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Volume 11 | No. 13 | March 27, 2008
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KEY RATE INDICES
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5 Yr US Treasury
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2.54%
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2 Yr Swaps
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2.56%
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1 Month LIBOR
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2.65%
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Prime Rate
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5.25%
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10 Yr US Treasury
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3.51%
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5 Yr Swaps |
3.45%
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3 Month LIBOR
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2.66%
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11th Dist COFI |
3.97%
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30 Yr US Treasury |
4.36%
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10 Yr Swaps |
4.18%
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6 Month LIBOR |
2.63%
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12-MAT |
3.89% |
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Recent Financings |
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Transaction Description: |
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$1,875,000 Cash-Out Refinance for Multifamily in North Carolina:
CapitalMAC has arranged non-recourse financing for this property. Highlights
Include: Reduced pre-payment penalty, 5/30 fixed rate financing converts
automatically to floating rate Issues: (1) Property located
in small town with low surrounding demographic profile
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Rate: 5 Yr T + 1.65 bps |
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Term: 10 yr / 30 yr |
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Amort: 30 Years |
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LTC: 76% |
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Non-recourse |
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Lender Fee: 0.50% |
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Loan Consultant:
Fred Smith
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Transaction Description: |
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$743,000 Permanent Financing for a Medical Condominium in Ohio:
90% LTV financing on a 10/30 Submarket: Medical use
Highlights: Provided 90% LTV with an additional 50% of cost of construction
build-outs to modernize space.
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Rate: 7.15% |
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Term: 10 Yr |
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Amort: 30 Yrs |
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LTV: 90% |
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Recourse |
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Lender Fee: .05%
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Loan Consultant: Susan Orehowsky
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New Nationwide Fixed To Float Rate Program ($500,000 to $10,000,000).
Streamlined docs - Automatically converts to Float Rate after Fixed Rate Period
ends - NO BALLOON - Flexible Prepay
Total Costs: A processing fee of the greater of $2,000 or 12.5 bps
of the loan amount covers standard loan documentation, appraisal and legal, 35-45
day closings. Can do non-recourse.
Property Types: Multifamily, Office, Retail, Industrial, & Mixed-Use
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Transaction Size: $500K-10M |
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Rate: T + 160-195 bps |
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Loan Term: 5, 7, 10 yrs |
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Amort: up to 30 yrs |
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Max LTV: 80% |
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Min DSCR: 1.20 |
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Recourse Negotiable |
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Prepayment: declining step penalty. Can reduce in half for 12.5 to 30
bps |
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Geography: Nationwide |
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Interest Rates & Market Update |
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Fixed Rate Loans |
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Adjustable Rate Loans |
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Property type - starts as low as |
Apartments/Fannie Mae ARM - 6.59% |
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Apartments/Units - 5.15% |
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Senior housing - 5.90% |
Bridge Loans |
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Manufactured housing communities - 5.75% |
8.00% - 12.00% |
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Office - 5.15% |
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Retail - 5.45% |
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Industrial - 5.75%
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Hotel - 6.15%
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CMBS Continues Rally; Market Improves
The CMBS (commercial mortgage backed securities) market's tone has improved,
with spreads on CMBX tightening across the board, in some cases sharply. Spreads
on super-senior AAA bonds ended last week at an average of 245 basis points over
swaps, in from nearly 309 bp over swaps a week earlier, according to the Commercial
Real Estate Direct CMBS Pricing Matrix. The market's tone seems to have improved
markedly and some attribute the market optimism to recent Federal Reserve actions
to improve liquidity.
Fitch: 99% of Maturing Fixed-Rate U.S. CMBS Successful
in Refinancing
NEW YORK--(BUSINESS WIRE)--Given the current lack of available liquidity in the
capital markets, investors view refinancing of maturing loans a heightened risk
for U.S. CMBS. Reflecting this investor concern, Fitch Ratings looked closely at
the performance of recently matured U.S. CMBS loans and their ability to refinance
in the stressed credit environment. Fitch found that despite market issues, 99%
of all maturing fixed-rate mortgages still refinanced. A total of 3,354 U.S. CMBS
fixed rate loans with a balance of $21.4 billion have been refinanced since Aug.
1, 2007 when the credit crunch began. The majority of maturing loans were 10-year
fixed-rate loans with the highest concentration in the 1997 through 1999 vintages.
By property type, 927 loans backed by multifamily assets experienced the most refinance
activity with $5 billion (23%) refinanced during the last eight months. This was
followed by 744 retail loans at $4.7 billion (22%), 218 hotel loans at $4.5 billion
(21.2%) and 449 office loans at $3.3 billion (15.6%). The geographic concentration
of recent maturities is similar to that of most CMBS transactions. By state the
maturities were concentrated with $3.7 billion in New York (18%), $3.3 billion in
California (15.4%), $1.9 billion in Florida (9%), and $1.6 billion in Texas (7.8%).
"The diversity of property type and geographic distribution of recent refinancing
activity shows that debt capital is still widely available for commercial real estate,"
said Susan Merrick, Managing Director and head of U.S. CMBS for Fitch Ratings. Fitch
found that low leverage and high existing coupons contributed to the ability of
loans to refinance in a more restrictive lending environment. New lenders are typically
insurance companies and regional banks.
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Record Period Of Growth |
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CapitalMAC is experiencing a record-setting period of growth. As
we continue to expand nationally, we are selectively seeking several seasoned and
successful financial professionals to join our team. Please direct confidential
inquiries to Let's
Talk Careers >, or call us at (888) GO-CMAC1.
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Contact Us |
 Call Us
Call us to apply over the telephone or to simply learn more about our products and
services. Monday through Friday 8:00 AM to 5:00 PM and Saturday 9:00 AM to 3:00
PM EST.
1-888-GO-CMAC1
1-888-462-6221
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E-mail Us
Click below to fill out our easy Online Pre-Qualify form to get a prompt response.
Get
Your Deal
Quoted Now >
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Capital Mortgage Acceptance Corporation
1111 Brickell Avenue 11th Floor
Miami, FL 33131
www.CapitalMAC.com
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Los Angeles
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Washington D.C.
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Copyright ©2008 Capital Mortgage Acceptance Corporation. All rights
reserved. This article is protected by United States copyright and other intellectual
property laws and may not be reproduced, rewritten, distributed, re-disseminated,
transmitted, displayed, published or broadcast, directly or indirectly, in any medium
without the prior written permission of Capital Mortgage Acceptance Corporation.
CapitalMAC Edge Newsletter™ is an e-Publication of Capital Mortgage Acceptance Corporation.
CapitalMAC™ and CapitalMAC Edge™ Newsletter are trademarks and service
marks of Capital Mortgage Acceptance Corporation (CapitalMAC™) in the United
States. For Promotional Purposes Only. |
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