Monthly Archives: May 2012

Interest Rates Down, Leverage Up for Conduit Loans

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Apr 23, 2012 10:31 AM, By Bendix Anderson, Contributing Writer

Conduit lenders are competing for investors’ business, offering progressively lower interest rates and larger loans to commercial real estate borrowers, according to worried bond underwriters at Moody’s Investors Service.

“Spreads have come in … some lenders are offering more leverage,” says Tad Philipp, director of commercial real estate research for Moody’s and co-author of a report “U.S. Q1 2012 Review: Q2 Poised to See More Highly Leveraged Collateral Pools, Increased Subordination Levels.” [FULL ARTICLE]

Multifamily Sales Decrease in 1Q12, But Average Price Increases

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Apr 17, 2012 12:29 PM, Staff Reports

Preliminary first quarter 2012 multifamily property sales data indicate that transaction velocity decelerated from the rapid pace observed during the fourth quarter of 2011.

After recording more than 360 U.S. apartment sales valued at $10 million or more during the fourth quarter of 2011, total sales closed during January, February and March probably declined by one-third or more. The average price of a unit traded in the first quarter of 2012, increased, however, rising 5 percent from $122,400 in the fourth quarter of 2011 to $128,600 during… [FULL ARTICLE]