Submitted by Jill Jamieson-Nichols, Colorado Real Estate Journal
Commercial mortgage-backed securities are roaring back, with securitizations on track to more than double last year’s level, according to Matt Ruark, senior vice president and life pension program manager for KeyBank Real Estate Capital.
“CMBS is on pace this year to do $100 billion worth of securitization,” Ruark said at NAIOP Colorado’s monthly breakfast meeting Tuesday morning. That compares with $240 billion at the peak in 2007 and $40 billion last year. The increased liquidity is expected to favorably impact the industry going forward.
Panelists at the event, titled, “Capital Markets – Show Me the Money,” included William Hyatt of JCR Capital, Stephen Bye of NorthMarq Capital Inc., and Lane Hamilton of Colorado State Bank and Trust. Ruark said, “There is availability of capital,” for commercial real estate loans, but property type, location and lender profile all come into play, panelists agreed.
While multifamily has been a preferred product type, Hyatt said private capital is seeking drugstore- and grocery-anchored retail, and he sees significant demand for industrial, particularly in port cities. Bye, who represents institutional capital, said he has two pension funds interested in lending on a speculative industrial project in a desirable location within a tight market, and said there also is some interest in new office deals in “100 percent locations” with an element of preleasing.