CRE Price Recovery Continues Despite Seasonal Volatility

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By Randyl Drummer
May 21, 2012

Despite a generally flat March for pricing of commercial property, prices recovered to mid-2003 levels in the first quarter as improving fundamentals and liquidity causing a broadening of the recovery into non-core commercial real estate and secondary markets, according to this month’s CoStar Commercial Repeat Sale Indices (CCRSI) report.

The U.S. Composite Index ended the first quarter 4.3% above the same period in 2011, although prices are still 34.5% lower than the peak levels in 2007. The U.S. General Commercial Index, … [Full Article]

Buy or Sell? Current Multifamily Conditions Favorable for Either Strategy

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By Mark Heschmeyer
May 23, 2012

Behringer Harvard Multifamily REIT I, a $2.8 billion nontraded REIT, is weighing a number of diverse options, in light of the current hot market for multifamily properties.

The Dallas-area-based REIT has hired an investment bank to explore strategic alternatives including a sale or merger of the REIT. Or, on the other hand, whether it should explore more acquisition opportunities, …[Full Article]

Apartment Industry Marks 5th Consecutive Quarter of Growth

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The apartment industry has enjoyed its fifth consecutive quarter of uninterrupted growth, according to the latest results of the National Multi Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions.

The report proves that optimism continues for the multifamily industry. The findings reflect a gradual recovery for the multifamily sector that faced a 50-year low in apartment starts in 2009.

“Market conditions improved across the board, even from the rather strong level of three months ago,” said NMHC Chief Economist Mark Obrinsky. “Demand for apartment residences – and apartment properties – continues to grow. [FULL ARTICLE]

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]