"America's Premier
Self Storage Brokers"
July 2007
1-800-55-STORE
www.SelfStorage.com
Argus Sales Property Pick New Listings Argus News Financing Focus Vendor View Industry Insights Upcoming Events
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"America's Premier July 2007 |
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1-800-55-STORE www.SelfStorage.com |
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Argus Sales Property Pick New Listings Argus News Financing Focus Vendor View Industry Insights Upcoming Events |
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Sept. 6-8, 2007 Stop by booth #814 to speak with an Argus Broker Affiliate and learn more about our nationwide property listings. You can also visit with a representative from SelfStorage.com, the Internet's premier self storage website, to learn how to get the most out of your online marketing dollars!
Click Here
for the conference schedule and
registration info |
We offer a low cost solution to your online advertising
needs. |
To view information on all of our nationwide self storage listings Click Here Stanhope, NJ
For more
information on this opportunity, by
Steve Clifford The CMBS market continues to toil along in uncertainty as buyers of CMBS paper react to negative ratings provided by Moody’s, S&P and Fitch. In conjunction with the affect of major fallout due to sub-prime woes (both current and expected) liquidity in the CMBS market appears to be drying up. What this all means for the borrower is that if you’ve closed on a conduit loan in the last two years, congratulations! You’ve benefited from historically low rates, interest only for the term of the loan options, looser underwriting standards which allowed for lower debt service coverage and higher loan proceeds based upon pro forma numbers. If you are currently closing on a conduit loan, buckle up and hold on for the ride. CMBS lenders are sitting on mounds of applied for and committed loans which they have priced to the borrower according to their expectations of their packaging the transaction and selling in secondary market. The market however is in severe flux. Because of recent downgrades and the position of several B-Piece buyers relative to their exposure in the sub prime market, less capital will be available in the CMBS market and that capital is going to be looking for a higher return (i.e. greater spreads). Spreads are changing daily and many CMBS lenders are unable to deliver on their pricing based upon the prices their buyers are willing to pay. It is not uncommon for spreads on applied for deals to be widened by 10 to 20 basis points. Unless our CMBS lenders are in the business of losing money, they can only price to where the market is. Given that the market is changing on a daily basis, many would contend that pricing and loan structure is not a certainty until the money is out the door and in the borrower’s hands. Despite the chaos of the market, if you are currently looking for permanent loan options, fear not as the commercial real estate industry remains healthy. Many people believe that the current CMBS market’s shake up is a long time in coming. The underwriting of real estate by all accounts was not necessarily sound relative to the risk involved. As the conduit market adjusts itself to a fair market, relative to risk and return, we can expect that fluctuations will occur. It is important to manage our borrower’s expectations throughout the process. Understanding that potential adjustments in pricing and structure may occur will be a fact of life for the near future in dealing with the conduits. Relative to the self storage industry, recently quoted full leverage (80% Loan-to-Value) transactions have been priced around 145 basis points over the 10 Year Treasury. Given the market, I wouldn’t be surprised to see that same transaction priced at 155 basis points today versus the 135 spreads that were being quoted less than one month ago. The good news is that the 10 year benchmark is back down below 5.0% (4.91% as of July 25, 2007) which is a full 35 basis points below its five year high reached in mid June. NorthMarq Capital, Inc., a national real estate investment banker headquartered in Minneapolis with 28 regional offices coast-to-coast, provides commercial real estate debt and equity financing and commercial loan servicing. NorthMarq Capital provides more than $13 billion in annual production volume and services a loan portfolio of more than $34 billion. NorthMarq also provides real estate investment consulting services for public and private clients nationally through its consulting group, NorthMarq Advisors, LLC. Steve Clifford, Assistant Vice President, can be reached at 303-225-2100. For more information, visit www.northmarq.com.
Argus is proud to welcome
our newest Broker Affiliate to the
Morningstar Enters Self-Storage Pact
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Argus Sales
The Argus Self Storage Sales Network
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Missouri Self Storage
Owners Association visit www.mssoa.org for more information
Self Storage Association visit www.selfstorage.org for more information
Texas Self Storage Association visit www.txssa.org for more information
Southern Self Storage
Convention & Tradeshow visit www.ncssaonline.org for more information
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Join
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Randy
Ross, CCIM of Coldwell Banker Commercial NRT in Salt Lake City has been
active in the commercial/industrial real estate industry for 10 years and
will represent Argus in the state of Utah. His experience as an
industrial and investment specialist provides a comprehensive understanding
of how to structure, market and close sales and leasing transactions in a
timely and professional manner. He has earned the prestigious CCIM
designation and was also recognized as a national “Top Producer” by Coldwell
Banker Commercial. Randy can be reached at 801-947-8300.
