CRE Loan Values Continue Upward Trend
Carl Gaines May 31, 2012, 9:30 a.m.
Data from DebtX shows that aggregate commercial real estate values that the loan sale advisor priced and that collateralize CMBS increased over the month of April, continuing a several month trend.
These loan values rose from 87.3 percent as of March 31, 2012 to 88.1 percent as of April 30, 2012. At the end of this past February, CMBS-collateralized loans were at 86.9 percent. Meanwhile, looking back a full year from the most recent April data to the figure as of April 30, 2011, they stood at 80.9 percent.
“Commercial real estate loan prices increased for a fourth consecutive month in April and are up strongly from a year ago,” DebtX CEO Kingsley Greenland said. “Improving CRE fundamentals, along with a decline in Treasuries and a decrease in credit spreads, drove loan prices higher in April.”
An investor flight to safety, caused by Spain’s growing banking crisis and concerns about Europe’s general financial health, has helped to push Treasury yields down.
For this most recent data, Debt X priced 55,803 commercial real estate loans. They had an aggregate balance of $767.6 billion.