In December 2015, Congress approved a change to the SBA 504 program to allow refinanced properties to be eligible for the program. Prior to the change, the program was available for purchase transactions only. The summary of the rules at time of approval in December were as follows: The commercial … [Read more...] about 12.3.16: SBA Improves Cash-Out 504 Refinance Program

10-year Treasury and Swap rates have moved up significantly since U.S. presidential election results on November 8. The following chart shows the move in the Treasury since the election. November 2016 Yield (%) 23 2.37 22 2.32 21 2.33 18 2.34 17 2.29 16 2.22 15 2.23 14 2.23 … [Read more...] about 11.26.16: Borrowers Adjusting to Higher Rates Post-Election

After six consecutive years of issuance growth, the CMBS market expansion came to an abrupt halt in 2016, according to Kroll Bond Rating Agency (KBRA). Private label CMBS is expected to end 2016 within a range of about $65-$70 billion, approximately 30% lower than 2015’s $95.8 billion. Despite what … [Read more...] about 11.23.16: KBRA Releases 2017 CMBS Outlook

The Mortgage Bankers Association's Commercial Real Estate Finance/Multifamily Housing Convention & Expo returns to San Diego, California on February 19-22, 2017. This must-attend industry event draws more than 3,000 commercial and multifamily real estate finance professionals to San Diego for … [Read more...] about 11.16.16: MBA CREF Conference Returns to San Diego in February 2017

Last week, the Wells, Morgan Stanley and Bank of America team did it again. The group issued its second CMBS offering that followed the compliant risk-retention structure at spreads that blew away the market. The AAA-rated investment grade portion of the deal attracted particularly strong demand … [Read more...] about 11.11.16: Recent CMBS Deals Show Signs of Price Tiering

Yeager Properties had its grand opening of the next generation of its office suites concept building on October 20. The property, Yeager Office Suites of Plano, is located at 8105 Rasor Boulevard, Plano, Texas. ValueXpress arranged the financing for the existing Yeager office suite portfolio and … [Read more...] about 11.8.16: Yeager Properties Opens Next Generation Office Suite Project

Macy’s and Brookfield Asset Management have formed a strategic alliance to extract value in Macy’s real estate assets. Under the alliance, Brookfield will have an exclusive right for up to 24 months to create a “pre-development plan” for each of approximately 50 Macy’s real estate assets, with … [Read more...] about 11.2.16: Brookfield and Macy’s Form Partnership to Extract Real Estate Value

The credit box for CMBS conduit loans has gradually tightened during 2016, resulting in complaints from borrowers of last-minute reductions in loan proceeds before closing, mainly on cash-out refinances. Loan adjustments can often be traced to insufficient due diligence completed by the CMBS conduit … [Read more...] about 10.28.16: Make Sure Your CMBS Term Sheet Is “Credit Approved” Before Signing

A consortium led by developers Simon Property Group (SPG) and General Growth Properties (GGP) won an auction for the assets of Aeropostale in September. The group plans to keep open 299 of the bankrupt retailer’s stores. Aeropostale was facing liquidation if the SPG/GGP team did not step in with a … [Read more...] about 10.24.16: Simon and GGP Rescue Aeropostale; Is This the Future of Retailing?