9-18-09 - Treasury
prices declined last week – pushing yields up for the first time in five weeks –
as traders prepare for $112 billion in Treasury note sales next week, and the
Fed’s meeting to discuss the economy and rates. At its last meeting the Fed said
it would "gradually slow" its purchases of government securities and committed
to keeping the key interest rate between zero and 0.25 percent for an extended
period to promote economic recovery. Friday-to-Friday note yields rose 9 bps
(10-year: 3.43%; 3-year: 1.51%) to 15 bps (7-year: 3.06%; 5-year: 2.41%). The
90-day LIBOR, an important gauge of the effectiveness of the Fed's monetary
policy, fell to a record low of 0.289 percent. Valuations in Eurodollar futures
contracts point to LIBOR rising toward the end of the year.
Multifamily Loan Programs > $3 Million
Fixed Rate
Agency Lenders
Term
Leverage Max.
Interest Rates
5 Yr.
55 to 80%
4.47% to 5.30%
7 Yr.
55 to 80%
4.96% to 5.79%
10 Yr.
55 to 80%
5.24% to 6.07%
15 Yr.
55 to 80%
n/a
Portfolio
Lenders*
Leverage Max.
Interest Rates
55 to 75%
6.50% to 6.75%
55 to 75%
6.75% to 7.25%
55 to 75%
6.90% to 8.00%
55 to 75%
n/a
*Rates based on Act/360
Multifamily Loan
Programs < $3 Million
Fixed Rate
Agency Lenders
Term
Leverage Max.
Interest Rates
3 Yr.
55 to 80%
4.66% to 5.19%
5 Yr.
55 to 80%
4.86% to 5.44%
7 Yr.
55 to 80%
5.28% to 5.82%
10 Yr.
55 to 80%
5.63% to 5.90%
15 Yr.
55 to 80%
n/a
Portfolio
Lenders*
Leverage Max.
Interest Rates
55 to 75%
6.00% to 6.38%
55 to 75%
6.50% to 6.75%
55 to 75%
6.75% to 7.25%
55 to 75%
6.90% to 8.00%
55 to 75%
n/a
*Rates based on Act/360
Commercial Loan Programs
Fixed Rate
Portfolio
Lenders*
Term
Leverage Max.
Interest Rates
5 Yr.
55-75%
6.75% to 6.90%
7 Yr.
55-75%
6.90% to 7.38%
10 Yr.
55-75%
7.25% to 8.63%
15 Yr.
55-75%
n/a
Bridge Floating
Leverage Max.
Spread Over
Libor
Stabilized
65%
225 to 300
Re-Position
80%
275 to 350
Index Rate
as of publication date
Variable Rates
Fixed Rates
3-Year Swap
2.01%
5-Year Treasury
2.45%
5-Year Swap
2.38%
7-Year Treasury
3.10%
7-Year Swap
3.30%
10-Year Treasury
3.47%
10-Year Swap
3.65%
30-Day Libor
0.25%
Prime
3.25%
90-Day Libor
0.29%
(*Portfolio Lenders
include Banks, Life Insurance Companies and Credit Unions)
Recent Transactions
Waterstone Millbrae
Multifamily Garden Apt.
Millbrae, CA
$23,770,000
5.74 Fixed
10-yr term / 30-yr amort.
N. Magnolia Ave
Multifamily Garden Apt.
Anaheim, CA
$7,020,000
5.57 Fixed
10-yr term / 30-yr amort.
Town & Country
Manufactured Housing
Colorado Springs, CO
$2,500,000
5.59 Fixed
30-yr term / 30-yr amort.
