Commercial Loan News

1.25.2010 Commercial Loan Rates

noreply@blogger.com (Investor News Team) — Mon, 25 Jan 2010 18:22:00 +0000

New rates posted today on the commercial loan rates page. Significant changes include lowering of various loan product LTV along with some uptick in market activity the past few weeks. Things are still tight but opportunities do exist for investors. We'll keep you posted.

Video: President Obama On Commercial Banking

noreply@blogger.com (Investor News Team) — Thu, 21 Jan 2010 18:30:00 +0000

Higher Rates Expected for Commercial Real Estate

noreply@blogger.com (Investor News Team) — Wed, 20 Jan 2010 18:22:00 +0000

Federal Deposit Insurance Corp. Chairman Sheila Bair said in a speech that regulators expect banks to report higher delinquencies and charge-off rates for commercial real estate properties in the first three months of 2010. Speaking to the Commercial Mortgage Securities Association, Bair said even income-producing properties have seen a decline in credit performance.

Read the full story on WSJ »

12.01.09 Commercial Loan Rates

noreply@blogger.com (Investor News Team) — Tue, 01 Dec 2009 15:45:00 +0000

Commercial Mortgage Defaults Reach 3.4%

noreply@blogger.com (Investor News Team) — Mon, 30 Nov 2009 15:30:00 +0000

The commercial mortgage default rate on loans held by U.S. banks more than doubled to 3.4 percent in the third quarter as vacancies rose and rents declined, Real Estate Econometrics LLC said.

Defaults climbed from 1.37 percent a year earlier and from 2.88 percent in the second quarter, the New York-based property research firm said today in a report. Default rates in the first three quarters of 2009 have been the highest since 1993, the firm said.

Read the full story here »

Video: Commercial Real Estate Analysis

noreply@blogger.com (Investor News Team) — Thu, 26 Nov 2009 15:33:00 +0000

Commercial Property at 2002 Prices

noreply@blogger.com (Investor News Team) — Wed, 25 Nov 2009 15:41:00 +0000

An index compiled by Moody's Investors Service found that prices of commercial real estate have, on average, returned to levels seen seven years ago. The Moody's/REAL Commercial Property Price Index declined 3.9% in September to 109.61 from 114.06 in August. Based on the index, prices for commercial real estate were 37% lower than in September 2008 and 42.9% below the peak measured in October 2007. The index is based on repeat sales of the same properties across the U.S. at different times.

Read full story at WSJ Online »

Video: The Next Hole in Economy

noreply@blogger.com (Investor News Team) — Fri, 20 Nov 2009 15:38:00 +0000

10.20.09 Commercial Loan Rates

noreply@blogger.com (Investor News Team) — Thu, 15 Oct 2009 01:47:00 +0000

New rates posted today on the commercial loan rates page. Minor changes along with some uptick in market activity the past few weeks. Things are still tight but opportunities do exist for investors. We'll keep you posted.

Commercial Real Estate Continues to Worry the Fed

noreply@blogger.com (Investor News Team) — Wed, 14 Oct 2009 20:50:00 +0000

The underlying theme of the Fed’s view of the real-estate market comes as little surprise. Even as the housing market shows signs of life, commercial property continues to be a drag on banks and the economy. We recently reported on the Fed’s commercial real estate concerns in a story about a Fed presentation saying that U.S. banks are slow to take losses on their commercial property loans....

Read full story at WSJ »

Capmark Example of Commercial Real Estate Troubles

noreply@blogger.com (Investor News Team) — Wed, 14 Oct 2009 01:52:00 +0000

Capmark Financial Group Inc will likely become one of the largest commercial real estate lenders to fail, highlighting the challenges facing the deteriorating market for retail and office buildings.

A source told Reuters on Monday that Capmark would file for bankruptcy as soon as next week, with about $10 billion in assets.

Restructuring specialists said Capmark's troubles are a symptom of of the wider collapse in commercial real estate values and a signal of tougher times ahead for lenders and developers.

Read full story at Reuters »

Economic Recovery Shadowed by Commercial Real Estate Loans

noreply@blogger.com (Investor News Team) — Thu, 08 Oct 2009 01:57:00 +0000

Two officials from the U.S. Federal Reserve issued strong signals this week that the central bank is very concerned over the banking industry's exposure to commercial real estate loans and considers it to be a major stumbling block to the road to economic recovery.

