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Capital Markets Briefing:
Commercial Bank Underwriting |
| June 19, 2009 |
Good Afternoon,
Attached is a PDF copy of Colliers Meredith & Grew's interest rate sheet that includes current and historical Treasury, LIBOR and Prime interest rates, which are updated daily with real time data from Strategic Alliance Mortgage.
We provide these updates on a weekly basis to keep our clients and colleagues aware of rate movements. We hope you find this information helpful.
DOWNLOAD INTEREST RATE SHEET (23KB)
The following Market Perspective provides insights and commentary on breaking news and emerging trends in commercial real estate finance.
| Commercial Bank Underwriting |
| Loan Amounts |
Most need to syndicate with another bank for loans above $15M on a single asset |
| Spreads |
200 -300 bps over internal cost of funds; Floor rates common |
| LTV/LTC
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65 -70% for most product types; can increase up to 75% for the right deal |
| Term
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Typically rate resets every 5 years; Fixed or Floating usually available |
| Amortization
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20 -25 year schedules |
| DSCR
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Typically 1.25x minimum |
| Structure
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I/O may be available; Typically some portion of recourse is required; Covenants |
| Comments
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Deep scrutiny over market vacancy, borrower profile, tenant roster, management fees, pro forma rent growth and rollover risk |
Treasuries Rise Amid Speculation Losses Won’t Be Sustained
Bloomberg — June 19, 2009
Insurers Press Case for Federal Regulation
Wall Street Journal — June 17, 2009
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| Please contact the Capital Markets Group at Colliers Meredith & Grew with any financing questions.
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Colliers Meredith & Grew is a Boston-based commercial real estate company with integrated service groups including Brokerage, Capital Markets, Counseling & Valuation, Development & Advisory, Investment Sales, and Property & Asset Management. In addition to representing its core clients in New England, Colliers Meredith & Grew provides national and international real estate services to its multi-market clients as a member of Colliers International and as an owner/member of Strategic Alliance Mortgage LLC (SAM). Colliers International is a worldwide affiliation of independently owned and operated companies in more than 293 offices in 61 countries. |
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