Commercial Real Estate Loan Prices Mixed in June

Commercial Real Estate Loan Prices Mixed in June

07/26/2013 BY: TORY BARRINGER

DebtX, a full-service loan sale advisor, reported a slight drop in loan prices securing commercial mortgage-backed securities (CMBS) in June.

According to Boston-based DebtX, the estimated price of whole loans securing CMBS decreased to 90.8 percent from 91.4 percent in May. As of June 29, loan values were an estimated 88.2 percent.

The weighted average monthly price of impaired performing loans traded in DebtX’s marketplace was 77.4 percent, up from 76.9 percent in May and 76.2 percent in June 2012.

At the same time, the weighted average monthly price of non-performing commercial real estate (CRE) loans traded through DebtX’s marketplace was 51.2 percent in June, down from 52.2 percent in May but up from 48.6 percent last year.

“CMBS loans ticked down slightly in response to rising Treasury yields, but secondary market loan trades were mixed depending on performance level,” said DebtX managing director Will Mercer. “Impaired performingCRE loans priced a bit higher and non-performing loans priced a bit lower. Overall, prices are generally flattening out and remain range bound.”

DebtX’s Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold at the company’s marketplace, was 96.6, up from 95.8 the prior month and down from 112.3 the prior year.

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