The capital sources forecast calls for mainly clear skies: the aggregate volume of DFW commercial loans in sp ecial servicing decreased by 7% to 8% over the last four months. The outlook: the Wall Street players are back and quoting long-term fixed-rate debt.
|Last fall, we snapped Metropolitan Capital Advisors senior director Sunny Sajnani who, as our weatherman, tells us optimism reigns (or rains, we suppose). As new capital sources are rapidly becoming available, real estate borrowers and investors are coming up with creative structures to recapitalize their properties, he tells us. Sunny?s best news: MCA's transaction volume doubled over the past six months. He's seeing many transactions in the Metroplex and nationwide move from the distressed category in special servicing to performing assets. He feels this is the result of the resurgence of the CMBS conduit market.|
Most of MCA's contacts in the last CMBS run have popped up at new shops quoting new CMBS 2.0 loans. The underwriting for these is more conservative as there are many factors that influence the CMBS 2.0 market, such as widening spreads, upward pressure on interests rates, and the relationships between the B-piece buyers and the new CMBS players, he says. The Trepp data is encouraging because it solidifies what we've been experiencing here at MCA over the past several months, he says. New CRE transactions (both acquisitions and some development) are getting done and the North Texas/DFW economy continues to improve. Hopefully going forward, we'll see the loan count and loan volume in special servicing decrease further, Sunny says.
|He tells us he returned from the ICSC RECon show rejuvenated. It went from being a job fair last year back to an actual dealmaking convention with a sense that this year's meetings were more fruitful than last and there's capital in the market to get the deals done, he says.|