The highly leveraged mREITs mostly deal in agency securities, which are guaranteed by government-ish entities like Fannie Mae and Freddie Mac. The lower credit risk of the agency securities allow for this debt-stacking. Meanwhile, on the lower-leveraged end, we see mREITs that are focused on commercial mortgages and non-agency-guaranteed residential mortgages. Read the full article [...]
Last week’s disturbingly low second quarter GDP estimate and even more disturbing downward revision to first quarter GDP necessitate an examination of the impact that $2.7 trillion in federal budget cuts will have on commercial real estate demand. Read the full story at Forbes.com >
Federal spending cuts seem inevitable. While no one knows the exact figure, the House of Representatives did vote to cut $6.2 trillion from the federal budget over the next 10 years. Though it was defeated, it provides the high end for how much the federal Budget could be reduced. More recent discussions seem to peg [...]
Commercial real estate loan rates just updated today. Notable drops in longer term mortgages for the right properties. Check out the full table and drop us a line if you have any questions about your current investments. View current rates…
Barely a few minutes after reading an article in the Wall Street Journal about banks finally opening the ”spigot for commercial real-estate,”the folks over at Trepp issued their monthly report on the delinquency rate for commercial mortgage backed securities(CMBS); let’s just say it isn’t good. After two months of very minimal rate increases, the number jumped [...]
Improved Asset Values, Capital Conditions Generally Limited to Top Markets PRNewswire-USNewswire — Absent strong improvement in U.S. job markets and demand for business space, the nation’s commercial real estate sector will likely continue its slow, “bifurcated” recovery over the coming year — with top urban markets outpacing recovery in secondary, non-”gateway” markets, according to The [...]
For the first time in more than a year, the amount of commercial real estate loans held by banks grew at the end of April, showing a one-week reversal of a long, consistent decline. In the week ending April 20, according to data from the Federal Reserve, banks showed a seasonally adjusted increase of $979 [...]
U.S. commercial property prices may fall within a year as building owners attempt to refinance $1 trillion in mortgages, according to Joseph Azrack, head of real estate for Apollo Global Management LLC. The market is “due for a correction” in the next 12 months as the first stage of the financial crisis’s aftermath, including loan [...]
New commercial real estate loan rates uploaded today. Small portfolio rates have come down a bit, and deal flow is starting to build. Check out the full table and drop us a line if you have any questions about your current investments. View current rates…