Life Companies Take a Bite
A.G. Seifert, Managing Director, Cornerstone Real Estate Advisors
Life companies are expected to be extremely active once again in 2012, but A.G. Seifert says Cornerstone’s looking for something meatier: The Double Bacon Lettuce and Tomato sandwich. What does that mean for the year ahead? Take a bite and find out!
Agencies Move to Rationalize Multifamily Lending Capacity
Faron Thompson, Managing Director, Real Estate Investment Banking
The GSEs securitized a great deal of their new loan production in 2011, and that trend shows no sign of stopping in 2012. Jones Lang LaSalle’s Faron Thompson delves into the agencies plans to reduce their debt lending capacity from 84 percent of the multifamily product to closer to 50 percent as a broader debt market recovery takes hold in 2012.
Foreign Frame of Mind: Favorable on U.S.
Steve Collins, Managing Director, International Capital Group, Jones Lang LaSalle
All eyes are on the Eurozone debt concerns and a potential effect on U.S. lending. Jones Lang LaSalle’s Steve Collins describes how the sovereign debt crisis has increased foreign interest in placing money in the United States as a strong place to put capital.
Biting at the Core
James Stolpestad , CEO, Allianz Real Estate America
Allianz’s Jamie Stolpestad discusses what sectors of the market they’ll be focusing on in the year ahead and what strategies they’ll employ to continue their practice of lending more than $1.2 billion in both debt and equity. He also discusses what cities may see more attention—outside of the prime coastal markets.
Out-betting the Bond Market?
Mike Melody, Co-Head and Executive Vice President, Real Estate Investment Banking, Jones Lang LaSalle.
In a recent Penton Media Research/Jones Lang LaSalle survey, 57 percent of borrowers predicted an uptick in interest rates in 2012, while 78 percent of respondents predicted interest rates would rise in 2011. Jones Lang LaSalle’s Mike Melody also expects rates to remain low during 2012 with generally favorable commercial loan pricing. He describes how the market is at an absolute 25-year low for fixed rate loans on the best, low leveraged, quality assets. Borrowers with core, well-located properties will have a lot of competition and bidding wars from lenders willing to be aggressive on their pricing even though absolute rates are low given the spreads to those benchmark interest rates are still extremely attractive.
Borrowers’ and Lenders’ Expectations in 2012
Wesley Boatwright, Managing Director, REIB, Jones Lang LaSalle
Optimism reigns at the 2012 Mortgage Bankers Association conference. With interest rates expected to remain low through 2012 and a wider range of lenders coming back into the market, Jones Lang LaSalle Managing Director Wes Boatwright sees better deal flows and attractive pricing for borrowers.
Going up the Capital Stack
Frank Linneen, Partner and SVP, Quadrant Real Estate Advisors
Nearly 34 percent of lenders surveyed by Jones Lang LaSalle are expected put out more capital in 2012. Quadrant Real Estate Advisors is one of them, with plans to double its loan production in the next 12 months, according to Frank Linneen. He anticipates a slight shift in focus to smaller markets with less competition, in pursuit of stronger yields.
Practical Gaines: Lenders Choose Best Investments
Kelly Gaines, Managing Director, Real Estate Investment Banking, Jones Lang LaSalle
In a recent survey, lenders chose which property types offered the best investment, selecting multifamily first at 76% then medical office at 33%. Jones Lang LaSalle’s Kelly Gaines sees a much bigger expanse in lender demand as it is hard for lenders to get multifamily and they’re branching out further to office and true grocery-anchored retail centers. Gaines see lenders moving up the risk scale to get the yield then need in 2012.
Hotel Lending On an Upswing
Mathew Comfort, EVP, REIB, JLLH
Since the end of 2011, there’s been a surge of lenders re-entering the hotel lending market, including CMBS. Jones Lang LaSalle’s Matt Comfort discusses why some lenders have been leery about this asset class in the past and what’s changed to make them feel more comfortable. He also weighs in on what we can expect in the year ahead.