WASHINGTON, DC-Conduits are becoming more aggressive with their pricing for DC properties, according to newly hired Jones Lang LaSalle Real Estate Investment Banking principal Jon Goldstein. He tells GlobeSt.com that JLL is getting set to go seek financing for a few Northern Virginia office deals--and the firm expects the conduits in particular to step up because of the deals’ profile. “We have been talking with CMBS lenders very recently about what they are interested in and it is clear they are looking to get more aggressive, especially for assets in DC,” he says.

LTVs for conduit-financed transactions are now anywhere between 70% to
75%, Glodstein adds. That is also true for life companies--albeit only for core properties, he says. One reason JLL tapped Goldstein, who was with Cassidy Pinkard before his move to JLL, was that it wants to build out its debt platform in light of the stepped up activity, particularly in the DC market.

More liquidity and record low interest rates have resulted in a surge of activity, says Wes Boatwright, managing director of JLL’s Real Estate Investment Banking group. Most DC-area clients are focusing on refinancing now, Goldstein adds. “Anyone with a loan coming due in the next 12 to 18 months is looking at this because rats are so low. We also see some acquisition financing needs.” Distress or gap financing is also evident, but not nearly as much as the demand for it in other markets, he relates.