Commercial real estate investors find commercial mortgage-backed securities (CMBS) bonds more valuable in yield and risk than actual properties securing them. The Inland Real Estate Group of Companies Inc, Oak Brook, IL, started purchasing CMBS bonds rather than direct property because it recognized commercial real estate underlying CMBS bonds held double-digit yields at lower risk, said Dan Fasulo, managing director at Real Capital Analytics, New York. Prior to the February 27 letter, Inland American acquired five commercial real estate properties this year, but only one deal included a new commercial mortgage origination. Inland American received new financing for Brazos Ranch, closed on January 21 for nearly $15.5 million at 5.67%.
Better CMBS bond yields, risks stall new originations Michael Murray Mortgage Banking; May 2009; 69, 8; Docstoc pg. 109 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
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