No Raise Expected for Apartment Cap Rates

Most Think Multifamily Cap Rates Will Stay Put
The movers and shakers in multifamily feel very positive about the overall forecast for the industry. We are not so sure. We believe there is a subtle softening in the market as more product is being exclusively listed. Also with European banks under even more pressure to capitalize positions. 


We believe there will be a greater number of multifamily assets and debt coming on the market for 2012. The new year is shaping out to be quite the year for multifamily, stay tuned with Latitude 38 Group.

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Videos:


1. US Multifamily Cap Rates: Keep On Keeping On


2. US The Battle for Multifamily Space - Fall 2011


3. US The Rent versus Own Conundrum

SBA Lending Poised for a Record Year

One piece of good news inside the endless assortment of negative data. This week Wells Fargo & Co. announced it extended $1 billion in loans back by the Small Business Administration over the past 11 months. They reported that those loans reached some 2,600 businesses.

China to designate RMB clearing bank in Singapore

The People's Bank of China is looking to Singapore to internationalize the Renminbi with the goal of facilitating trade between China and southeast Asian countries.

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The End of Extend and Pretend?

If this article is on track in stating the market has bottomed out and banks will tend to release distressed loans and assets, will this finally allow our stalled industry to get back into business?

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SEC Probe Examines Bank-Loan Practices

The SEC claims to be examining the bank practices of “extend and pretend” and “amend and pretend”….well about time. It is shocking that government oversight has played a blind eye for so long. Statements from banks saying that “loan accounting is and has been appropriate” is mind boggling when you see what is plainly evident.

We and many other investors and have tried in vain to work with banks and special servicers to help restructure and buy loans with some success but mostly frustration. The financial system is gleaning massive fees by delaying and stifling the Commercial Real Estate industry.

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FDIC Chairman Bair Defends Extend and Pretend

With regulations blatantly ignoring current rules required by the banking sector and free enterprise with CRE continuing to be absolutely stifled, the question that I keep thinking as the average Joe broker is – “Why are we tolerating this? Why is there not an uproar?” Sheila Bair is doing nothing but blowing off excuses...read full article

Split on Standards Set to Widen

Financial Times reports that new proposals on accounting standards could loosen up the tight grip banks have on inventory. This appears to be very positive. Obviously pressure is not coming from the Real Estate Lobby nor from banks nor FDIC. The real pressure could come from equity markets who are having difficulty analyzing the real value of banks without the "mark to market" accounting.
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