Strong demand led to tight pricing on newly issued CMBS securities amid the marketing of $10 billion of bonds. Wells Fargo, Morgan Stanley, Bank of America and NCB priced the $1-billion conduit issue on June 14, with the super-senior, long-term AAA-rated bonds pricing at 64 basis points (bp) over … [Read more...] about 6.20.21: CMBS SPREADS CONTINUE TO TIGHTEN ON STRONG INVESTOR DEMAND
6.11.21: HOW AND WHEN IS THE INTEREST RATE SET ON A CMBS CONDUIT LOAN – A REFRESHER
How is the interest rate fixed on a CMBS conduit loan? In the loan Term Sheet, under Interest Rate, the provision indicates the interest rate will be set by adding the loan “spread” (expressed in basis points; i.e., “250 basis points”) to the Swap Rate with the same term as the loan. If the loan is … [Read more...] about 6.11.21: HOW AND WHEN IS THE INTEREST RATE SET ON A CMBS CONDUIT LOAN – A REFRESHER
5.31.21: 33 5-STAR REVIEWS AND COUNTING FOR VALUEXPRESS!
In March 2019, we updated our outdated and not-very-functional website. The new ValueXpress website provides a “learning center” where clients can read more about the types of commercial real estate loans we offer and see which loan product is the right fit for them. The new website allows clients … [Read more...] about 5.31.21: 33 5-STAR REVIEWS AND COUNTING FOR VALUEXPRESS!
5.18.21: BRIDGE LOANS READILY AVAILABLE AS COMPETITION HEATS UP
Competition for bridge loans among lenders is fierce, resulting in lower spreads and better structure for borrowers. The timing of the availability of bridge loans is perfect. Why? Many borrowers are working to re-stabilize property cash flows post-pandemic before locking in larger fixed-rate CMBS … [Read more...] about 5.18.21: BRIDGE LOANS READILY AVAILABLE AS COMPETITION HEATS UP
5.9.21: CLO ISSUANCE SHAPING UP TO SMASH RECORD
More commercial real estate bridge lenders are turning to the Commercial Loan Obligation (CLO) market to package their floating rate loans into securities, in what is shaping up to be a record-setting year. Some $14.6 billion of commercial real estate (CRE) CLO deals have priced through May 13, and … [Read more...] about 5.9.21: CLO ISSUANCE SHAPING UP TO SMASH RECORD
4.30.21: “LOAN SIZING” ACCURATELY DETERMINES LOAN AMOUNTS FOR CMBS CONDUIT LOANS
ValueXpress is in the business of providing loan quotes for CMBS conduit loans. To provide loan quotes requires us to do loan sizing. CMBS conduit loans are based on the amount of property cash flow. To determine the maximum loan amount that can be offered to a borrower, CMBS loan underwriters … [Read more...] about 4.30.21: “LOAN SIZING” ACCURATELY DETERMINES LOAN AMOUNTS FOR CMBS CONDUIT LOANS
4.17.21: BMO CAPITAL STAFFS UP FOR CMBS CONDUIT LENDING PUSH
Last fall, Paul Vanderslice, a Citigroup veteran and former Cantor Commercial Real Estate executive led the formation of a new CMBS securitization platform, BMO Capital Markets. BMO, the investment banking subsidiary of Bank of Montreal, has built out a "first-rate" commercial mortgage-backed … [Read more...] about 4.17.21: BMO CAPITAL STAFFS UP FOR CMBS CONDUIT LENDING PUSH
4.2.21: HOTELS IN TOURIST LOCATIONS FINDING STRONG DEMAND
As previously reported, the COVID-19 pandemic has affected hotels more than other asset classes eligible for CMBS conduit loans. In January 2021, the U.S. hotel industry reported all-time lows in occupancy and revenue per available room (RevPAR), according to yearend 2020 data from STR. In addition, … [Read more...] about 4.2.21: HOTELS IN TOURIST LOCATIONS FINDING STRONG DEMAND
3.23.21: CMBS DEMAND STRONG AS INVESTORS LOOK TO PUT MONEY TO WORK
The COVID-19 pandemic has temporarily suppressed new CMBS loan originations, resulting in fewer CMBS securities available to investors. With CMBS bond buyers flush with new annual capital allocations for CMBS and a shortage of securities, spreads continue to tighten, benefitting CMBS loan borrowers. … [Read more...] about 3.23.21: CMBS DEMAND STRONG AS INVESTORS LOOK TO PUT MONEY TO WORK
3.15.21: RETAIL STORE OPENINGS ARE PROJECTED TO OUTNUMBER CLOSINGS IN 2021
In the debate about the long-term viability of brick-and-mortar retail, it appears that those who wrote off physical stores based on 2020’s pandemic-driven wave of bankruptcies and store closings may have spoken too soon. Citing data from Coresight Research, CNBC reported that planned store openings … [Read more...] about 3.15.21: RETAIL STORE OPENINGS ARE PROJECTED TO OUTNUMBER CLOSINGS IN 2021