Archive for the ‘Industry Commentary’ Category

Update: Atlantic Station Under Contract

Sunday, August 29th, 2010

We recently reported that Eastdil Secured was marketing Towne Center at Atlantic Station on behalf of its owner, AIG Global Real Estate. This week, North American Properties was selected as the winning bidder for the property and now has the deal under a formal sales agreement. North American Properties has been ... More

Have you used Blytic.com?

Tuesday, August 24th, 2010

We recently stumbled across an interesting website, Blytic.com. It is an interesting concept, if you're not familiar with the site. Blytic is a privately funded Boston area startup offering a novel new service for accessing/managing real-time time-series data as well as for analysis authoring and publishing. First, Blytic acts as an real-time ... More

MIT finds, “Monkeys hate booking losses”

Wednesday, July 28th, 2010

The topic of cap rates and treasury spreads morphed into a discussion on the value of technical indicators. From there, it shifted to investor psychology. Marketwi.se's last post, "We Are All Just Monkey's" was a combination of pricing, technical indicators, market efficiency (or lack thereof) and overall investor psychology. One of ... More

Dr. Geltner: CRE Prices will return…. when?

Wednesday, July 28th, 2010

In his most recent Professor's Comment's newsletter, Dr. David Geltner included an intriguing projection: "the CPPI may not regain its 2007 peak value of 192 again until the decade of the 2030s or beyond." Note the graph below; it assumes the in approximate long-run equilibrium in 2000, and that nominal property ... More

Cap rates, technical indicators and more…

Monday, July 26th, 2010

While technical indicators are used frequently to analyze stock investments, it is a technique seldom (if ever) used in commercial real estate. When Marketwi.se used it to analyze Cap Rate to Treasury spreads, it turned the conversation on its ear. We were fascinated by this approach and include their chart below ... More

Wachovia Shops Apartment Loans

Saturday, July 24th, 2010

REAlert.com reports that Wachovia has engaged Eastdil Secured to shop a couple of defaulted mortgages secured by two stabilized apartment complexes in Atlanta. One of the loans, with an unpaid balance of $27.6 million, is secured by the 242-unit Icon apartments, while the other, with a principal balance of ... More

Must Read: PIMCO’s CRE Project

Monday, July 19th, 2010

One of the most interesting research articles we've read this month is the PIMCO U.S. Commercial Real Estate Project. As the Wall Street Journal just reported back-to-back months of Moody's CPPI increases, PIMCO's view is that the index is virtually meaningless. National price indices such as the Moody’s Commercial Property ... More

Cap Rate to 10-year Treasury Spreads

Sunday, July 18th, 2010

A recent post titled "CRE Cap Rates vs. 10 Year Treasury" over at Marketwi.se reminded us of a Cornerstone Advisers research report titled "Cap Rates and Real Estate Cycles". In this report, Cornerstone published a graph which tracked NCREIF Cap Rates v.s 10-Year T-Bill yields since 1983. The NCREIF may ... More

Korpacz Cap Rate Trends – Q2 2010

Sunday, July 11th, 2010

PricewaterhouseCoopers recently released their Q2 2010 Korpacz Real Estate Investor Survey results. Susan Smith, the editor-in-chief and a director in PwC's real estate practice noted: 'While most investors sense that the worst is over in terms of market deterioration, supply greatly outweighs demand across all property sectors keeping overall vacancy ... More

Product Review: CMBS.com

Wednesday, July 7th, 2010

One website we recently stumbled upon is CMBS.com. This website is an invaluable resource for CRE sales and mortgage brokers, as well as pure principal investors. Their CMBS Leads product allows users to search for securitized loans which are maturing, watch listed, specially serviced, in foreclosure or REO. If you ... More