There have been a few of these news stories floating around lately…this one seemed quite informative. – Tim –

The Federal Reserve Board on Friday announced that, starting in June, commercial mortgage-backed securities (CMBS) and securities backed by insurance premiums finance loans will be eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).

The CMBS market came to a standstill in mid-2008. The inclusion of CMBS as eligible collateral for TALF loans will help prevent defaults on economically viable commercial properties, increase the capacity of current holders of maturing mortgages to make additional loans, and facilitate the sale of distressed properties. CMBS accounted for almost half of new commercial mortgage originations in 2007.

More than 1.5 million insurance premium finance loans are extended to small businesses each year so they can obtain property and casualty insurance. The loans are often funded through the asset-backed securities (ABS) market and have become more expensive and more difficult to obtain since the shutdown of that market last fall. The inclusion of insurance premium ABS as TALF-eligible collateral will facilitate the flow of credit to small businesses.

The Board also authorized TALF loans with maturities of five years. Currently, all TALF loans have maturities of three years. TALF loans with five-year maturities will be available for the June funding to finance purchases of CMBS, ABS backed by student loans, and ABS backed by loans guaranteed by the Small Business Administration. The Board indicated that up to $100 billion of TALF loans could have five-year maturities; it will continue to evaluate that limit. Some of the interest on collateral financed with a five-year loan may be diverted toward an accelerated repayment of the loan, especially in the fourth and fifth years.

One thing for sure – CoStar is good for reports like this – Tim

An uptick in both the number and average loan size of new defaults resulted in a one-quarter point climb in March CMBS delinquencies to end the month at 1.53%, and there are significant indicators that point to record climb in defaults in April as well, according to Fitch Ratings.

Read the rest here …

And he is the 68th richest man in the US according to Forbes. Sit back and listen.

I like the part about us all “drinking too much Koolaide”

WASHINGTON – April 22, 2009 – Senior real estate executives believe market conditions in the income-producing real estate sector – encompassing office buildings, shopping malls, warehouses, hotels, and apartment buildings – are getting better, even though conditions eroded a bit in the second quarter, according to The Real Estate Roundtable Sentiment Survey for second quarter 2009.

Nearly 60 percent of the 120 survey respondents say that they expect conditions in the real estate market to get better within a year. This view caused a slight uptick in the Overall Q2 2009 Sentiment Index, which at 41 is up from the previous quarter’s score of 38 and its low point of 33 six months ago.

Most executives surveyed are troubled by the lack of access to capital. Eighty-eight percent of respondents think it’s harder to get a loan compared to a year ago, though 69 percent of respondents believe the situation will turn around in the next year. Likewise, 86 percent of respondents think equity financing has deteriorated from a year ago, yet 68 percent of respondents predict it will improve in the next year.

“There is access to both equity and debt, but they’re expensive. Banks are being very selective and are trying to pick survivors,” said one survey respondent.

Roundtable members’ portfolios contain over 5 billion square feet of office, retail and industrial properties; over 1.5 million apartment units; and in excess of 1.3 million hotel rooms. Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.

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The 90-year-old annuity financial services firm, founded by Andrew Carnegie, reportedly…  lost around $3.3 billion over the past year but still maintained around $17.8 billion in capital by year’s end. The company has earned triple A ratings as well.

Nonetheless, exclusive leasing agent CB Richard Ellis will immediately begin marketing built floor space that ranges in size from 8,000 to 45,000 square feet at the firm’s Midtown headquarters near Grand Central Terminal. Sources tell GlobeSt.com that building owners would also be willing to negotiate larger tracts of space for interested parties. Built in the 1950s, the building was refurbished and modernized in the 1990s.

The property has a contemporary double-height lobby facing Third Avenue, along with secondary access on 45th Street that could become a private entrance for a prospective tenant, according to CBRE. It also features an outdoor plaza on the 22nd floor and a conference and auditorium floor, both of which will be available to all incoming tenants, CBRE says.

Building agents for the property are CBRE vice chair Howard Fiddle and first VPs Zachary Freeman and David Kleinhandler. Also part of the leasing team are CBRE’s global corporate services group led by senior VP Bill Mooney and first VP Joshua Leibowitz.