Self-Storage facilities has turned out to be the best-performing asset class in CMBS in terms of delinquency. Self-storage CMBS-backed loans historically have been good performers for several reasons. For one, self-storage properties weren’t prone to being overvalued during the peak of CMBS lending … [Read more...] about 12.28.15: Self-Storage Properties Best-Performing Asset Class in CMBS
Archives for 2015
Michael D. Sneden, Executive Vice President of ValueXpress, will be representing the firm at the Mortgage Bankers Association Commercial Real Estate Finance (CREF)/Multifamily Housing Convention & Expo at the Hyatt Regency in Orlando, Florida January 31-Febraury 3, 2016. The convention is … [Read more...] about 12.25.15: Meet Me at the MBA in Orlando, FL
As the holiday shopping season comes to a close, it is clear that shoppers chose the Internet over a trip to the mall. Sales at brick & mortar stores fell 6.7% over the most recent weekend, while traffic declined 10.4%, according to RetailNext, which collects data through analytics software it … [Read more...] about 12.21.15: Sales Continue to Fall at Brick & Mortar Retailers
The Federal Reserve raised its key interest rate on Wednesday, December 16 from a range of 0.00%-0.25% to a range of 0.25%-0.50%. The move was widely expected. It is a sign of how much the economy has healed since the Great Recession. The central bank believes the U.S. economy is strong now and no … [Read more...] about 12.16.15: Treasury and Swaps Stable After Federal Reserve Rate Increase
CMBS conduit loan spreads have increased steadily this fall and many conduit borrowers who have not completed transactions recently are surprised when they receive a Term Sheet reflecting current market spreads. A natural response is “Wow, why is this loan spread so high compared with my last deal?” … [Read more...] about 12.11.15: Borrowers Want to Know: Why Are CMBS Conduit Loan Spreads Going Up!
About six weeks ago, the 10-year Treasury rate surpassed the 10-year Swap rate. For at least the past ten years, the Swap rate had always been higher than the equivalent Treasury rate. The gap between the two indexes was typically 10 basis points (bp). Right now, the reverse is true, the 10-year … [Read more...] about 12.3.15: CMBS Conduit Lenders Slip New Provision in Term Sheets
The significant amount of CMBS conduit loan maturities in 2016-2017 will provide an unprecedented opportunity for CMBS conduit loan mortgage brokers to increase their origination volume. “Recently, Jim Brett, our CMBS bond analyst and head of CMBS conduit loan underwriting at ValueXpress, performed … [Read more...] about 11.27.15: Wave of CMBS Maturities Is Here!
Wells Fargo recently reported that, in its opinion, CMBS conduit loan underwriting “looked decidedly weaker in 2015” with only Debt Service Coverage Ratios (DSCR) improving. DSCR improvement was primarily a function of low interest rates that were prevalent for the majority of 2015. However, other … [Read more...] about 11.24.15: Wells Fargo – “Underwriting Metrics Slip in 2015”
The rooftop is now the hottest place to be. These versatile and attractive spaces are one of the newest, most coveted amenities hitting the multifamily market. The emerging spots provide a trendy atmosphere where residents will want to spend most of their time enjoying skyline views -- leading to … [Read more...] about 11.18.15: Rooftop Amenities Are the Rage
Typically, Swap Rates are more than the equivalent Treasury Rate, but recently the relationship has reversed: The Swap Rate is currently lower than the equivalent Treasury Rate. This relationship is important to CMBS conduit loan borrowers because the Swap Rate is the index used to set the … [Read more...] about 11.13.15: Swap Rate Falls Below Treasury Rate – CMBS Borrowers Benefit