While the volume of distressed property and loan sales continuesto disappoint many potential buyers and the "new normal"market-pricing level continues to evade easy analysis, onesurprising market trend is the re-emergence of some high-price/low-capitalization rate transactions. Many commentators have notedthat certain high-profile transactions have attracted multiplebidders and closed at prices that were higher than expected. Thisanomaly has several causes and a few caveats.

Let's start with the caveats. First of all, there have been veryfew such transactions. Also, many of the transactions are notexactly typical. Although the prices may have been higher thanexpected, most are well below the high-water marks set at the topof the bubble two or three years ago.

Trophy office buildings filled with creditworthy tenants,located in cities with high barriers to entry, are cited asexamples of the new enthusiasm.

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