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By AZ Advisory Team, February 4, 2010 8:09 pm

Commercial real estate and multifamily property mortgage loan originations were 12 percent higher in the fourth quarter of 2009 than during the same period last year, and 15 percent higher than the third quarter of 2009 according to a quarterly survey released by the Mortgage Bankers Association (MBA) Tuesday at its Commercial Real Estate Finance convention in Las Vegas.

“Commercial and multifamily mortgage originations picked up in the fourth quarter, but remain at a low level in absolute terms,” explained Jamie Woodwell, VP of commercial real estate research at MBA. “The trend shows stability coming back to the market, but the pick-up in volumes really indicates just how low origination levels had fallen.”

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 22, 2010 3:40 pm

Lenders Remain Cautious, but Encouraging Signs Emerge. Banks will remain the primary source of financing for commercial real estate, with the exception of apartments, which will continue to benefit from agency lending. Life insurance companies are showing renewed interest in lending, but a 2010 surge is unlikely due to capacity limitations. While traditional CMBS is not expected to become a major source of financing in the near term, the first TALF-eligible CMBS issuance was met with strong demand and paved the way for a few non-TALF deals in the weeks that followed.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 11, 2010 4:02 pm

The troubled US commercial real estate sector has been attracting a new wave of capital from sources including US private equity firms, foreign banks and foreign investors. Although the current situation is good for opportunistic investors,  their bottom-feeding strategies can be disrupted by rising interest rates.

Nonetheless, the growing interest from investors and the deals coming out of it will bring liquidity to the market which would help the commercial real estate sector, the affected banks and the US economic recovery.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, January 5, 2010 4:27 pm

We think that troubles in commercial real estate will not be that bad to bring down the economy.

Other analysts said last year that pending commercial-property bankruptcies could push the country back into recession – wreaking damage on the financial system equivalent to the subprime residential mortgage losses. We disagree to this because the  value of outstanding commercial mortgages is only a fraction of the value of outstanding residential mortgages.

Nonetheless, more losses will come over the next couple of months or years for commercial property owners and their lenders. The amount of loss and regained investments would depend on how owners, investors and lenders hold or sell their commercial properties and then make strategic acquisitions that is more aligned to their objectives, core and operational competencies as well as a good build-up timing for the coming upturn.

Commercial real estate’s decline in value is already slowing this year and we should expect it to bottom and turn around by the half of 2010.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 24, 2009 9:46 pm

The FDIC has received bids from over a dozen investors for a $1.1 billion dollar package of commercial real-estate loans that they acquired from various failed banks.

The portfolio consists of mostly nonperforming commercial property loans. Demand for these assets, at a discounted price, has grown intense. Investors have amassed billions of dollars to buy distressed loans and property much as investors like Sam Zell did in the early 1990s.

“A lot of investors are anxious to invest cash they have raised,” said David Tobin, a principal with Mission Capital Advisors, a loan-sale adviser.

The increased demand is welcome news for the FDIC, which is selling the portfolio of loans at a discount, while trying to limit taxpayer losses and shore up its deposit-insurance fund.

Some analysts are optimistic the price may get driven up from competing bidders.

The sale comes during a time when the FDIC is facing unprecedented challenges which make this sale the equivalent of putting a finger in the dike. As banks continue to fail, along with the estimated costs of those failures, the FDIC is urgently seeking to replenish their deposit insurance fund, which was showing a negative $8.2 billion balance at the end of September.

So far, the financial crisis has swallowed up 140 banks, leaving the FDIC with about $30 billion in real-estate debt that is available for sale for the next 12 months. That figure is double the level from a year ago.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 23, 2009 6:32 pm

The FDIC is entering into direct partnerships with buyers and retaining a long-term equity stake in the loan portfolios as it opens up to bidders one of the second-largest bulk sale of commercial property in its history. The winner is expected to be one of finance’s private equity titans. The sale is consisted of a portfolio of nonperforming loans from commercial real estate properties issued by failed lenders IndyMac, Corus and Franklin. The agency has been scrambling to raise some cash from a vast array of bank assets as the FDIC fund that insures bank deposits went red this year.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 17, 2009 2:30 pm

In a report by Reuters, Bank of Canada Governor Mark Carney said that about the U.S. real estate that: “It is going to be a difficult situation for a period of time but it is not going to be a shock to the system. And there’s a big difference between the two.”

Meanwhile, Wells Fargo Securities said in its 2010 outlook report that  the economy will rebound, but will take a couple of years to return to levels seen a few years ago.

“Housing and commercial real estate are central to the recovery. It has been complicated by the stimulus programs. The future will be determined by the fundamentals, it is not likely to improve until employment and income improve, ” said Mark Vitner, senior economist at Wells Fargo. “We expect a 20 percent rebound in 2010 and 2011,” he said.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 16, 2009 2:37 pm

Moody’s Investor Services, learning from lessons received 20 years ago, predicts in a report that U.S. life insurers will suffer a less due to commercial-mortgage losses compared to banks. The commercial real estate market last went through a crisis 20 years ago which resulted in major losses for the life insurers.

“Life insurers’ portfolios today demonstrate that they have learned from past missteps dealing with commercial real estate,” said Senior Vice President Jeffrey Berg. Right now, the sector has only moderate exposure to commercial loans and these loans were well-diversified across geographies and property types as well as these loans were conservatively underwritten and maturities were well-distributed.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 15, 2009 11:17 pm

The Federal Deposit Insurance Corp. revealed today a significant increase in budget to deal with banks’ escalating woes which is at its fastest pace since 1992. The FDIC will boost its budget by 56% from $1.3 billion this year to $2.5 billion in 2010. They said thay will aslo increase staff by 1643 to handle bank failures.

“It will ensure that we are prepared to handle an even larger number of bank failures next year, if that becomes necessary, and to provide regulatory oversight for an even larger number of troubled institutions,” FDIC Chairman Sheila Bair said in a statement.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

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By AZ Advisory Team, December 14, 2009 11:02 pm

Bridger Commercial Funding announced today that it will resume originating new commercial real estate loans on income-producing properties. Loans made under Bridger’s new program will be underwritten to eligibility standards for securitization under the Federal Reserve’s Term Asset-Backed Securities Loan Facility, or TALF. Separately, Bridger also announced that it has hired the personnel from Whitegate Advisors, a New York-based real estate capital markets specialist firm, in order to support its new CMBS origination activity.

Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.