CMBS spreads for the benchmark AAA-rated super senior CMBS bonds remained range bound in the vicinity of 130 basis points (bp) over swaps. A recent deal priced below that level and a new deal in the market provided price guidance at the 130 bp level. On Friday, April 22, Morgan Stanley and Bank of … [Read more...] about 4.29.16: CMBS Prices Stable (and That’s a Good Thing)
Archives for April 2016
4.26.16: Commercial and Multifamily Originations Flatline in the First Quarter
The first quarter of 2016 was something of a dud for commercial and multifamily originations, according to new data from the Mortgage Bankers Association (MBA). The MBA “Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations” found originations for this sector fell 38% from the … [Read more...] about 4.26.16: Commercial and Multifamily Originations Flatline in the First Quarter
4.20.16: Retail Property Cap Rates Rise in the First Quarter
The average cap rate for retail properties nationwide moved up 11 basis points (bp) between the fourth quarter of 2015 and the first quarter 2016, to 6.59%, according to a recent report from commercial real estate services firm CBRE. Still, the figure represented a 13 bp year-over-year decrease. … [Read more...] about 4.20.16: Retail Property Cap Rates Rise in the First Quarter
4.15.16: Watching Out for Risk Retention
With CMBS prices stabilizing at levels that provide a reasonable interest rate for borrowers, the next cloud on the horizon is risk retention. Beginning December 24, 2016, under new Dodd-Frank federal regulations, CMBS issuers will be required to retain a 5% slice (“risk retention”) of every new … [Read more...] about 4.15.16: Watching Out for Risk Retention
4.11.16: Prime Finance Circles First CMBS B-Piece with an Eye on Risk Retention
Prime Finance has entered the CMBS b-piece market, circling its first two subordinate bond investments from CMBS deals led by Wells Fargo and Citigroup. The deals should be announced in the next few weeks. Prime is a private commercial real estate finance company that originates primarily bridge … [Read more...] about 4.11.16: Prime Finance Circles First CMBS B-Piece with an Eye on Risk Retention
4.5.16: SBA Close to Restarting 504 Loan Refinance Program
After years of advocating on Capitol Hill by commercial real estate industry leaders, the SBA 504 Loan Refinancing Program was permanently reinstated on December 18, 2015, more than three years after it expired in 2012. Also known as the Commercial Real Estate and Economic Development (CREED) Act, … [Read more...] about 4.5.16: SBA Close to Restarting 504 Loan Refinance Program
4.1.16: CMBS Conduit Loan Spreads Rally (Again)
CMBS spreads tightened further this week as two CMBS issues priced at levels tighter than a CMBS offering led by Wells Fargo that priced on March 18. The benchmark AAA-rated super senior CMBS bonds from the most recent $818-million offering from Deutsche Bank and JPMorgan priced on Thursday at 129 … [Read more...] about 4.1.16: CMBS Conduit Loan Spreads Rally (Again)
