Wednesday, January 30, 2013

Lower Rates Stoke Borrower Demand for CMBS Loans via NREIonline.com

The slow recovery in the CMBS market got a big boost in the second half of 2012 thanks to more competitive financing rates. The beleaguered financing niche is hoping that momentum will carry over into 2013.

U.S. CMBS issuance hit a post-crisis high of nearly $48.2 billion in 2012. That volume is still a fraction of the volume that occurred at the peak of the market in 2007 when U.S. issuance topped $228 billion. Yet the industry has made significant strides in rejuvenating a sector that virtually ground to a halt in 2008 when the financial crisis hit.

“I am very optimistic about the CMBS business in 2013. I think volumes will grow substantially. You will continue to see high-quality loans, and you will see more capital raised for the B-piece community,” says Anthony Orso, CEO of New York–based Cantor Commercial Real Estate (CCRE). The real estate finance company, an affiliate of Cantor Fitzgerald & Co., completed five securitizations that amounted to $3.1 billion in 2012 and originated a total of nearly $5 billion in 2012.

Read more...Lower Rates Stoke Borrower Demand for CMBS Loans via NREIonline.com

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