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

Many local apartment owners are following an industry trend by switching to algorithm-based leasing software. It calculates the price of a unit based on a number of factors -- and the rate can unexpectedly peak and valley. "Prices change daily," said Dorna Davani, leasing consultant with … [Read more...] about 11.9.15: Future Apartment Rents to be Determined by Computer Software?

Four investors in Stuyvesant Town Peter Cooper Village located in New York City are suing CWCapital and Wells Fargo, looking to prevent CWC from reaping an alleged “windfall” of more than $560 million from the $5.3-billion sale of the property to the Blackstone Group and Ivanhoe Cambridge. The … [Read more...] about 11.4.15: Investors Sue CMBS Servicer over Fees for Apartment Sale

Most CMBS conduit loans have a protection for lenders in the event property cash flow decreases significantly during the loan term. The protection is in the form of a cash management account that is in the name of the lender and the borrower. When the property is performing in accordance with the … [Read more...] about 10.30.15: Don’t Let This Trigger Hurt You

Regulation AB, a new regulation adopted by the Securities and Exchange Commission (SEC) and effective November 24, may have an adverse effect on small CMBS lenders. Regulation AB requires a senior CMBS executive employed by the lead lender in the securitization to assume personal liability for … [Read more...] about 10.26.15: New Regulations May Affect Small CMBS Lenders

In CMBS conduit lending, all lenders require sponsors and their borrowing entities to complete a disclosure form. Typical questions include whether the sponsor has ever defaulted on a commercial loan, been involved in litigation, filed for bankruptcy, or been convicted of a crime. Some sponsors … [Read more...] about 10.18.15: Be Truthful in Your Disclosures Please

Charley Lobetti, a 20-year veteran in commercial real estate lending, joined ValueXpress effective October 1. Charley is primarily responsible for commercial loan originations focused on CMBS conduit loans in what is known as the East-South-Central United States, including the states surrounding … [Read more...] about 10.16.15: Charley Lobetti Joins ValueXpress

About $5.62 billion of loans in commercial mortgage-backed securities (CMBS) could be adversely affected by recent record flooding in South Carolina. President Obama declared a state of emergency covering the entire state and ordered federal aid to help the recovery, according Morningstar Credit … [Read more...] about 10.12.15: Will Flooding Affect CMBS Conduit Loans in South Carolina?