In a speech Monday assessing the state of the U.S. economic recovery, Federal Reserve Bank of New York President and CEO William Dudley said he expects that "more pain lies ahead" for the commercial real estate sector and for banks with heavy exposure to CRE loans.

"The commercial real estate sector is under particular pressure because the fundamentals of the sector have deteriorated sharply and because the sector is highly dependent upon bank lending," Dudley said in the speech at the Fordham Corporate Law Center in New York.

Unemployment remains much too high and "it seems the recovery will be less robust than desired," with "significant excess slack" in the economy, Dudley said. Also, in something of a departure from recent Fed pronouncements, Dudley said the economy faces "meaningful downside risks to inflation over the next year or two."

Additionally, on Wednesday, The Wall Street Journal reported that a Fed official told banking industry regulators in a Sept. 29 presentation that "banks will be slow to recognize the severity of the loss" from commercial real estate loans, "just as they were in residential."

Read full article at CoStar »

Commercial Loan Rates for 09.09.09

noreply@blogger.com (Investor News Team) — Wed, 09 Sep 2009 21:33:00 +0000

VIDEO: Fox Business on Commercial Mortgage Sector

noreply@blogger.com (Investor News Team) — Tue, 01 Sep 2009 21:28:00 +0000

$2.3 Billion in Commercial Mortgage Requests to Feds

noreply@blogger.com (Investor News Team) — Thu, 20 Aug 2009 21:34:00 +0000

SOURCE: Bloomberg.com

Investors asked the Federal Reserve for $2.3 billion of loans against commercial-mortgage-backed securities created before this year, an expansion from $668.9 million in its financing program’s first round a month earlier.

The central bank got no requests for newly issued bonds backed by loans on skyscrapers, shopping malls, apartments or hotels, the New York Fed said today on its Web site. That part of the Term Asset-Backed Securities Loan Facility, or TALF, hasn’t been used since its start three months ago.

Read full story »

Commercial Loan Rates for 09.01.09

noreply@blogger.com (Investor News Team) — Tue, 14 Jul 2009 22:52:00 +0000

New rates posted today with some significant changes and signs of movement in the capital markets. Multifamily continues to show the most activity on a relative scale and qualified apartment loans are still receiving some funding. We'll keep you posted.

Recovery Signs for Commercial Real Estate?

noreply@blogger.com (Investor News Team) — Mon, 29 Jun 2009 22:46:00 +0000

SOURCE: Fool.com

Some commercial real estate business is stirring again. The deals seem to be starting small, but never-the-less they are happening.

"Until a couple of transactions settled, you didn’t have a floor in the market," says Jeff Pacy, a broker with Preston Partners in Lutherville, MD.

According to Pacy and other commercial real estate insiders outside of Baltimore, they are seeing a "sudden burst of business." For commercial property under $10M, the pricing now seems to be right. Institutional buyers are also treading softly back into commercial property from the sidelines.

Read full story »

Hard Times for Southern States in Commercial Real Estate

noreply@blogger.com (Investor News Team) — Thu, 25 Jun 2009 22:42:00 +0000

SOURCE: DallasNews.com

Commercial real estate values are continuing their downward spiral, dropping 8.6 percent in April, according to a report released Wednesday by Moody's Investors Services and Real Estate Analytics.

That's the largest one-month nationwide decline on record.

And the Southern region of the U.S., which includes Texas, is seeing the worst declines. Prices for investment properties in the Southern sector of the country are off more than 20 percent in the last year, Moody's researchers said.

U.S. commercial real estate values are down 29.5 percent from their peak in late 2007.

The biggest declines have come in the office sector, where prices are down about 29 percent nationwide from a year ago. And shopping center values have fallen 18.5 percent.

Another recent commercial property report predicts that the Dallas area will have the largest decline in office prices in the country during the coming year. That forecast last week by PricewaterhouseCoopers predicts that the commercial real estate market won't begin to recover until 2011.

Read full story »

Opportunities Growing for Some Buyers

noreply@blogger.com (Investor News Team) — Wed, 24 Jun 2009 22:50:00 +0000

SOURCE: CoStar

Although the future of commercial real estate remains murky, current operating conditions are crystal clear: There is very limited capital, extremely tighter underwriting, shrinking net operating incomes, shrinking space demand and declining property values. For companies today, that means leaner and more efficient operations and more focus on tenant retention rather than tenant attraction.

