CMBS COMEBACK

Every great beach trip has sandcastles, swimming, and ... mortgage-backed securities? No wonder NorthMarq's Bill Libercci arranged a $19M CMBS first mortgage for White Marlin Mall in Ocean City late least week. Goldman Sachs originated the mortgage, and Bill represented borrower Greenberg Gibbons (JVing with Prudential). Lenders usually avoid seasonal locations like Ocean City, he says, but strong anchors and Greenberg Gibbons' solid reputation convinced Goldman the 197k SF mall was worth it. CMBS underwriting has changed, Bill tells us. ?Lenders reinvented themselves. Back in '07, loans were too aggressive, but the recession made everyone update their internal processes.? Now, there's more due diligence and attention to legal protections. And the market's responding: He says JP Morgan sold a CMBS pool for $716.3M last week, the largest conduit deal of its kind in nearly two years (according to Reuters).
Tighter underwriting standards are only one factor fueling the CMBS surge. Bill says investors want direct access to CRE as an asset class, so they're buying REIT stocks and investing in mortgage-backed securities. ?Investors are starting to view real estate as an alternative to traditional fixed-rate assets like corporate bonds,? he says, adding that CRE-backed financial products can generate higher returns than traditional investments.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Baltimore Newsletters
Related Stories

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Foundry Robotics Leaves San Francisco For New East Bay HQ

Tenant Rep Firm Expands To Philly, Hires Industry Veteran

Data Centers Lose The Top Spot, San Francisco Jumps 40 Places: 9 Takeaways From ULI's 2027 Outlook

Cushman & Wakefield, NYC Added To Suit Alleging $250K Agency Lease Shakedown

Denver Public Schools' $11M Centennial Hall Purchase Marks Rare Land Sale For ULC

Brandywine Plans To Sell $200M Worth Of Properties In 2027

Pennsylvania Reveals Draft Map Of Areas To Benefit From Opportunity Zones 2.0

Cresa Taps Nathan Knowles As Atlanta Market Leader

Developer Of $3.8B Atlanta Project Discloses $19M Accounting Error

Inter Miami Stadium Subcontractors Sue Over Millions In Unpaid Work

Meet The Women Pushing Boundaries In UK Development