CMBS conduit loan originators are concerned about lower oil prices negatively affecting room demand for hotel properties in markets where demand is highly dependent on robust oil exploration and production activities. While the impact of declining oil prices should affect markets differently, right … [Read more...] about 12.26.14: Caution Flag Out for Hotels in Oil-Related Markets
Archives for 2014
One of our CMBS conduit lending partners provides us with a regular forecast of its views on the economy and its expected impact on CMBS conduit lending. We have completed close to $500 million in transactions since the restart of CMBS conduit lending in 2010 with this partner, so we like to share … [Read more...] about 12.21.14: Economic Outlook and Product Offering Update
The significant amount of CMBS conduit loan maturities in 2015-2017 will provide an unprecedented opportunity for CMBS conduit loan mortgage brokers to increase their origination volume in the upcoming years (see our 12.12.14 post), but not without some challenges. “I went back to Jim Brett, our … [Read more...] about 12.17.14: More First Mortgage/Mezzanine Combos Expected in 2015-2017
The significant amount of CMBS conduit loan maturities in 2015-2017 will provide an unprecedented opportunity for CMBS conduit loan mortgage brokers to increase their origination volume in the upcoming years. “Recently, Jim Brett, our CMBS bond analyst and head of CMBS conduit loan underwriting at … [Read more...] about 12.12.14: Mountain of CMBS Conduit Loan Maturities Presents Origination Opportunity
I have fond memories of buying obscure electronic devices and parts at the Radio Shack in Brunswick Square Mall in East Brunswick, N.J., where I grew up. Do you remember when headphones made your head doubly large and the plug-in was the size of your index finger? Well, back in the day, only Radio … [Read more...] about 12.8.14: Is Radio Shack “Toast”?
The CMBS delinquency rate for U.S. commercial real estate loans in CMBS declined significantly in November, to 5.80%, reversing an 11-basis-point (bp) increase reported in October, according to Trepp. The November delinquency rate was the largest drop in ten months and the reading was the lowest … [Read more...] about 12.3.14: CMBS Delinquency Posts Significant Decline in November
A flood of CMBS deals slated to price before year-end may result in lower CMBS bond prices if investors do not have the appetite to buy all of the supply. Many CMBS buyers, including insurance companies, are provided annual allocations for fixed-income investments such as CMBS, and once those … [Read more...] about 11.28.14: Flood of CMBS Deals May Put Downward Pressure on Pricing
On November 23, UBS, Deutsche Bank, Jeffries, Cantor Fitzgerald, KeyBank and Pillar priced the benchmark class of a $1.275-billion multi-borrower CMBS conduit offering at significantly wider spreads than the previous offering on November 18 from Wells Fargo, RBS, Rialto Capital and other loan … [Read more...] about 11.25.14: Spreads Widen on Recent CMBS Offering
Moody’s recently reported further deterioration of CMBS conduit loan underwriting using its internal loan-to-value (LTV) metrics. The experts at Moody’s Investors Service track the principal amount of CMBS loans compared with the property’s value based on applying an appropriate capitalization rate … [Read more...] about 11.19.14: Moody’s Warns on CMBS Loan Underwriting
“Our mission at ValueXpress, particularly for first-time CMBS conduit loan borrowers, is to make a complex loan process as painless as possible,” explained Michael D. Sneden, Executive Vice President at ValueXpress. “This enables borrowers to keep up with the fast-paced underwriting and closing … [Read more...] about 11.14.14: On the Road Again … This Time to Lubbock, TX!