Commercial real estate loans climbed in value in August, according to a company that specializes in loan sales. The value of real estate loans used to collateralize commercial mortgage-backed securities increased to 85.9% in August from 85.3% a month earlier, according to the Debt Exchange Inc., a Boston-based company that provides loan analysis, advisory, and exchange services. The firm priced more than 53,000 commercial real estate loans with an aggregate principal balance of $637.4 billion in August. The loans provide collateral for 646 CMBS trusts in the United States. The value of loans tracked by DebtX has risen over the year, suggesting a gradual improvement in the fundamentals of the commercial real estate market. At the end of December, the value of loans collateralizing CMBS stood at 79.4%, according to DebtX, substantially lower than values in August. “Commercial real estate loan prices rose in August mostly due to a decline in Treasury yields,” according to DebtX CEO Kingsley Greenland. “CRE loan prices are also continuing to recover due to improving conditions in the marketplace.” Write to Liz Enochs.
Most Popular Articles
Here are the 10 housing markets that the National Association of Realtors expects to the hottest in the nation in the next three to five years.
Since Donald Trump was elected president in 2016, the typical “Trump” branded condo sold below its marketed price.