The lending chokehold extends to unanchored retail centers,particularly in tertiary cities or struggling inner-urban pockets."CMBS lenders are sidelined for six months or so. Hopefully, we'llsee life insurance lenders become more active," Don Farmer, seniorvice president of the south central region for Mill Valley,CA-based Bridger Commercial Funding, told developers, bankers anddealmakers at the DFW Apartment and Investment Brokers' monthlynetworking meeting at Prestonwood Country Club in North Dallas.

"Is it credit crunch or crisis, depends on who you are. If youare a borrower who needs to refinance, it's a crisis," Farmer said."If you're a seller, willing to go the agency route, there are somepretty good rates out there. It's more of a crunch than a crisisfor those guys." He reported that life companies are offeringall-in rates of 6.25% to 6.5% and floors hovering 6.25% whilecommercial banks' all-in rates range from 6.25% to 7.5%. Agencies'all-in rates are running from 6.5% to 6.15% and finance companiesare ranging from 7.15% to 7.5%.

Farmer reported that $16 billion of CMBS loans are going tomature this year, the bulk of which were booked at a 7.7% interestrate. In 2009, the industry is poised for $19 billion of CMBS debtrollover. Many of the floaters are fully amortized 10-year loans,inked at interest-only terms.