Debt financing has returned to the commercial real estate markets, deleveraging will likely continue over the next years, and the stream of distressed loans will continue to flow into the market, according to speakers on financing panels at the 2012 ULI Spring Meeting held last week.
At a session titled “Full Court Press on Commercial/Apartment Debt: A Competitive Financing Debate,” Kevin Pivnick, managing director at Deutsche Bank, said that the CMBS industry is experiencing a shortage of demand, not supply. The CMBS market is very healthy today, said Pivnick. Pivnick reported that there is currently robust investor demand for all CMBS bond issuances.
He said, however, that CMBS lenders are still wishing for greater levels of demand from borrowers. He added that 80 percent of the loans his company has seen last year are refinancings rather than acquisitions, and that lenders would like there to be a greater amount of acquisition activities in the CRE space.
Read more...SPECIAL REPORT: Financing Availability, Low Interest Rates Drive CRE Markets via MHNonline.com
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