Commercial Multi-Family Interest Rates Still Hover Around 5%…

By brent • July 8th, 2010

Steven Wiltshire of Marcus & Millichap Capital Corporation gave us this great information:

July 8, 2010

Multi-Family Loan Programs > $3 Million

Fixed Rate

Agency Lenders

Term

LTV

Interest Rates

5 Yr.

55 to 80%

4.35% to 4.80%

7 Yr.

55 to 80%

4.78% to 5.23%

10 Yr.

55 to 80%

5.04% to 5.49%

15 Yr.

55 to 80%

Portfolio Lenders*

LTV

Interest Rates

55 to 75%

5.75% to 6.75%

55 to 75%

6.00% to 7.25%

55 to 75%

6.25% to 8.00%

55 to 75%

*Rates based on fixed rate Act/360

Multi-Family Loan Programs < $3 Million

Fixed Rate

Agency Lenders

Term

LTV

Interest Rates

3 Yr.

55 to 80%

4.28% to 4.67%

5 Yr.

55 to 80%

4.42% to 4.84%

7 Yr.

55 to 80%

4.85% to 5.27%

10 Yr.

55 to 80%

5.24% to 5.66%

15 Yr.

55 to 80%

Portfolio Lenders*

LTV

Interest Rates

55 to 75%

5.50% to 6.40%

55 to 75%

5.75% to 6.75%

55 to 75%

6.25% to 7.25%

55 to 75%

6.50% to 8.00%

55 to 75%

*Rates based on fixed rate Act/360

Commercial Loan Programs

Fixed Rate

Portfolio Lenders*

Term

LTV

Interest Rates

5 Yr.

55-75%

6.00% to 6.60%

7 Yr.

55-75%

6.25% to 6.75%

10 Yr.

55-75%

6.25% to 7.30%

15 Yr.

55-75%

Bridge Floating

LTV

Spread Over Libor

Stabilized

65%

225 to 300

Re-Position

80%

275 to 350

Index Rate as of 2-19-10

3-Year Swap

1.50%

5-Year Treasury

2.01%

5-Year Swap

2.26%

7-Year Treasury

2.69%

7-Year Swap

2.80%

10-Year Treasury

3.22%

10-Year Swap

3.27%

30-Day Libor

0.35%

Prime

3.25%

90-Day Libor

0.54%

(*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)
Economic Commentary
.6-18-10 The MSCI World Index of stocks rose for the ninth day, the longest rally in 11 months, and Spanish bonds jumped on speculation that efforts to contain Europe’s debt crisis will succeed. Treasuries fell, while gold climbed to a record high. Oil reversed losses to rebound to more than $77 per barrel. Treasuries headed for a weekly advance on speculation that subdued inflation will persuade the Federal Reserve to keep the benchmark interest rate at a record low, supporting demand for government securities. Rates for Agency Multifamily mortgages dropped more than 15 bps, with 10-year rates being offered below 5.5%.

chart
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For more information, contact:

Steven Wiltshire
Associate Director
Portland, OR
Office: (503) 200-2046
License: CA: 01432879
Steven.Wiltshire@marcusmillichap.com
Terms, rates and conditions subject to change.

www.MMCapCorp.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.
2010 Marcus & Millichap Unsubscribe
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