Another sign has emerged that the CMBS market is starting to come back. REIT Ramco-Gershenson Properties Trust just closed on a new $31.3 million CMBS loan with J.P. Morgan. It's not the much-longed for multi-borrower conduit type deal, but still. Ramco-Gershenson secured a loan at 60% LTV for two retail properties at a ten-year term at a fixed rate of 6.5%.The deal is also a nod to REITs, the publicly-traded ones, that is, which have become de facto kingmakers in the commercial real estate debt and equity markets. The biggest boost to CMBS, it must be noted, came from another REIT - Developers Diversified Realty - last year with its $400 million CMBS.DDR then disappointed the market by declining to go back for a second pass. Instead, it has recently priced a $300 million stock offering. That move wasn't so much a commentary on the still-nascent CMBS market, but rather an illustration that REITs basically have all sorts of capital raising avenues open to them these days.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
