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Volume 3 - Number 10 | May 22, 2006
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TOP STORY: Investors Still Want Class A Buildings
By Erika Morphy
Class A properties are selling at record low cap rates as interest rates are climbing. More often than not, the properties trade at cap rates below prevailing interest rates, which, of course, means negative arbitrage for the equity. But investors have not abandoned class A buildings.
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Timberland Attracts Growing Interest
By Benjamin Mark Cole
Timberland companies are creating activity among private equity investors, Wall Street and even university endowments. The latest flame-up involves Washington State-based Weyerhaeuser Co., which owns 5.7 million acres of timberland. It revealed recently that it was considering converting from a corporation to a REIT.
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Multifamily CBMS Delinquencies Rising
By Erika Morphy
Fitch Ratings reports that US CMBS delinquencies increased in April. It is the first rise in CMBS delinquencies since last summer, albeit at a minimal rate of one basis point to 0.69%. Patricia Bach, a senior director at Fitch, says the agency is keeping an eye on the asset class.
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Fitch Creates CRE CDO Group
By Benjamin Mark Cole
In another sign of the growth in the nation’s real estate collateralized debt obligation market, Fitch Ratings recently created a group dedicated exclusively to commercial real estate CDOs. The rapid growth of the commercial real estate CDO market will likely reshape many financial institutions in the coming years.
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