Archive for the 'Scoreboard' Category

Real Estate Capital Scoreboard – August, 2010

Yazan: RECI | 06 August 2010 | No Comments
Categories: News|Views, Scoreboard

Conservatively underwritten income-property loans are precious commodities capturing premium pricing and terms.

Yazan: RECI | 02 August 2010 | No Comments
Categories: Scoreboard

 Chicago, Illinois, August 2, 2010 – Mid-year key economic indicators point to a more moderate recovery.  During July, benchmark treasuries moved within a quarter point range and settled lower by about 20 basis points for five-year notes, while ten-year notes moved down less than 10 basis points, respectively.  Mortgage spreads continued to barely tighten, netting [...]

The Real Estate Capital Scoreboard® – July, 2010

Yazan: RECI | 07 July 2010 | No Comments
Categories: Scoreboard

Floating-rate loans stay attractive, sometimes below 4%, as fears of inflation dissipate for the time-being.

The Real Estate Capital Scoreboard® -June, 2010

Yazan: RECI | 05 June 2010 | No Comments
Categories: Scoreboard

Targeted risk analysis is especially important today, given that uncertainty and ongoing shifts in demographics, consumer behavior and variability in economic and fiscal performance between and within regions that can be expected.

The Real Estate Capital Scoreboard® – May, 2010

Yazan: RECI | 05 May 2010 | No Comments
Categories: Scoreboard

Like Humpty Dumpy, investors sit on piles of cash. These investors will either find profitable opportunities, or, cushion any financials falls by paying down debt on existing holdings.

The Real Estate Capital Scoreboard® – April, 2010

Yazan: RECI | 01 April 2010 | No Comments
Categories: Scoreboard

In a sign of renewed optimism, Wall Street reenters the markets in its more traditional role of funding large and highly structured transactions, as well as ventures with debt/equity components.

The Real Estate Capital Scoreboard® – March, 2010

Yazan: RECI | 02 March 2010 | No Comments
Categories: Scoreboard

Denial is now being replaced with Decision.

The Real Estate Capital Scoreboard® – February, 2010

Yazan: RECI | 01 February 2010 | No Comments
Categories: Scoreboard

Realty capital activity is extremely limited, but mild optimism is in the air.

The Real Estate Capital Scoreboard® – January 2010

Yazan: admin | 02 January 2010 | No Comments
Categories: Scoreboard

The markets are bouncing along the market bottom as values continue to slide, but at less dramatic levels.

The Real Estate Capital Scoreboard® – December 2009

Yazan: realtycapital | 01 December 2009 | No Comments
Categories: Scoreboard

Mark Hayton, an Advisory Board Member of the Real Estate Capital Institute notes, “Credit-tenant commercial properties remain financeable, although strict underwriting standards are necessary.”

The Real Estate Capital Scoreboard® – November 2009

Yazan: realtycapital | 02 November 2009 | No Comments
Categories: Scoreboard

The Great Recession has permanently altered consumer, investment, and governmental behavior.

The Real Estate Capital Scoreboard® – October 2009

Yazan: admin | 01 October 2009 | No Comments
Categories: Scoreboard

Valuation driven by lower-leverage debt pricing and higher equity yields offers the most effective methodology for understanding values in today’s illiquid markets.

The Real Estate Capital Scoreboard® – September 2009

Yazan: admin | 01 September 2009 | No Comments
Categories: Scoreboard

Defensive investment tactics are the norm rather than the exception until more trades occur and properties are marked-to-market based on current conditions

The Real Estate Capital Scoreboard® – August 2009

Yazan: realtycapital | 03 August 2009 | No Comments
Categories: Scoreboard

Many legacy owners are more concerned about losing income stream rather than capturing new opportunity plays.

The Real Estate Capital Scoreboard® – July 2009

Yazan: realtycapital | 01 July 2009 | No Comments
Categories: Scoreboard

Smaller properties below $25 million enjoy the most amount of acquisition activity. Larger projects still create issues for attracting optimum leverage and sufficient funding sources.

