +280 | +260 | +260 | +260 | +260 |
Suburban Office | +300 | +270 | +270 | +270 | +270 |
Full-Service Hotel | +320 | +300 | +300 | +300 | +300 |
Limited-Service Hotel | +400 | +350 | +330 | +330 | +325 |
5-Year Treasury | 2.60% | 2.05% | 2.06% | 2.36% | 2.17% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages | ||||
12/1610 | 1/20/11 | 2/3/11 | 2/15/11 | 3/2/11 | |
Multifamily - Non-Agency | +190 | +190 | +190 | +180 | +180 |
Multifamily – Agency | +200 | +195 | +200 | +190 | +185 |
Regional Mall | +175 | +180 | +180 | +180 | +180 |
Grocery Anchor | +190 | +185 | +185 | +185 | +185 |
Multi-Tenant Industrial | +190 | +190 | +190 | +190 | +190 |
CBD Office | +180 | +180 | +180 | +180 | +180 |
Suburban Office | +190 | +190 | +190 | +190 | +190 |
Full-Service Hotel | +290 | +250 | +250 | +240 | +230 |
Limited-Service Hotel | +330 | +280 | +260 | +260 | +260 |
10-Year Treasury | 3.47% | 3.45% | 3.46% | 3.63% | 3.47% |
Source: Cushman & Wakefield Sonnenblick Goldman. |
Property Type | Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages | ||||
12/1610 | 1/20/11 | 2/3/11 | 2/15/11 | 3/2/11 | |
Multifamily – Non-Agency | +250-300 | +225-300 | +225-300 | +225-300 | +225-300 |
Multifamily- Agency | +300 | +250-300 | +250-300 | +250-300 | +250-300 |
Regional Mall | +275-300 | +250-275 | +250-275 | +250-275 | +225-275 |
Grocery Anchored | +275-300 | +275-300 | +250-300 | +250-300 | +225-275 |
Multi-Tenant Industrial | +250-350 | +250-350 | +250-350 | +250-300 | +250-350 |
CBD Office | +225-300 | +250-300 | +250-300 | +250-300 | +225-300 |
Suburban Office | +250-350 | +275-350 | +275-350 | +275-350 | +275-350 |
Full-Service Hotel | +300-450 | +350-450 | +350-400 | +350-450 | +350-450 |
Limited-Service Hotel | +450-600 | +400-500 | +400-500 | +400-500 | +400-500 |
1-Month LIBOR | 0.26% | 0.26% | 0.26% | 0.26% | 0.26% |
3-Month LIBOR | 0.30% | 0.30% | 0.31% | 0.31% | 0.31% |
* A dash (-) indicates a range. | |||||
Source: Cushman & Wakefield Sonnenblick Goldman. |
Year-to-Date Public Equity Capital Markets
DJIA (1): +5.56%
S & P 500 (2):+4.38%
NASDAQ (3): +3.32%
Russell 2000 (4):+4.38%
MSCI U.S. REIT (5):+2.63%
_____
(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 | 3/12/2011 | 3/19/2011 | 3/16/2011 | |
3-Month | 0.12% | 0.07% | 0.06% | 0.08% |
6-Month | 0.18% | 0.13% | 0.13% | 0.16% |
2 Year | 0.59% | 0.64% | 0.58% | 0.73% |
5 Year | 2.01% | 2.06% | 1.94% | 2.16% |
10 Year | 3.29% | 3.40% | 3.27% | 3.44% |
Source: Bloomberg LLP. |