Prices Hold Steady in CRE Sector

DebtX, an online marketplace for commercial real estate (CRE) and specialty finance debt, reported that CRE loan prices were steady in July compared to last year.

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According to DebtX, the estimated price of whole loans securing the commercial mortgage-backed securities (CMBS) universe fell to 90.7 percent as of July 31, just

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barely down from 90.8 percent in June. Loan values were 88.1 percent on July 31, 2012.

For impaired performing loans, the weighted average monthly price traded at DebtX’s marketplace was 78.2 percent, up a bit from 77.5 percent in June 2013 and 77.6 percent in July 2012. The weighted average monthly price of non-performing CRE loans was 50.9 percent, down from 51.1 percent in June but up from 49.9 percent last year.

“In July, there was some continued improvement in loan-to-value ratios, but it was offset by a small upward shift in the Treasury yield curve,” said DebtX managing director Will Mercer. “The secondary loan market remains active and little changed in terms of price. Loan values are essentially right where they were a year ago.”

Meanwhile, DebtX’s Loan Liquidity Index, a monthly barometer of liquidity for pools of loans sold in its marketplace, was 97.9 in July, an improvement from 96.4 in June 2013. The index was 111.7 in July 2012.