The Real Estate Capital Scoreboard® – June 2009

Yazan: realtycapital | 01 June 2009 | No Comments
Categories: Scoreboard

Sellers without a dire need to for immediate liquidity are taking a ‘wait and see’ position. Today’s indecision could lead to tomorrow’s panic to sell against upcoming CMBS and bank loan maturities without refinancing options

The Real Estate Capital Scoreboard® – May 2009

Yazan: realtycapital | 01 May 2009 | No Comments
Categories: Scoreboard

Lenders, borrowers, investors, tenants, developers and nearly everyone in the real estate industry is in a defensive mode.” He suggests, “As TARP/TALP funds trickle into the financial system and lenders mark down legacy assets to current metrics and sell those assets, more badly-needed liquidity will return to the industry and transaction activity will increase.

The Real Estate Capital Scoreboard® – April 2009

Yazan: realtycapital | 01 April 2009 | No Comments
Categories: Scoreboard

While declining rents, rising capitalization rates, and challenging economic and financial conditions make for black moods for real estate investors and developers, this is a good time to prepare for the return of prosperity.

The Real Estate Capital Scoreboard® – March 2009

Yazan: realtycapital | 02 March 2009 | No Comments
Categories: Scoreboard

Distressed deals will be the norm for most new acquisitions and investors will be overwhelmed with renegotiating overleveraged debt.

The Real Estate Capital Scoreboard® – February 2009

Yazan: realtycapital | 02 February 2009 | No Comments
Categories: Scoreboard

Buyers and sellers are still reluctant to transact, mostly due to stingy debt markets. However signs of improvement are emerging as buyers realize few opportunities for core properties are available.

The Real Estate Capital Scoreboard® – January 2009

Yazan: realtycapital | 02 January 2009 | No Comments
Categories: Scoreboard

2009 looks to be a year of refinancing and with limited acquisition activity. Distressed deals will be the norm for most new acquisitions and lenders will be overwhelmed with renegotiating overleveraged debt.

The Real Estate Capital Scoreboard® – December 2008

Yazan: realtycapital | 01 December 2008 | No Comments
Categories: Scoreboard

The Fed continues a monetary blitz of helping banks and other financial institutions return to the market to recreate more competition and liquidity.

The Real Estate Capital Scoreboard® – November 2008

Yazan: realtycapital | 01 November 2008 | No Comments
Categories: Scoreboard

Seven Percent – The New Mortgage Rate Benchmark for Income Properties…

The Real Estate Capital Scoreboard® – October 2008

Yazan: realtycapital | 01 October 2008 | No Comments
Categories: Scoreboard

Chicago, Illinois, October 1, 2008 – It’s a good news/bad news real estate capital marketplace.  Mortgage markets are plagued by Wall Street market malaise and swooning prices, yet as far as commercial real estate debt is concerned, overall default rates and profit performance remain at historically favorable levels   Funding sources and borrowers alike are very [...]

The Real Estate Capital Scoreboard® – September 2008

Yazan: realtycapital | 01 September 2008 | No Comments
Categories: Scoreboard

Low leverage begets low volume.

The Real Estate Capital Scoreboard® – August 2008

Yazan: realtycapital | 01 August 2008 | No Comments
Categories: Scoreboard

Buyers and sellers are still reluctant to transact, mostly due to stingy debt markets. However signs of improvement are emerging as buyers realize few opportunities for core properties are available.

The Real Estate Capital Scoreboard® – July 2008

Yazan: realtycapital | 02 July 2008 | No Comments
Categories: Scoreboard

All in all, rates are still very attractive by historical standards; however, more equity is required to capture financing.

The Real Estate Capital Scoreboard® – June 2008

Yazan: realtycapital | 02 June 2008 | No Comments
Categories: Scoreboard

Chicago, Illinois, June 2, 2008 – Despite unprecedented measures by The Federal Reserve, the credit crunch continues to spread from the housing sector to the commercial real estate sector.  The volume of real estate transactions remains light and credit spreads have recently started to tighten while overall rates are rising — with a net effect of mortgage [...]

The Real Estate Capital Scoreboard® – May 2008

Yazan: realtycapital | 01 May 2008 | No Comments
Categories: Scoreboard

The most profitable and illiquid component of the real estate capital stack is mezzanine debt. In many cases, developers and property owners find it more attractive to lend mezzanine funds as opposed to directly purchasing properties.

The Real Estate Capital Scoreboard® – April 2008

Yazan: realtycapital | 01 April 2008 | No Comments
Categories: Scoreboard

The long-term solution for improving capital market malise is to educate and protect the demand side by encouraging moderation and safer practices.

