economic recovery, the more
investors will be willing to buy
assets,” Frater says.
He predicts that life insurance companies are likely to
do the same or slightly more
in commercial real estate lending than they did in 2012.
“They have come down quite a
bit in yield requirements,”
Not that life insurance companies are without challenges.
Frater notes that they are not
selling a lot of new life insurance policies, which means
they are not likely to see much
additional growth. “So many of
them will just be replenishing
their portfolios,” Frater says.
On the other hand, “some
life insurance companies are
switching to equity allocations from debt
allocations, so I believe we will see more in
equity lending. Also, some are doing more
Life will be particularly active this year,
says Lawrence Stephenson, senior EVP and
regional manager at NorthMarq Capital in
“The key thing to remember
is that the world economy
doesn’t like surprises.
Everyone knows what is
happening on the Hill and
it’s being priced in. There
will probably be some choppy moments
this year but we’re definitely in a better
space now compared to 2009.”
Durning, senior managing
director at the firm. “Last
year was overall the second
largest year we have had,” he
said. “We have a continued
low interest rate environment
where commercial mortgages
are very attractive. At the
same time, we see more
demand coming from growth
in fundamentals. The econ-
omy is starting to improve
and we are seeing real
improvement in the property
Minneapolis. “Life insurance companies
are getting more money allocated for real
estate and the few life companies that have
been out of the market or only did small
volumes in 2012 are telling us they will
ramp it up this year.”
Certainly that is the case with Prudential
Mortgage Capital Co., according to David
The CMBS Engine
Humming steadily in the
background is the CMBS
market. Once left for near
dead after the crash, the
industry posted about $45
billion in transaction volume in 2012. For
2013, estimates put CMBS volumes at $60
billion. Granted, these numbers are
nowhere close to what the industry posted
in 2004 through 2007. That said, it is
clearly on an upward trajectory.
More interestingly, 2012 was the year
80% of our loans are with repeat borrowers.
Responsive, efficient execution, even under the tightest of timelines.
Come visit us at NMHC or CREF and see why Oak Grove
is the lender of choice for borrowers nationwide.
Contact Jeff Patton 205-222-9993 firstname.lastname@example.org
Contact Ken Dayton 763-656-4565 email@example.com
Fannie Mae, Freddie Mac and FHA LEAN approved lender.