The bigger question may be how long will these current conditions remain in effect. And while they are far different than what conditions were just three years ago, the smart money is starting to act as if it expects the current operating environment will be in effect for some time and is starting to look for opportunities that match the times.

Read full story »

Commercial Loan Rates for 05.12.09

noreply@blogger.com (Investor News Team) — Wed, 13 May 2009 18:13:00 +0000

New rates posted today with minor fluctuations, with banks and conduit lenders showing little signs of loosening their extra conservative capital market strategies. Apartment loans are still receiving some funding. We'll keep you posted.

Commercial Real Estate Loans Impact Regional Banks

noreply@blogger.com (Investor News Team) — Wed, 13 May 2009 17:56:00 +0000

Source: LA Times

According to this recent article from LA Times, delinquencies are snowballing on construction loans and mortgages for office buildings, malls and apartments. The trend is particularly worrisome in Southern California.

The slumping market for commercial real estate -- viewed by many as the next big shoe to drop on the economy -- now threatens to drag down regional banks as they struggle to collect on loans made against shopping centers and office buildings.

Seriously overdue loans against commercial developments have shot up dramatically in recent months, as delinquencies snowball on construction loans and mortgages for office buildings, malls and apartments.

Read the full story »

Banks Still Face Challenges in 2009 and Beyond

noreply@blogger.com (Investor News Team) — Tue, 12 May 2009 18:20:00 +0000

Source: The Motley Fool

With the banking stress tests now completed, investors are finding it more sensible than it's been in months to invest in banks. Clarity, they'll tell you, is returning to the industry. We can now make informed estimates as opposed to the blind guesses we were stuck with in months past. Not only do we have a roadmap of a bank's future, but heck, the stress tests prove that no big bank will completely bellyflop and go under, right? Kinda. Sorta. Not really.

Read the full story »

San Francisco Commercial Real Estate Market Softens

noreply@blogger.com (Investor News Team) — Sat, 09 May 2009 18:28:00 +0000

Source: SF Gate

Another wave of real estate defaults is rapidly gathering strength - this time in the office sector.

Owners of several small commercial buildings in San Francisco already are behind on payments, and local industry observers are laying odds on which large property could be the first to be seized by a lender.

The mix of industries in San Francisco might make it better fortified than places like Manhattan, where the commercial sector is sharing the fate of the ravaged financial services industry, said Ken Rosen, chairman of the Fisher Center for Real Estate and Urban Economics at UC Berkeley.

"But we're not immune," he said. "San Francisco will lose 30,000 to 40,000 jobs this next year. That's a big number, and vacancy rates are going up, no doubt about it."

Two distinct but intertwined problems face owners of office buildings.

First, the lower occupancy and rental rates mean it's increasingly difficult for landlords to make their debt payments, forcing more and more to default - and some into foreclosure.

Second, tighter underwriting standards, declining cash flow and plummeting asset values mean that many of the loans coming due will be impossible to refinance without substantial equity injections.

Read the full story »

Small Banks Worry About Commercial Real Estate

noreply@blogger.com (Investor News Team) — Tue, 05 May 2009 18:37:00 +0000

Source: Wall Street Journal

In the worst-case scenario, federal regulators examining the 19 largest U.S. banks are projecting losses of up to 12% on commercial real-estate loans over two years, according to a document viewed by The Wall Street Journal.

The regulators are likely to cite commercial-property debt problems as a major reason why at least some of the large banks need additional capital.

Such losses likely would cause even deeper misery, and risk of failure, at small and medium banks because they tend to have disproportionally more exposure to commercial real-estate loans than giant institutions.

Analysts already had been forecasting hundreds of bank closures in the next five years. The stress-test assumptions, including a 10.3% jobless rate at the end of 2010, raise the specter that some of the failures could occur sooner.

Read the full story »

Commercial Loan Rates for 04.31.09

noreply@blogger.com (Investor News Team) — Thu, 30 Apr 2009 14:25:00 +0000

New commercial loan rates posted today with minor fluctuations, still solid numbers available for qualified deals although the capital market is moving quite slowly in anticipation of changes in valuation throughout 2009. Multifamily loans are the strongest of the property types at this juncture, along with our new distressed asset program, we'll keep you posted.