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Commercial Real Estate Monthly Recap – Jan. 2019

Los Angeles – January 31, 2019 – The Mortgage Bankers Association (MBA) just released the results of their 2019 Commercial Real Estate Finance (CREF) Outlook Survey, which presents information on what leaders of top commercial and multifamily origination firms expect to see in the year ahead. More than half (55 percent) of the top commercial/multifamily firms expect origination to increase in 2019, with one in eight (13 percent) expecting an overall increase of 5 percent or more across the entire market. Lenders remain eager to make loans: 100 percent of originators reported that in 2018 lenders had a “strong” or “very strong” appetite to make new loans and 100 percent expect lenders’ 2019 appetite to be “strong” or “very strong”.

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Alice EricsonCommercial Real Estate Monthly Recap – Jan. 2019
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Commercial Real Estate Monthly Recap – Dec. 2018

Los Angeles – December 31, 2018 – Real estate fundamentals are generally healthy with vacancy rates across the four major property types below their historical average over the past 10 years, combined with above average rent growth. Multifamily and industrial property types have seen the most investment activity with sales in the marketplace over double their historical average. Secular changes have benefited the industrial sector with demand intensified from the growth of e-commerce. Given currently low vacancy rates and restrained new construction, CBRE projects an increase in net asking rents. Top of mind for many industrial stakeholders in the U.S. is the contentious international trade environment.

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Alice EricsonCommercial Real Estate Monthly Recap – Dec. 2018
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Commercial Real Estate Monthly Recap – Nov. 2018

Los Angeles – November 30, 2018 – Corporate bond spreads continued to widen with “A” rated coporate bonds increasing by 13 basis points in the month of November on top of an 11 basis point increase in the month of October. “AA-” rated CMBS bond spreads increased 10-12 basis points over the past month. Spreads for commercial mortgage loans (CML) tend to move more slowly and in a tighter range as compared to corporate bonds. Although not reflected at November month-end, CorAmerica’s estimate of CML spreads have been increased by 10 basis points commensurate with the current relative value to alternative investments. The change in CML spreads has been reflected in the CorAmerica weekly pricing matrix as of December 7th.

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Alice EricsonCommercial Real Estate Monthly Recap – Nov. 2018
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Nassau Re Announces New Capital for Growth and Rebranding of Core Subsidiaries

Hartford, CT, Nov. 27, 2018 – Nassau Re has secured an additional $200 million of committed equity capital from its existing sponsor, Golden Gate Capital, to support its accelerated growth plans for the company’s fixed annuity and life insurance businesses.

Nassau Re recently initiated a rebranding of its core insurance subsidiaries into a single Nassau brand. With a strengthened and unified brand in the marketplace, Nassau Re is better positioned to expand its suite of insurance products and execute on increased sales in partnership with select independent marketing organizations, as well as its direct-to-consumer online business.

“The return to growth, beginning with the rebranding of our core insurance companies is an exciting new chapter for Nassau Re and Phoenix. Over this past year, we have successfully completed the transformation and integration of our insurance companies while laying the foundation for stable, long-term growth. Looking ahead, we will continue providing our suite of competitive products while working closely with our distribution partners to develop new and innovative insurance products to meet our clients’ needs,” said Phillip J. Gass, Chief Executive Officer of Nassau Re. “The additional growth capital we have successfully raised will ensure seamless execution of our exciting growth initiatives for 2019 and beyond.”

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Alice EricsonNassau Re Announces New Capital for Growth and Rebranding of Core Subsidiaries
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Commercial Real Estate Monthly Recap – Oct. 2018

Los Angeles – October 31, 2018 – Notable monthly movements in the market include an approximate .10%-.15% widening of spreads for agency loans (~.20% YOY) as well as “A” and “BBB” rated grade corporate bonds (~.22% YOY). The movement in agency spreads is likely due to heightened levels of the supply of bonds in the marketplace, both in Freddie K’s and DUS, while buyers are continuing to be more selective. Benchmark rates continued to widen with 1-month LIBOR up .07% (+.99% YOY), 10-year treausry up .08% (+.68% YOY), 30-year treasury up .16% (+.33% YOY). Upward movement in benchmark rates has been more pronounced over the last 12 months at the shorter end of the curve.

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Alice EricsonCommercial Real Estate Monthly Recap – Oct. 2018
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