MIAMI—There's plenty of chatter about the CMBS markets—from warning signals for mega-CMBS to whether or not a CMBS revival will stall in 2013. But an Akerman Senterfitt study is offering a general industry consensus.
Nearly 300 of industry leaders convened at the annual day-long Akerman Summit this month at the J.W. Marriott Marquis in Downtown Miami. One of the topics of discussion: During the global banking crisis, the prospect of billions in mortgage securities getting liquidated sparked a selloff in the CMBS market. Where are we now and what happens next?
According to Patricia Goldstein, vice chairman and head of commercial real estate at Emigrant Bank, the industry is finally seeing a large recovery in the CMBS market as well as mezzanine financing, particularly among larger real estate transactions. She explained that there is less equity exposure and more principal guarantee involved in such large size deals. Goldstein also said that banks are eager to get involved in multifamily and hospitality projects, hinting that there is more competition in small to mid-size deals in Class A markets.
How does that play out against the Akerman survey? Thirty-seven percent of respondents believe that private equity is one of five top sources to fund portions of commercial real estate debt or equity in 2013. That's a 7% drop from last year. Other sources include banks (38%), foreign investors (31%), REITs (29%), and the CMBS market (24%).
What's your take? Do you agree with these findings are you seeing something totally different? Sound off.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.