Commercial Real Estate Loan Prices Rise in October

In October, DebtX priced 52,806 CRE loans with a $628.4 billion aggregate principal balance. These loans, which collateralize 647 US CMBS trusts, each received a DXMark(R), a price based on 10 years of data from billions of dollars in loan sales executed by DebtX, the largest marketplace for loan sales. Access to individual DXMark prices is available through the BLOOMBERG PROFESSIONAL(R) Service. Type DXMKfor more information.

DebtX's CMBS loan pricing analysis is part of DXMarket Datasm, a subscription service that provides loan buyers with insight about transactions at www.debtx.com . DXMarket Datasm is available to registered DebtX buyers and includes six components: Non-Performing Loan Sale Prices, Bank Watch, Secondary Loan Market Commentary, CMBS Loan Collateral Prices, Secondary Loan Market Liquidity and CRE Capital Markets Observations. http://www.marketwatch.com/

Over the last 12 months high quality assets have been in strong demand;drugs store such “Walgreens” being the perfect example. As a result of this strong demand, cap rates for high quality assets have been driven down to the low/mid 6% range. Investors are now looking for higher returns. Washington D.C., New York, Boston, Chicago, Dallas, L.A and San Francisco are all popular locations for acquiring net leased assets and urban infill locations with good demographics are highly sought after. www.calkain.com

Wednesday, July 20, 2011

WestLB AG Seeks to Sell Loan Portfolio

NNN Lease Market News

Troubled German bank WestLB AG is marketing a portfolio of loans backed by a diverse collection of hotels and resorts that include a ski lodge in Utah, a boutique hotel in lower Manhattan and a beach resort in Miami, according to the offering memorandum.WestLB was among a number of European banks that began lending aggressively to U.S. developers during the final years of the property market boom.

John Fox, a hotel analyst at Colliers PKF Consulting, said WestLB's lending may seem more risky because, unlike some foreign lenders, the German bank provided financing for more speculative resort projects
"Some of the overseas banks got into markets they didn't know as well as the urban markets," he said.
A spokeswoman for WestLB declined to comment. A hotel broker at Jones Lang LaSalle, the firm running the sale, also declined to comment.

http://online.wsj.com/article/