changers that occur in the economy, I don’t expect the CMBS market returning in a robust way.” At least, not any time soon.
There are still some major issuances scheduled, says Wilcox, but
the uncertainty in the economy has given some issuers pause to
bring their deals to market. “A number of the guys who were active
three or four months ago are still putting out term sheets, but are
being more conservative with them now, and they’re not in as
much of a rush to win a loan,” he notes.
Even though some issuers have pressed forward with their deals
and are perhaps willing to break even or make a smaller profit
based on the pricing and value changes that have occurred, the
continued air of uncertainty among lenders as to the value of the
bonds will certainly limit the volume of loans they will commit to.
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major metropolitan areas, including those in
the Northeast and California, he adds.
The strongest asset class is multifamily, and
this will likely remain the case for some time.
“Multifamily has not really relied on CMBS as
a source of debt financing, so if that market
continues to be dragged through the mud by
the capital markets, apartments can still thrive
without it,” Fasulo points out. “That can’t be
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