Tag: commercial mortgage financing

CMBS market steady despite widening spreads

by Randybaconin Commercial Mortgage LendingLeave a Comment on CMBS market steady despite widening spreads

e15f3c9f885adc5ba4dfc6a4_1920

Despite concern from some – including the Federal Reserve – about widening spreads on investment-grade commercial mortgage-backed securities, metrics on CMBS issuances and falling delinquencies indicate a fairly sunny outlook.

In minutes detailing the Federal Reserve’s meeting last month – in which the Fed decided it would maintain interest rates near zero – the central bank noted that spreads on CMBS “widened noticeably in August, reportedly a result of heavy issuance as well as the increased volatility in broader financial markets.”

But analysts have pointed to metrics indicating such conditions as more of a temporary blip than a sign of a more pronounced slowdown in the controversial market.

“There has been a widening of spreads,” Sean Barrie of CMBS analytics firm Trepp told The Real Deal, citing “a lot of deals stacking the opposite ends of the spectrum” in terms of loan-to-value ratio. Barrie noted, however, that so far October has “seen spreads stay even keel,” which he characterized as a “good sign.”

– See more at: http://therealdeal.com/blog/2015/10/14/cmbs-market-steady-despite-widening-spreads/#sthash.wg7NTQOw.dpuf

Find out more about Liberty at our Youtube page.
To discuss commercial mortgage financing needs contact Liberty here

Four Strategies to Address Catastrophe Property and Liability Exposures in Real Estate Sector

by Randybaconin Real EstateLeave a Comment on Four Strategies to Address Catastrophe Property and Liability Exposures in Real Estate Sector

Managing the various, often-volatile property and liability risks that commercial real estate owners and managers face daily requires a vigilant risk management strategy that includes frequently evaluating risks and assessing insurance programs to ensure proper coverages are in place. For instance, when it comes to estimating potential losses from such catastrophes as hurricanes and earthquakes, real estate companies are challenged by the inadequacy of modeling tools. The inherent low-frequency rate of catastrophic event also means standard actuarial techniques are not as effective. On the liability front, making sure policies align with contractual exposures requires a significant amount of due diligence combined with real estate risk management expertise. All of these challenges point to a greater need for real estate companies to partner with risk management experts that have a thorough understanding of the industry’s unique challenges. Additionally, companies need to stay informed on the changing risk environment and latest risk management techniques that can help to mitigate their financial exposures. Following are a few strategies addressing catastrophe property and liability exposures in real estate.

View entire article at National Real estate Investor.

Find out more about Liberty at our Youtube page.

To discuss commercial mortgage financing needs contact Liberty Realty Capital Group.

 

Moody’s, RCA: CRE Prices Top Pre-Recession Levels

by Randybaconin Real EstateLeave a Comment on Moody’s, RCA: CRE Prices Top Pre-Recession Levels
Moody's, RCA: CRE Prices Top Pre-Recession Levels
Moody’s and RCA’s joint Commercial Property Price Indices (CPPI) reveal that the CPPI rose 1.6% in August, thanks in large part to a 1.8% rise in its best-performing segment, central business district. Central business district office has been the top performer for the past three months, rising 6.3%, while suburban office comes in second, rising 3%. The CPPI also topped its November 2007 peak for the first time, adjusting for inflation. It’s now 14.5% above its pre-crisis peak on a nominal basis, and 1.5% above when adjusted for inflation. Additionally, apartment prices exceeded their pre-crisis peak by 33%, with core commercial property prices about 8% higher than their previous peak. [Moody’s]

Read more at: https://www.bisnow.com/national/news/commercial-real-estate/core-commercial-segment-leads-a-rising-cppi-50820?utm_source=CopyShare&utm_medium=Browser

To discuss commercial mortgage financing needs contact Liberty here.

Morgan Stanley: Crowdfunding Loans Showing Up in CMBS

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Morgan Stanley: Crowdfunding Loans Showing Up in CMBS
Morgan Stanley: Crowdfunding Loans Showing Up in CMBS
Crowdfunding has become a hit in real estate circles, providing a new way to raise capital—and a nice way for investors to get a piece of the action with as little as $1k. But who knew it would find its way to CMBS? Morgan Stanley analyst Richard Hill did some digging, discovering three loans (worth $71M total) made to Colony Hills Capital—underpinning two CMBS deals—secured against a portfolio of five multifamily properties. And here’s the kicker: this portfolio received $12M of crowdfunding on EarlyShares.com (an ad that can still be found here), Morgan Stanley says, which could signal a new trend. It’s an “untested ownership structure in CMBS,” Richard says. While it’s something to pay attention to, “the question becomes, how many of these are showing up in CMBS and, more importantly, what happens when these things go bad?” Richard says. “I really don’t know.” [Bloomberg]

Read more at: https://www.bisnow.com/national/news/other/morgan-stanley-real-estate-is-the-final-crowdfunding-frontier-50579?utm_source=CopyShare&utm_medium=Browser

Find out more about Liberty at our Youtube page
Interested in commercial mortgage financing reach out and contact us.

EB-5 Expiration Raises Big Questions for Developers

by Randybaconin Commercial Mortgage LendingLeave a Comment on EB-5 Expiration Raises Big Questions for Developers
EB-5 Expiration Raises Big Questions for Developers
The wildly popular EB-5 program, which grants green cards to foreign investors, is set to expire today, raising big questions for both developers and investors. With the mass influx of foreign capital, EB-5 has been a winner among Chinese investors, with 90% of EB-5 visas granted going to China, pouring in nearly $4B since 2009 along the way. Developers, big and small, are bullish on EB-5, too, with a number using such funds to finance big projects. Related Cos, the developer of New York City’s Hudson Yards, raised a record $600M, using a “cash-for-visa” deal structure. Most recently, Macklowe Properties revealed plans to raise $100M in EB-5 funds for 1 Wall St, a $1.5B condo conversion in Lower Manhattan.

Read more at: https://www.bisnow.com/national/news/economy/with-the-eb-5-immigrant-investor-program-set-to-expire-today-should-it-be-renewed-50539?utm_source=CopyShare&utm_medium=Browser

Find out more about Liberty at our Youtube page

Surge in Commercial Real-Estate Prices Stirs Bubble Worries

by Randybaconin Commercial Mortgage Lending, Real EstateLeave a Comment on Surge in Commercial Real-Estate Prices Stirs Bubble Worries

Investors are pushing commercial real-estate prices to record levels in cities around the world, fueling concerns that the global property market is overheating.

The valuations of office buildings sold in London, Hong Kong, Osaka and Chicago hit record highs in the second quarter of this year, on a price per square foot basis, and reached post-2009 highs in New York, Los Angeles, Berlin and Sydney, according to industry tracker Real Capital Analytics.

Read entire article in Wall Street Journal here.