Lender competition for CMBS conduit loans for hotels, particularly limited-service hotels owned by AAHOA members, is contributing to rapidly declining interest rates for borrowers. In addition, small balance borrowers ($3 million-$10 million) are enjoying low interest rates that were previously … [Read more...] about AAHOA Alert! 4.30.14: CMBS Conduit Loan Rates for Hotels Fall Below 5%
Archives for April 2014
4.30.14: Swap Rates Decline on Poor GDP Report
Swap rates, an important financial index that is used to set interest rates on CMBS conduit loans, fell this week after the government reported annualized Gross Domestic Product (GDP) growth of a mere 0.01% in the first quarter of 2014, according to the “advance” estimate released by the Bureau of … [Read more...] about 4.30.14: Swap Rates Decline on Poor GDP Report
AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
ValueXpress can obtain CMBS conduit loans for AAHOA members who own limited and full-service hotels in small markets. “Traditionally, CMBS conduit lenders do not like small markets and will not make hotel loans there,” notes Michael D. Sneden, Executive Vice President at ValueXpress. “But through … [Read more...] about AAHOA Alert! 4.28.14: CMBS Conduit Loans Available in Small Markets
AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
Since 2011 when the CMBS conduit loan market resumed, ValueXpress has made approximately $200 million in CMBS conduit loans to AAHOA members who refinanced approximately $140 million of debt. This means that $60 million of equity was returned to borrowers, most of which was reinvested in additional … [Read more...] about AAHOA Alert! 4.24.14: AAHOA Borrowers Use Cash-Out Proceeds from CMBS Conduit Loans to Grow
4.23.14: Who Holds the Most Commercial Loans?
The winner is commercial banks, which held $1.57 billion in commercial real estate debt at year-end 2013, according to data from the Federal Reserve Board. The amount of commercial real estate debt held by banks represents 48.9% of the $3.20 billion of total outstanding loans. CMBS is a distant … [Read more...] about 4.23.14: Who Holds the Most Commercial Loans?
4.18.14: CMBS Conduit Loan Rates Fall
The combination of lower CMBS yields, competition and a declining swap rate is contributing to rapidly declining interest rates for CMBS conduit loan borrowers. As of Thursday, April 17, the 10-year Swap rate used to set CMBS loan interest rates had fallen to 2.75% from an April high of 2.93% on … [Read more...] about 4.18.14: CMBS Conduit Loan Rates Fall
4.14.14: CCTG Graduates Gaining Traction in CMBS Originations
Graduates of the Commercial Capital Training Group (CCTG), a training program for individuals who want to enter or expand their reach in the commercial real estate finance business, are finding that CMBS conduit lending can be a lucrative product for their business. “My associate Kevin Monahan began … [Read more...] about 4.14.14: CCTG Graduates Gaining Traction in CMBS Originations
4.9.14: Fixed-Rate SBA 7(a) Loans Becoming More Prevalent
The attractive premium income achieved by selling the guaranteed portion of variable rate SBA 7(a) loans has kept fixed-rate 7(a) loans from becoming a significant portion of overall 7(a) loan origination. SBA lenders have been known to suggest to borrowers that fixed-rate 7(a) loans “don’t exist.” … [Read more...] about 4.9.14: Fixed-Rate SBA 7(a) Loans Becoming More Prevalent
4.4.14: CMBS Origination Volume Slips in First Quarter
CMBS issuance in the first quarter fell 11% from a year earlier, according to Commercial Mortgage Alert. An estimated $20.4 billion of CMBS were issued in the first quarter of 2014, a decline from $22.9 billion a year ago. On an annualized basis, the pace of issuance is about $80 billion, less than … [Read more...] about 4.4.14: CMBS Origination Volume Slips in First Quarter
4.1.14: Trepp Reports Further Decline in Delinquency
The CMBS delinquency rate continued its impressive decline in March, marking the tenth consecutive month the rate has fallen, according to Trepp. The rate dropped 24 basis points (bp) over the course of the month, bringing the delinquency rate for U.S. commercial real estate loans in CMBS to 6.54%. … [Read more...] about 4.1.14: Trepp Reports Further Decline in Delinquency
