11/02/11

CMBS 2.1 Several New York Managing Directors have graced the halls of GSP over the last two weeks, supporting their need for stabilized product. One Investment Bank has signaled us within two hours of going-to-press that they are seeking to fund $100,000,000 by year-end. Spreads remain stable as SWAPs have compressed, netting all-in coupons from 5.60% to 5.90% for 10-year fixed rate non-recourse debt. Acknowledging that they can not compete with the insurance company rates, CMBS originators are willing to offer loans down to $5,000,000, fund in tertiary markets and address non-traditional loan requests including hospitality and single tenant leases. Loan to Values as high as 75% are obtainable prior to layering on mezzanine debt. Mezz-debt is available on larger loan requests.