Noteworthy News
Signs of the Times? For as many who say that the capital markets crises is easing or ending or whatever, there is daily evidence that things are not quite that rosy as shoe after shoe continues to drop. A number of this week’s shoes included the following:
NOTE: THIS IS IMPORTANT!!!
A newly released Internal Revenue Service tax rule will allow commercial real estate borrowers to discuss possible loan modifications and/or restructurings of securitized mortgage loans directly with the Special Servicer prior to a default or delinquency without triggering tax penalties. The ruling, hopefully, will make restructuring of CMBS loan substantially easier.
Monday’s Numbers
Year-to-Date Equity Market Performance (as of September 19, 2009):
DJIA(1): +11.89%
S & P 500(2): +18.27%
NASDAQ(3): +35.25%
Russell 2000(4): +23.17%
MSCI U.S. REIT(5): +17.24%
(1) Dow Jones Industrial Average.
(2) Standard & Poor’s 500 Stock Index.
(3) NASD Composite Index.
(4) Small Capitalization segment of U.S. equity universe.
(5) Morgan Stanley REIT Index.
U.S. Treasury Yields: (as of September 19, 2009)
3-month: 0.08%
6-month: 0.19%
2-Year: 0.99%
5-Year: 2.45%
10-Year: 3.346%
Indicated Spreads for Conventional Fixed and Floating Commercial Mortgages (as of September 1, 2009)
| Property Type | Mid-Point of Commercial Mortgage Rate Spreads for 5-10 Year Fixed-Rate Mortgages | ||||
| 6/29/09 | 7/14/09 | 7/29/09 | 8/20/09 | 9/1/09 | |
| Multifamily: Non-Agency | +280 | +340 | +350 | +400 | +425 |
| Multifamily: Agency | +265 | +210 | +220 | +220 | +240 |
| Regional Malls | +518 | +500 | +475 | +470 | +458 |
| Strip/Power Centers | +463 | +455 | +450 | +465 | +465 |
| Multi-Tenant Industrial | +460 | +450 | +463 | +475 | +488 |
| CBD Office | +455 | +420 | +420 | +443 | +460 |
| Suburban Office | +460 | +460 | +460 | +478 | +475 |
| Full-Service Hotel | +563 | +525 | +453 | +525 | +563 |
| Limited-Service Hotel | +588 | +588 | +550 | +550 | +575 |
| 5-Treasury | 2.76% | 2.33% | 2.70% | 2.65% | 2.47% |
| 10-Year Treasury | 3.50% | 3.44% | 3.69% | 3.46% | 3.45% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
| Property Type | Mid-Point of Floating Rate Commercial Mortgage Rate Spreads for 3-5 Year Fixed-Rate Mortgages | ||||
| 6/26/09 | 7/14/09 | 7/29/09 | 8/20/09 | 9/01/09 | |
| Multifamily: Non-Agency | +475 | +450 | +413 | +413 | +413 |
| Multifamily: Agency | NA | NA | NA | NA | NA |
| Regional Malls | +550 | +550 | +550 | +500 | +475 |
| Strip/Power Centers | +525 | +538 | +538 | +488 | +488 |
| Multi-Tenant Industrial | +475 | +488 | +488 | +488 | +413 |
| CBD Office | +500 | +513 | +525 | +488 | +375 |
| Suburban Office | +600 | +600 | +600 | +550 | +388 |
| Full-Service Hotel | +650 | +650 | +650 | +650 | +600 |
| Limited-Service Hotel | +725 | +725 | +725 | +725 | +650 |
| 1-Month LIBOR | 0.31% | 0.30% | 0.29% | 0.27% | 0.26% |
| 3-Month LIBOR | 0.61% | 0.54% | 0.49% | 0.43% | 0.38% |
| Source: Cushman & Wakefield Sonnenblick-Goldman, LLC. | |||||
