Commentaries

Real estate investors go begging

July 29, 2009

Investors in real estate funds can’t give their stakes away.

In another sign of more bad news to come for commercial real estate, NYPPEX Private Markets reports a sharp drop in prices for limited partnership stakes in real estate funds in the unregulated secondary market. NYPPEX says the average bid for these partnership shares plunged 61% over the past month to a price that represents roughly 22 cents on the dollar.

from Rolfe Winkler:

The CRE disaster

July 23, 2009

Earlier this week, I was surprised when I read that Moody's put the decline in commercial real estate at 16% over the last TWO MONTHS.  That's a stunning rate of decline that has very negative consequences for banks who are still carrying commercial whole loans on their balance sheet at close to 100¢ on the dollar.cre-vs-residential-prices

Rejected CMBS looks stressed out

July 23, 2009

More on the CMBS deal rejected by the Fed under its TALF program:

The deal has above-average stress points when compared with those that were accepted. According to Bank of America’s breakdown, 90-day plus delinquencies, for example, were at 3.2% compared with the 1.27% average of those accepted. The highest delinquency rate of those accepted, however, was 4.41%.

Fed’s TALF not stimulating much of anything in CMBS

July 16, 2009

The numbers are out and they’re not looking too good for the commercial real estate market. Investors only applied for $669 million of loans using old, or legacy, CMBS, as collateral, Reuters is reporting. No one requested loans from the New York Fed using new CMBS, but that’s hardly a surprise since the market has been frozen since last year.

The debt nightmare is still with us

July 15, 2009

Pouring trillions of dollars into the global financial system has done more than pull the world away from the abyss.

Commercial real estate in the dumps

June 24, 2009

David Bodamer over at Clusterstock has some interesting color from a commercial real estate conference where the mood was decidedly grim. Rather than being cheered by the hope that the Fed’s inclusion to commercial mortgage bonds its TALF program will alleviate the stress, participants seem resigned that the worst is yet to come.