The Real Estate Capital Scoreboard® – March 2008

Yazan: realtycapital | 03 March 2008 | No Comments
Categories: Scoreboard

Current CMBS pricing reflects a discount for any security that is in a ‘structure’ and is not reflective of the underlying real estate.

The Real Estate Capital Scoreboard® – February 2008

Yazan: realtycapital | 01 February 2008 | No Comments
Categories: Scoreboard

Reliability of buyer performance has emerged as a top priority creating opportunity for groups that follow through on purchases.

The Real Estate Capital Scoreboard® – January 2008

Yazan: realtycapital | 02 January 2008 | No Comments
Categories: Scoreboard

Securitized lenders are not currently quoting deals to win. They will lend, but only under their terms.

The Real Estate Capital Scoreboard® – December 2007

Yazan: realtycapital | 03 December 2007 | No Comments
Categories: Scoreboard

The re-found recognition and re-pricing of risk will in the long run be healthy for market participants.

The Real Estate Capital Scoreboard® – November 2007

Yazan: realtycapital | 01 November 2007 | No Comments
Categories: Scoreboard

The markets are back to ‘normal’ as defined about three years ago.

The Real Estate Capital Scoreboard® – October 2007

Yazan: realtycapital | 01 October 2007 | No Comments
Categories: Scoreboard

After more than a decade of borrower-friendly funding, lenders are gaining the upper hand in transaction negotiations.

The Real Estate Capital Scoreboard® – September 2007

Yazan: realtycapital | 04 September 2007 | No Comments
Categories: Scoreboard

During the last three years the CMBS markets completely dominated nearly all sectors of the capital markets and Wall Street’s malaise brings a more level playing field for [traditional] lenders.

The Real Estate Capital Scoreboard® – August 2007

Yazan: realtycapital | 01 August 2007 | No Comments
Categories: Scoreboard

Unless a property is in a very desirable market backed by high-quality cash flow, sellers should expect more challenging price negotiations than in recent years.

The Real Estate Capital Scoreboard® – July 2007

Yazan: realtycapital | 01 July 2007 | No Comments
Categories: Scoreboard

From a historical perspective, leverage availability and underwriting standards are more liberal than any time during the past few decades.

The Real Estate Capital Scoreboard® – June 2007

Yazan: realtycapital | 01 June 2007 | No Comments
Categories: Scoreboard

Rates are still attractive despite overall increases in spreads and treasuries. Lenders demonstrate vast creativity in funding all types of loans.

The Real Estate Capital Scoreboard® – May 2007

Yazan: realtycapital | 01 May 2007 | No Comments
Categories: Scoreboard

Realty capital markets are fraught with cash. Virtually any project backed by qualified sponsorship and sound economics is financeable.

MORTGAGE RATES

« "Current permanent loan rates for income-properties start at 5.5%. Dial 773-CAPITAL (227-4825) for the Real Estate Capital Rateline for daily update." »

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Chicago, Illinois, August 2, 2010 – Mid-year key economic indicators point to a more moderate recovery.  During July, benchmark treasuries moved within a quarter point range and settled lower by about 20 basis points for five-year notes, while ten-year notes moved down less than 10 basis points, respectively.  Mortgage spreads continued to barely tighten, netting slightly lower overall rates. Throughout the first half of the year, lenders have been scouring the realty markets in search of performing projects with stabilized cash flow.  Yet limited opportunities may be found.  Simultaneously, scant funding options are available for projects without cash flow performance.   Few capital sources reach for deals on longer-term cash flow projects, unless substantial equity exists.  With mortgage rates starting in the mid-4% range for longer term debt of seven years or greater, borrowers are migrating from floating-rate to fixed-rate debt.  As rates are at historical lows, focus on loan terms - other than pricing - include the following:  Loan-to-value sizing dominates underwriting funding limits, as debt service coverage ratios are relatively high due to low rates Subordination and non-disturbance agreements are more important to lenders as various players in the capital stack (e.g., mezzanine and preferred equity) take on new positions in situations where developer equity is reduced or eliminated Real estate tax and insurance collection conditions are more stringent, with lenders seeking tighter control in case of default Property insurance carriers must meet higher standards due to default within the industry Unauthorized transfers are no longer covered by most title policies, adding additional recourse carveouts Skip Perry, Real Estate Capital Institute advisory board member notes that "lenders want quality loans, and are willing to sacrifice yield in return for safety of principal."  He suggests, "conservatively underwritten income-property loans are precious commodities capturing premium pricing and terms.”