California Needs $65B Just to Maintain Infrastructure

Signs of our brittle world in California are becoming more obvious with $65B required to just maintain what we have……and what we have is definitely not doing its job for its citizens. One very sad recent decision was the closure of many of our wonderful state parks. Our quality of life is set to be compromised in a lot of ways.


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$580B in Commercial Debt maturing in 2012 - Transaction momentum?

How will the maturities wave effect business in 2012?


Of the $580B in maturing debt in 2012, $55B is securitized, of that 85% matures in the next six months. Surely this will create transaction momentum that we have all been waiting for the last four years. The Europeans are also very likely to release assets and debt in the US to shore up their portfolios. Whatever the case is, we will know soon.

"About $55 billion of property loans sold as securities come due in 2012, with $19 billion of those originated in 2007, S&P (Standards & Poor's) analyst Larry Kay reports".

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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

What to do with $1.7 Trillion of Maturing Debt

Very interesting article focusing on what it’s going to take to deal with the maturing commercial mortgage debt: some $1.7 trillion between 2010 and 2015. The topic of discussion is also interestingly titled “Real Estate Markets 2011: What Factors Will Influence Your Decisions?” Stating that the availability of debt will be the biggest influence.

Looking from the trenches, it appears lenders are willing to extend with more time and more favorable loan terms. However, debt reduction and cram downs are becoming less common. Eventually there will be a need to "take the stuff off the books" but who knows when? It can't be too far away.

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Fortress Takes Over San Francisco's Villas Parkmerced

Fortress Takes Over San Francisco's Villas Parkmerced Fortress Investment Group has taken over the owership entity of San Francisco's Villas Parkmerced apartment complex, after acquiring the mezzanine debt against the 3,221-unit property...read more.