Debt Matters |  Interest Rate Updates, Projections & Lending News | February 2015
     February 2015    
 

Jason Hochman

Vice President
Debt & Structured Finance

T: +1 305 381 6439

jason.hochman@cbre.com

Website

Resume

 

Steven Okon

Senior Financial Analyst

T: +1 561 393 1618

steven.okon@cbre.com

Website

 

Heidi Peckhaus
Client Services Coordinator

T: +1 561 393 1670

heidi.peckhaus@cbre.com  

Website

 

________________________

 

Local Offices:

 

CBRE Capital Markets
DSF |
Miami Office

777 Brickell Ave., Suite 900

Miami, Florida 33131
T +1 305 381 6439
F +1 305 381 6462

 

CBRE Capital Markets
DSF | B
oca Raton Office

5100 Town Center, Suite 600

Boca Raton, Florida 33486
T +1 561 393 1614
F +1 561 393 8122


________________________

 

CBRE, Inc.

Licensed Real Estate Broker

Market Summary


Interest Rate Movement – the continuing debate about when the Federal Reserve may raise interest rates has continued in 2015.  Last month the Federal Reserve voted not to raise interest rates, but the discussions leading to that decisions showed some levels of trepidation.  The January meeting minutes, which were released this past Wednesday, showed concern by a few Open Market Committee members regarding when to start normalizing monetary policy.  Ultimately, the majority’s sentiment indicated a tightening is not expected anytime soon.

 

That said, the 10-year treasury rate, which was hovering near 2.25% for much of December, dipped to a twenty month low below 1.70% in January and early February, only to rise again to 2.12% where it sits today.  We anticipate stability in the near future, but as seen in the past, economic and political news, both foreign and domestic, can send rates on an upward trend at any time.
 

Interest Rate Analysis

Key Rates

 

Prime 5-Yr T 10-Yr T

1-M Libor

DJ Avg.
02/20/15 3.25% 1.60% 2.12%

0.17%

18,140 
01/20/15  3.25%

1.29%

1.79%

0.17%

17,515
Year Ago 3.25% 1.54% 2.75% 0.16% 16,133

 

Interest Rate Projections*

 

1Q 2015  2Q 2015  3Q 2015

4Q 2015

1Q 2016

2Q 2016
10-Y Treasury Avg. 2.01% 2.22% 2.44%

2.64%

2.84% 3.02%
1-M Libor Avg.  0.28%

 0.40%

 0.64%

 0.91%

1.21%

1.53%
 

 

Average 10-Year Treasury Chart 

 

 

xxx

 
                                                                                                                                *source: Bloomberg News Monthly Survey, February 12, 2015
 
 Market News
 
::

New Late-Pays Hit Post-Recession Low

globest.com -- New delinquencies of CMBS hit a post-recession monthly low in January, Fitch Ratings says. That being said, the ratings agency has also flagged a possible pitfall in the higher levels of credit enhancement for new CMBS as deal metrics decline... Click here to read more

 

::

CMBS Market on the Upswing after Slow 2015 Start

nreionline.com -- The U.S. CMBS market is gaining momentum in February, after a slow start in the first month of the year. January proved a disappointing month for the CMBS sector, with $3.5 billion in new issuance, according to Commercial Mortgage Alert, an industry publication... Click here to read more

 

 
 Featured Transaction

Oakland Park Industrial Center
Our team arranged the sale of Oakland Park Industrial Center, an industrial portfolio consisting of seven multi-bay warehouses totaling 145,260 square feet, located in Oakland Park, FL. OPIC, LLC, acquired the portfolio from GMACK, LLC, for $7,777,040. CBRE represented the seller in the transaction. The financing was a non-recourse, CMBS loan in the amount of $6,100,000 (78.6% of the purchase price) with a 10-year term at a low interest rate.

 

“We worked to secure a lender who provided both the best terms and the greatest certainty of closing.  Our client worked diligently with us and the lender during a quick due diligence period to close on time.” -- Jason Hochman


 

Click here for the press release


Recently closed deals
 
Deal Asset Type SF Financing

Loan Type

Press Release

Flagler West Corporate Park

Miami, Florida

Office 126,004 $20,750,000 CMBS/Mezzanine
Metrocentre Corporate Center
West Palm Beach, Florida
Office 105,159 SF $7,000,000 Bridge Loan

Intl Park & Blue Lake Center

Birmingham, Alabama

Office 377,921 $41,190,000 CMBS

Oakland Park Industrial Center

Oakland Park, Florida

Industrial 145,260 $6,100,000 CMBS

Congress Office Park

Delray Beach, Florida

Office 53,843 $5,500,000 Life Company

Jupiter Medical & Tech Park

Jupiter, Florida

Medical/Office 185,000 $27,000,000 Bridge Loan
AT&T Regional Training Center
Fort Lauderdale, Florida 
Flex/Industrial 79,412 $4,900,000

Bridge Loan 

Brandywine Centre I
West Palm Beach, Florida 
Office 

69,715 

$5,039,000

Bridge Loan

Cascade Apartments
Palm Beach Shores, Florida 
Multi-Housing 11 Units $650,000  Bank/Permanent
Wells Fargo
Delray Beach, Florida
Office 15,890 $1,775,000

Bank/Owner-Occupied 

 
 
 
Financial Solutions

 

Our team provides “institutional” quality service to South Florida’s private real estate investors.  Clients enjoy our experience, lender contacts and ingenuity in creating solutions for their financing needs.  We place our clients first and provide personalized service to ensure they get the best loan terms for their investments. 

 

If you are evaluating an acquisition, have a loan maturing over the next year or can pre-pay an existing loan without much penalty, feel free to contact us to evaluate the various opportunities available including those mentioned below.

 

Property Types

Loan Types

Features

• Multi-Family/Apts.

• Office

• Industrial

• Retail

• Hospitality/Hotels

• Permanent

  - Life companies

  - Conduit (CMBS)

  - Banks

• Bridge Loans

• Non-recourse (no guaranties)

• Flexible Prepayment

• Fixed Low Rates

• Amortization Options

  including interest only

• Mezzanine Loans

• Construction/ 
  Development

.

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