http://www.squarefeetblog.com/commercial-real-estate-blog/2009/11/16/ddr-issue-signals-slow-return-of-cmbs-market/ Commercial Real Estate Blog Sat, 06 Mar 2010 00:06:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.squarefeetblog.com/commercial-real-estate-blog/2009/11/16/ddr-issue-signals-slow-return-of-cmbs-market/comment-page-1/#comment-3419 Froggy Wed, 18 Nov 2009 06:34:07 +0000 http://www.squarefeetblog.com/?p=3583#comment-3419 It's a drop in the bucket. Well performing assets will never be shut out of the financing pipeline, but frankly there are not that many well performing assets out there. We were open to helping out some tenants last year with concessions, but now we are battening down the hatches. This problem is pervasive and growing and much in the same way that banks won't modify loans until you default, that is how it goes with tenancy. What started with a liquidity problem in CRE has rapidly evolved into profound fundamental weakness, and as you said, who is going to pony up cash (that in many cases is equal to the market value of the asset) in order to get a 60 LTV loan done? Who is riding to the rescue with mezz on these deals? Nobody, that's who. It's a drop in the bucket. Well performing assets will never be shut out of the financing pipeline, but frankly there are not that many well performing assets out there. We were open to helping out some tenants last year with concessions, but now we are battening down the hatches. This problem is pervasive and growing and much in the same way that banks won't modify loans until you default, that is how it goes with tenancy. What started with a liquidity problem in CRE has rapidly evolved into profound fundamental weakness, and as you said, who is going to pony up cash (that in many cases is equal to the market value of the asset) in order to get a 60 LTV loan done? Who is riding to the rescue with mezz on these deals? Nobody, that's who.

]]> http://www.squarefeetblog.com/commercial-real-estate-blog/2009/11/16/ddr-issue-signals-slow-return-of-cmbs-market/comment-page-1/#comment-3395 Joshua Mon, 16 Nov 2009 23:34:13 +0000 http://www.squarefeetblog.com/?p=3583#comment-3395 thats great news for a solid property portfolio with a solid owner and all investors are getting A rated paper. does absolutely zero for the issues were seeing with declining rent rolls or peak asset values. thats great news for a solid property portfolio with a solid owner and all investors are getting A rated paper. does absolutely zero for the issues were seeing with declining rent rolls or peak asset values.

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