Headlines
Headlines and quotes we publish are intended to convey a sense of the terms and conditions present in the real estate capital markets.
“CoStar Agrees to Buy LoopNet for $860 Million”
First, it was consolidations among institutional real estate investment managers (CBRE/ING Real Estate Investment Management), now it’s information/execution platforms. The CoStar/LoopNet transaction will double the size of CoStar’s paid subscriber base to approximately 160,000+/-.
What’s next: REITs are always next as the market seems to remain fond of chasing down rumors of impending consolidation, mergers of equals, etc. in the REIT space.
Monday’s Numbers
The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders remained unchanged over the past two-week period. All-in cost remains in the 5.00% to 5.50% range.
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 | 4/22/11 | |
Office | 342 | 214 | 177 |
Retail | 326 | 207 | 169 |
Multifamily | 318 | 188 | 151 |
Industrial | 333 | 201 | 162 |
Average Asking Spread | 330 | 203 | 166 |
10-Year Treasury | 3.83% | 3.29% | 3.39% |
The Cushman & Wakefield Sonnenblick-Goldman survey for the period ended April 28 showed spreads narrowing 10 to as much as 25 basis points; it’s hard to imagine mortgages being priced more attractively.
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages | ||||
12/16/10 | 2/15/11 | 3/2/11 | 3/31/11 | 4/28/11 | |
Multifamily - Non-Agency | +270 | +250 | +245 | +245 | +230 |
Multifamily – Agency | +280 | +255 | +250 | +250 | +205 |
Regional Mall | +280 | +260 | +260 | +260 | +260 |
Grocery Anchored | +280 | +260 | +260 | +260 | +245 |
Multi-Tenant Industrial | +270 | +270 | +265 | +265 | +245 |
CBD Office | +280 | +260 | +260 | +260 | +250 |
Suburban Office | +300 | +270 | +270 | +270 | +260 |
Full-Service Hotel | +320 | +300 | +300 | +300 | +280 |
Limited-Service Hotel | +400 | +330 | +325 | +325 | +320 |
5-Year Treasury | 2.60% | 2.36% | 2.17% | 2.23% | 2.05% |
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Property Type | Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages | ||||
12/1610 | 3/2/11 | 3/31/11 | 4/12/11 | 4/28/11 | |
Multifamily - Non-Agency | +190 | +180 | +180 | +180 | +180 |
Multifamily – Agency | +200 | +185 | +185 | +185 | +175 |
Regional Mall | +175 | +180 | +180 | +180 | +180 |
Grocery Anchor | +190 | +185 | +185 | +181 | +175 |
Multi-Tenant Industrial | +190 | +190 | +190 | +190 | +180 |
CBD Office | +180 | +180 | +180 | +180 | +180 |
Suburban Office | +190 | +190 | +190 | +190 | +190 |
Full-Service Hotel | +290 | +230 | +230 | +230 | +220 |
Limited-Service Hotel | +330 | +260 | +260 | +240 | +240 |
10-Year Treasury | 3.47% | 3.47% | 3.45% | 3.51% | 3.34% |
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Property Type | Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages | ||||
12/16/10 | 3/2/11 | 3/31/11 | 4/12/11 | 4/28/11 | |
Multifamily – Non-Agency | +250-300 | +225-300 | +225-300 | +225-325 | +225-315 |
Multifamily- Agency | +300 | +250-300 | +250-300 | +250-310 | +250-310 |
Regional Mall | +275-300 | +225-275 | +225-300 | +225-300 | +225-300 |
Grocery Anchored | +275-300 | +225-275 | +225-300 | +225-300 | +225-300 |
Multi-Tenant Industrial | +250-350 | +250-350 | +250-350 | +250-350 | +250-350 |
CBD Office | +225-300 | +225-300 | +225-300 | +225-300 | +225-300 |
Suburban Office | +250-350 | +275-350 | +275-350 | +275-350 | +250-350 |
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% | 0.26% | 0.24% | 0.22% | 0.21% |
3-Month LIBOR | 0.30% | 0.31% | 0.30% | 0.28% | 0.27% |
* A dash (-) indicates a range. | |||||
Source: Cushman & Wakefield Sonnenblick Goldman. | |||||
Year-to-Date Public Equity Capital Markets
DJIA (1): +10.65%
S & P 500 (2):+8.41%
NASDAQ (3): +8.28%
Russell 2000 (4):+10.39%
MSCI U.S. REIT (5):+11.46%
_____
(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 | 4/30/2011 | |
3-Month | 0.12% | 0.04% |
6-Month | 0.18% | 0.09% |
2 Year | 0.59% | 0.60% |
5 Year | 2.01% | 1.97% |
10 Year | 3.29% | 3.29% |
