CMBS: Feeding the Elephant in the Room
February 9, 2012 — At the height of the U.S. property boom from 2005 to 2007, the allure of Commercial Mortgage-Backed Securities (CMBS) seemed without limit. During that 3-year period, more than 30,000 loans were pooled into $602 billion of new CMBS bonds. Then came the reckoning now recorded as the Great Recession when the CMBS industry collapsed, issuing a paltry $28 billion in three combined years from 2008 to 2010. In 2011, the fragile recovery in commercial real estate included $32.7 billion in CMBS.
Commercial Real Estate: Where’s The Payoff?
February 9, 2012 — Every economic contraction teaches hard lessons, and the Great Recession dealt punishing blows to the commercial real estate sector. Borrowers, lenders and investors bring different pain points and business agendas to the table, but they share a common focus: Will this deal deliver the expected payoff?
Tale of Two Markets
August 16, 2011 — By all indicators, the U.S. economy will continue riding a “recession-recovery roller coaster” into 2012. The banking industry’s woes are well known, and of course, the recovery requires a solvent and competitive banking sector – we all remember TARP. Less publicized is the distinct impact the lending practices of the banking industry have made on the commercial real estate segment, in particular as it relates to investment by institutional players and REITs
Commercial Real Estate’s “New Normal”: No Wiggle Room
August 4, 2011 — Proper valuation and due diligence is essential to a successful investment strategy. We thought it would be helpful to share our insights on how best to mitigate some of the risks associated with making bank portfolio acquisitions in a rapidly changing market – and perhaps provoke some thought and discussion along the way. That is why Summer Street Advisors is sponsoring a series of articles examining various aspects of underwriting and valuation.
CMBS 2.0: Is It Safe To Get Back In
June 16, 2011 — Proper valuation and due diligence is essential to a successful investment strategy. We thought it would be helpful to share our insights on how best to mitigate some of the risks associated with making bank portfolio acquisitions in a rapidly changing market – and perhaps provoke some thought and discussion along the way. That is why Summer Street Advisors is sponsoring a series of articles examining various aspects of underwriting and valuation.