MULTIFAMILY CMBS LOANS MAKING A COMEBACK.

[Michael Upshur]

The (5/3, Anderson, 131K) reports that, according to JLL Managing Director John Manning, "CMBS has come back substantially and all CMBS lenders are quoting and actively chasing deals." The report says "borrowers can now get a typical CMBS loan that covers 70 percent of the value of an apartment property, with an interest-only period of three years or less at an interest rate of 275 to 300 basis points over swap rates." The National Real Estate Investor points out "that's slightly higher than the rates offered by lenders like Fannie Mae and Freddie Mac. Tougher underwriting for CMBS." However, "CMBS investors have not completely recovered their appetite for risk," and "buyers of B-piece CMBS notes prefer loans that cover a relatively small amount of the value of a property."