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Capital Markets - 2/29/2008
Capital Markets - 2/29/2008
Indices as of 2/29/2008
1 Year 3 Year 5 Year 1 Mo. 3 Mo. 6 Mo. 11th Dist. 10 Yr.
12 MAT Prime
TCM TCM TCM LIBOR LIBOR LIBOR COFI Treasury
1.92 2.10 2.73 4.326 3.11 3.06 2.93 4.07 3.56 6.00
Economic Commentary
2-29-08 Most commercial real estate lenders adjusted
spreads to keep interest rates steady in spite of increased
demand for government bonds as investors reacted to more
pessimistic economic news. The 10-year U.S Treasury fell
today to a yield of 3.52 percent from its close yesterday at
3.71 percent, down 27 basis points for the week. The 5-year
Treasury yield fell to 2.50 percent. Some conduit lenders
are quoting rates in the mid-to-high 6 percent range for 10-
year debt, but only for prime properties. For less qualified
properties, rates are at least 100 basis points higher. Many
commercial banks are quoting rates in the low-to-mid 5
percent range for 5-year loans, and in the low-to-mid 6
percent range for 10-year loans.
Recent Transactions
Eugene Student Housing San Estrella 4800 W. Hillsboro Blvd Topaz Apartments
418-Units Mobile Home Park Retail Center 16-Unit apartment
Eugene, OR Phoenix, AZ Coconut Creek, FL Sacramento, CA
$14,800,000 $8,700,000 $7,500,000 $1,600,000
6.42% Interest rate 5.25% Interest rate 4.9% Interest rate 6.15% Interest rate
Fixed Fixed Fixed Fixed