Tuesday, 5 February 2013

Commercial real estate loan prices up in 2012, study says

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Prices for CRE loan sold through DebtX grew strongly in 2012, but closed the year flat. 
Prices for commercial real estate loans (CRE) sold through DebtX grew in 2012, but closed the year flat, according to the Boston-based marketplace for loans.

Last year, prices for impaired performing loans rose 9.1 percentage points and prices for non-=performing loans rose 11.5 percentage points, making 2012 a very strong year in the CRE secondary loan market, DebtX said.

For December, DebtX Data reported the estimated price of whole loans securing the commercial mortgage-backed securities (CMBS) universe fell to 89 percent, off from 89.4 percent on November 30. Loan values closed the year at 86.1 percent, the survey said.

The weighted average monthly price of impaired performing loans sold through DebtX’s marketplace remained unchanged at 80.5 percent in December. Prices were 71.3 percent in December 2011.

Among non-performing loan prices, the weighted average monthly price was 52.6 percent in December, up from 52.2 percent in November 2012. Prices were 41.1 percent in December 2011.

The company’s Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 108.2 in December, down from 108.4 in November. The Index was 94.9 in December 2011.

For the original post visit: http://www.bizjournals.com/boston/real_estate/2013/02/commercial-real-estate-loan-prices-up.html

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