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Marcus & Millichap Capital Corporation - Capital Alert

 

October 10, 2008

Economic Commentary

Click here for past issues
Click here for our loan sizer

10-10-08 - Uncertainty reigns as the stock market suffered its biggest decline in history and financial markets worldwide struggle with the declining economy. Wells Fargo elbowed Citigroup out for the purchase of Wachovia. The Federal Reserve cut its rate by 50 basis points to 1.5 percent while Treasuries, libor, swaps and mortgage-interest rates all moved up significantly. Banks continue to have liquidity concerns and many lenders have moved out of the market until some sort of stability returns. There is still capital available for well-situated properties with attractive rates for swap based 3- and 5-year deals.

Multi-Family Loan Programs > $3 Million

 

Agency Lenders

Term

Leverage Max.

Interest Rates

5 Yr.

80%

6.21% to 6.36%

7 Yr.

80%

6.30% to 6.54%

10 Yr.

80%

6.40% to 6.58%

15 Yr.

80%

6.80% to 7.25%

Portfolio Lenders*

Leverage Max.

Interest Rates

75%

6.25% to 6.60%

75%

6.45% to 6.75%

75%

6.59% to 6.80%

75%

6.80% to 7.25% 

*Rates based on Act/360

Multi-Family Loan Programs < $3 Million

Fixed Rate

Agency Lenders

Term

Leverage Max.

Interest Rates

3 Yr.

80%

6.05% to 6.40%

5 Yr.

80%

6.26% to 6.56%

7 Yr.

80%

6.37% to 6.67%

10 Yr.

80%

6.35% to 6.65% 

15 Yr.

80%

6.98% to 7.35%

Portfolio Lenders* Portfolio Lenders*

Leverage Max.

Interest Rates

75%

6.00% to 6.25%

75%

6.25% to 6.60%

75%

6.45% to 6.75%

75%

6.59% to 6.80% 

75%

6.80% to 7.25% 

*Rates based on Act/360

Commercial Loan Programs

Fixed Rate

Portfolio Lenders*

Term

Leverage Max.

Interest Rates

5 Yr.

75%

6.35% to 6.60%

7 Yr.

75%

6.49% to 6.75%

10 Yr.

75%

6.59% to 6.80%

15 Yr.

75%

6.59% to 6.80%

 

Bridge Floating

Leverage Max.

Spread Over Libor

Stabilized

75%

225 to 300

Re-Position

80%

275 to 350

Index Rate as of 7/25/2008

 

 

5-Year Treasury:

2.76%

10-Year Treasury:

3.87%

5-Year Swap:

3.95%

10-Year Swap:

4.42%

Prime: Prime:

4.50%

90-Day LIBOR:

4.82%

 

 

 

 

 

 

 

 

(*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)

Recent Transactions

Owensmouth 
Multi-Family - Garden Apts.

Canoga Park, CA
 $2,975,000
6.05% Fixed Rate
30-yr. Term/30-yr. Amortization

31st. Street Crossing 
Retail  Center - Neighborhood
Temple, AZ
$2,900,000
5-yr. swap/233 bps
5-yr. Term/30-yr. Amortization

Kentwood Estates 
Manufactured Home Community
Chico, CA
$1,500,000
6.33% Fixed Rate
10-yr. Term/30-yr. Amortization

Joe's Crab Shack 
STNL- Restaurant
Sanford, FL
$1,577,269
6-mos. libor/250 bps
10-yr. Term/30-yr. Amortization

For more information, contact: Michael S Harris
7650 Courtney Campbell Cswy | Suite 920
Tampa, FL 33607
Office: (813) 387-4759
mharris3@marcusmillichap.com

Terms, rates and conditions subject to change.

This chart is for information purposes only.
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The representations contained on this internet page are provided based on information deemed reliable. However, the same has not been independently verified. Principals are advised to conduct a thorough due diligence for any potential transaction. Marcus & Millichap Real Estate Investment Services name and logo are used herein for information purposes only.