Monday’s Numbers: October 18, 2010

The Commercial Mortgage Alert Trepp weekly survey of 15 active portfolio lenders widened between October 1st and October 8th. During the period, 10-year Treasury bond yields widened by 17 basis points, with average all-in cost equal to equal to 4.80 percent.

October 18, 2010

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Flash Report: According to Trepp, CMBS delinquencies have reached 9.00 percent as compared to 4.36 percent last year.

The Commercial Mortgage Alert Trepp weekly survey (below) of 15 active portfolio lenders widened between October 1^st and October 8th. During the period, 10-year Treasury bond yields widened by 17 basis points, with average all-in cost equal to equal to 4.80 percent.

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	9/10	9/17	9/24	10/1	10/8
Office	342	236	248	246	260	240
Retail	326	221	231	231	240	224
Multifamily	318	208	207	212	215	208
Industrial	333	220	230	230	236	221

Average Asking Spread	330	221	229	229	237	224

10-Year Treasury	3.83%	2.74%	2.60%	2.51%	2.39%	2.56%
Source: Commercial Mortgage Alert; Trepp.

Spreads in the October 13Cushman & Wakefield Sonnenblick-Goldman fixed and floating mortgage rate survey (below) remained basically unchanged from the prior survey period as lenders appear content to write loans in the high 4.00 to low 5.00 percent range, a trading range most likely to be vogue for the balance of 2010.

Property Type	Mid-Point of Fixed Rate Commercial Mortgage Spreads For 5 Year Commercial Real Estate Mortgages
	1/6/10	8/12/10	8/31/10	9/16/10	10/13/10
Multifamily - Non-Agency	+360	+300	+300	+280	+280
Multifamily – Agency	+220	+240	+240	+240	+240
Regional Mall	+450	+300	+290	+290	+280
Strip/Power Center	+460	+325	+300	+300	+285
Multi-Tenant Industrial	+435	+300	+280	+280	+275
CBD Office	+435	+310	+270	+270	+270
Suburban Office	+465	+325	300	+300	+300
Full-Service Hotel	+500	+400	+400	+400	+375
Limited-Service Hotel	+500	+450	+450	+450	+450
5-Year Treasury	2.60%	1.58%	1.41%	1.51%	1.17%
Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type	Mid-Point of Fixed Rate Commercial Mortgage Spreads For 10 Year Commercial Real Estate Mortgages
	1/6/10	8/12/10	8/31/10	9/16/10	10/13/10
Multifamily - Non-Agency	+300	+180	+180	+180	+180
Multifamily – Agency	+220	+190	+190	+190	+190
Regional Mall	+350	+200	+200	+200	+200
Strip/Power Center	+350	+220	+210	+200	+200
Multi-Tenant Industrial	+420	+230	+205	+200	+190
CBD Office	+330	+210	+225	+190	+190
Suburban Office	+355	+225	+225	+220	+220
Full-Service Hotel	+550	+350	+350	+350	+340
Limited-Service Hotel	+575	380	+380	+380	+380
10-Year Treasury	3.85%	2.71%	2.61%	2.76%	2.45%
Source: Cushman & Wakefield Sonnenblick Goldman.

Property Type	Mid-Point of Floating-Rate Commercial Mortgage Spreads For 3 - 5 Commercial Real Estate Year Mortgages
	1/6/10	8/12/10	8/31/10	9/16/10	10/13/10
Multifamily – Non-Agency	+300 – 400	+275-300	+275-300	+275-325	+250-300
Multifamily- Agency	NA	NA	NA	NA	NA
Regional Mall	+475 – 600	+300-350	+275-350	+275-350	+275-350
Strip/Power Center	+450 – 650	+300-350	+275-350	+275-350	+275-350
Multi-Tenant Industrial	+400 – 500	+275-350	+250-350	+250-350	+250-350
CBD Office	+425	+275-350	+225-300	+225-300	+225-300
Suburban Office	+425	+300-350	+250-350	+250-350	+250-350
Full-Service Hotel	+600	+400-550	+375-550	+375-500	+375-500
Limited-Service Hotel	+750	+450-600	+450-600	+450-550	+450-600
1-Month LIBOR	0.23%	0.40%	0.26%	0.26%	0.26%
3-Month LIBOR	0.25%	0.62%	0.31%	0.31%	0.29%
* A dash (-) indicates a range.
Source: Cushman & Wakefield Sonnenblick Goldman.

Year-to-Date Public Equity Capital Markets

DJIA ⁽¹⁾: +6.09%
S & P 500⁽²⁾:+5.48%
NASDAQ⁽³⁾: +8.80%
Russell 2000 ⁽⁴⁾: +10.90%
MSCI U.S. REIT ⁽⁵⁾:+21.22%

^{(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
	1/6/10	4/9/10	9/30/10	10/16/10
3-Month	.016%	0.15%	0.15%	0.13%
6-Month	0.25%	0.23%	0.19%	0.17%
2 Year	0.99%	1.06%	0.41%	0.36%
5 Year	2.60%	2.62%	1.26%	1.19%
10 Year	3.85%	3.88%	2.51%	2.56%
Source: Bloomberg LLP.

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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.