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Cushman & Wakefield - Capital Markets Update

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  • 1. April 2, 2012MARKET COMMENTARY• CMBS spreads have continued to tighten over the past couple of weeks, with market. Trepp’s analysts are now looking hard at 2016, and the unusually high LTV’sbenchmark super-seniors now pricing at swaps + 220. Investor appetite for 7- and 10- in many of those securities.year bonds has been relatively strong, with the result that 5-year conduit quotes areessentially on top of 10-year quotes in terms of all-in pricing. • According to statistics providing by RCA and C&W Capital Markets, global CRE transaction volume reached $808B in 2011, with Asia Pacific comprising nearly 50%• Life insurance companies are showing an increasing willingness to quote loan terms of that total volume, Europe recovering to 2006 transaction levels and the U.S. atgreater than 10 years. We are now seeing active LC interest in 15, 20 and even 30 $200B, comparable to 2004 levels. In keeping with that trend, eight of the top-twentyyear maturities, with pricing starting at 4.25% for 15/15 deals and running up to 5.20% most active investors were Asian. Four U.S. investors made the top-twenty list withfor 30/30 deals. Blackstone grabbing the #1 spot with $9B of acquisitions. New York and London were at the top of the list in terms of metro trading activity, at $35B and $29B,• Trepp reported that CRE debt maturing in 2012 totals $360B while the five-year total respectively. LA and D.C. finished in the top five most active markets with $17Bfor the period 2012-2016 is nearly $1.73T. Previously, many analysts had focused on each of transactions.the 2012-2014 maturities as presenting the most challenging refinancing need in theSubscribers to the Bloomberg Professional service can now access the CWSG Capital Markets update by typing CWSG<GO>. 2 3 4 5 8 10 18RECENT DEALS/CLOSINGS/QUOTES – DEBTAsset Type Type of Financing Type of Lender Rate/Return Loan-to-Value Term Amortization/CommentsOffice Floating Bank L + 250 65% 3 years plus two 12-month ext. IOOffice Fixed Bank 4.30% 70% 7 years 25 yearOffice Fixed Bank 5.10% 70% 10 years 25 yearOffice Fixed Life Company T + 200 60% 15 years 30 yearOffice Floating Bank L + 235 60% 7 years 30 year, 3 Years IOOffice Fixed Bank 4.25% 75% 5 years 25 yearMultifamily Fixed Agency T + 240 75% 5 years 30 yearMultifamily Fixed Agency T + 230 75% 7 years 30 yearMultifamily Fixed Agency T + 210 75% 10 years 30 yearHotel Floating Bank L + 300 55% 3 years plus two 12-month ext. IOHotel Floating Bank L + 300 60% 3 years plus two 12-month ext. 25 yearOffice Fixed Bank S + 230 65% 5 years 30 year, 2 Years IOOffice Floating Bank L + 250 65% 5 years IO, 0.75% feeIndustrial Fixed Life Company 4.30% 70% 20 years 20 yearIndustrial Fixed Life Company 4.90% 75% 20 years 20 year 2 3 4 5 8 10RECENT DEALS/CLOSINGS/QUOTES - EQUITYAsset Type Type of Financing Type of Investor Target Return Equity Contribution Levels CommentsMulti-Family Development JV Equity Insurance Company 22% 80%/20% 35% above 10%, 45% above 15%, 50% above 18%Multi-Family Development JV Equity Opportunity Fund 22% 90%/10% 10% above 12%, 20% above 15%, 30% above 18%Office Preferred Equity REIT 8% 100%/0% Up to 65% LTVMixed-Use - Development JV Equity Opportunity Fund 25% 75%/25% 20% above 12%, 25% above 20%, 30% above 25%Retail Preferred Equity Pension Fund 10% 100%/% Up to 70% LTVSENIOR & SUBORDINATE LENDING SPREADS BASE RATES Maximum Loan-to-Value DSCR Spreads April 2, 2012 Two Weeks Ago One Year AgoFixed Rate - 5 Years 65 - 70% 1.30 - 1.50 T + 195 - 380 30 Day LIBOR 0.24% 0.24% 0.24%Fixed Rate - 10 Years 60 - 70%* 1.30 - 1.50 T + 165 - 350 U.S. TreasuryFloating Rate - 5 Years 5 Year 1.03% 1.20% 2.23% Core Asset <65%* 1.30 - 1.50 L + 200 + 325 10 Year 2.20% 2.39% 3.47% Value Add Asset <65%* 1.25 - 1.40 L + 325 - 500 Swaps Current Swap SpreadsMezzanine Moderate Leverage 65 - 80% 1.05 - 1.15 L + 700 + 900 5 Year 1.27% 0.24%Mezzanine High Leverage 75 - 90% L + 1000 + 1400 10 Year 2.28% 0.08%* 65 - 70% for Multi-Family (non-agency); Libor floors at 0-1%10-YEAR FIXED RATE RANGES BY ASSET CLASS Cushman & Wakefield Sonnenblick Goldman has raised approximately Maximum Loan-to-Value Class A Class B/C $25 billion of capital from more than 125 capital sources for 270Anchored Retail 70 - 75% T + 270 T + 280 transactions in the past five years. For more information on this reportStrip Center 65 - 70% T + 290 T + 305 or on how we can assist your financing needs or hospitality or noteMulti-Family (non-agency) 70 - 75% T + 235 T + 240 sales, please contact any CWSG office or:Multi-Family (agency) 75 - 80% T + 190 T + 195 Christopher T. MoyerDistribution/Warehouse 65 - 70% T + 285 T + 300 Associate DirectorR&D/Flex/Industrial 60 - 65% T + 295 T + 310 (212) 841-9220Office 65 - 70% T + 270 T + 290 chris.moyer@cushwake.comFull Service Hotel 55 - 65% T + 325 T + 350* DSCR assumed to be greater than 1.35x New York - HQ Atlanta Boston Los Angeles San Diego San Francisco Washington, D.C. 1290 Avenue of the Americas 55 Ivan Allen Jr. Blvd. 125 Summer Street 601 S. Figueroa St. 4435 Eastgate Mall One Maritime Plaza 2001 K Street, NW 8th Floor Suite 700 Suite 1500 Suite 4700 Suite 200 Suite 900 Suite 700 New York, NY 10104 Atlanta, GA 30308 Boston, MA 02110 Los Angeles, CA 90017 San Diego, CA 92121 San Francisco, CA 94111 Washington, DC 20006 T 212 841 9200 T 404 875 1000 T 617 330 6966 T 213 955 5100 T 858 452 6500 T 415 397 1700 T 202 467 0600

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