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					                                                                                                                                                                                                                                                                                            May '11
                                                                                                        DESIRE TO                 UNDERWRITING
  TYPE OF CAPITAL             PROVIDED FROM                        RELATIVE IMPACT                                                                                          FOCUS / OVERALL COMMENT                                                            TRENDS
                                                                                                         INVEST                     COMMENT

   COMMERCIAL            Mostly deposits, capital, debt                                                                                                       Current focus is on originating stabilized loans. Majority of banks Loans to REIT's and pension funds are an important focus of
                                                                     Overall is important.                  Steady                       Sound
     BANKS                        offerings                                                                                                                    prefer 3-5 year deals, some go longer with Swap based pricing.                            big banks.

      CREDIT               Capital, commercial paper,
                                                                       Overall is limited.                  Steady                       Sound                    Most interested in repositioning, value-added situations.            Seeking to regain the market footing they once enjoyed.
    COMPANIES                 and debt offerings.


S INSURANCE               Capital, life insurance sales,
                          annuity and GIC sales, sep.
                                                                   Debt important. Equity
                                                                                                            Strong                       Sound                         Big appetite to lend but remains very selective.                       Gradually widening the underwriting box.
                                                                                                                                                                                                                                                                                                S
    COMPANIES                                                             minimal.
K                                      accts.
                                                                                                                                                                                                                                                                                                K
I CONDUITS                 Sale of loans through Wall
                                      Street
                                                                Once the major player in the
                                                               overall fixed rate debt market.
                                                                                                            Strong                       Sound
                                                                                                                                                                 Targeting life company type deals but offering slightly more
                                                                                                                                                                         leverage in an expanded geographic market.
                                                                                                                                                                                                                                       Over 20 lenders are now active and more are expected. I

L                                                                                                                                                                                                                                                                                               L
                                                                                                                                                                  Most property types will be considered for purchase but the
L PENSION FUNDS          Government, union, individual Moderate, mostly felt in equity
                          and corporate pension funds            markets.
                                                                                                            Steady                       Sound                limited activity is really taking place with high quality warehouse,                                                              L
                                                                                                                                                                                                                                     Although most activity is with equities, union pension funds
                                                                                                                                                                                                                                      are especially eager to make sound developmental loans.
                                                                                                                                                               industrial, anchored retail, apartment and urban office properties.
F                         Pension funds, mutual funds,
                                                                                                                                                                                                                                                                                                F
                                                               Significant on equity. Nominal                                                                 Most balance sheets have been strengthened with new quity and                Overall performance of this sector has improved
U REITs                    insurance companies, and
                                  individuals.
                                                                           on debt.
                                                                                                            Steady                       Sound
                                                                                                                                                                       many are actively acquiring new properties.                                           dramatically.                      U
L THRIFT                      Capital and Deposits
                                                              Important for loans under $10M
                                                                                                            Steady                       Sound
                                                                                                                                                              Smaller construction, interim, and permanent. Focus is mainly on
                                                                                                                                                                                                                                                      This sector remains active.
                                                                                                                                                                                                                                                                                                L
                                                              and for residential subdivisions.                                                                      5 year, fixed rate deals to cash flowing properties.
L INSTITUTIONS                                                                                                                                                                                                                                                                                  L
Y PARTNERSHIPS
     LIMITED                Individual and corporate
                                    investors
                                                              Growing as limited partnerships
                                                                    have been reborn.
                                                                                                            Steady                       Sound                           Typically in a wide range of property types.                   These investments have renewed appeal to investors. Y



                                                                                                                                                               Typically offers a variety of investment structures that provide
  MUTUAL FUNDS               Shareholder investors.                    Overall is limited.                  Steady             Flexible for the right deal.                                                                                  Have capital but finding it difficult to invest.
                                                                                                                                                                 appropriate risk adjusted returns for most property types.

L                                                                                                                                                                                                                                                                                              L
I OFF SHORE
    CAPITAL
                         Bank deposits, pension capital
                           and wealthy individuals.
                                                                       Overall is limited.                  Limited                      Sound
                                                                                                                                                                  There is some involvement in large loans, usually through
                                                                                                                                                                                       participations.
                                                                                                                                                                                                                                                                                               I
                                                                                                                                                                                                                                     Global credit crunch has negatively impacted flow of funds.

N                                                                                                                                                                                                                                                                                              N
                          Specialty opportunity funds,
K OPPORTUNITY
     FUNDS
                         credit companies, Wall Street
                           partner funds, and private
                                                                 Moderate on high yield debt                Steady             Flexible for the right deal.                 Focus is on buying notes and equities
                                                                                                                                                                                                                                      Funds are available for investment but transactions have K
                                                                                                                                                                                                                                                        been surprisingly few.
                                   investors.                                                                                                                                                                                                                                                  I
                                                                   Significant but only in
                         Capital and mortgage backed                                                                          Underwriting is becoming         Operating through specially designated underwriters (so called        The agencies still maintain a competitive edge in multifamily
 FANNIE & FREDDIE                                               apartment and assisted living               Steady
                                   securities                                                                               somewhat more conservative.                       DUS or Program Plus lenders).                                                     lending.
                                                                           loans.
 The terms shown herein approximate market conditions at the time of publication and are subject to frequent changes
                                                              Significant to apartments, senior                                                                  A source of construction and permanent financing with less          221(d)4 construction/perms can be particularly attractive for
     HUD / FHA           Provides mortgage insurance.                                                       Strong                       Sound
                                                                 living, and nursing homes.                                                                      borrower equity than conventional lenders typically require.                      new multifamily developments.

                        In recent years, the sources of real estate debt and equity have expanded and changed significantly. As a consequence, it is difficult even for real estate finance professionals to fully understand the focus of the many different capital sources.
                        The intention of the "Sources Matrix" is to list all of the participants in the real estate finance and investment arena. In a sense, it is intended to provide a global view of real estate finance. ALTHOUGH THIS INFORMATION IS PREPARED
                        CAREFULLY, FANTINI & GORGA CANNOT GUARANTEE ITS ACCURACY.




         Fantini Gorga 265 Franklin Street, Boston, MA 02110-3113 Ph: 617.951.2600 Fax: 617.951.9944 Visit us at www.fantinigorga.com

				
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