MBA CREF 2015
A sound off to those who plan on attending the annual Mortgage Bankers Association CREF conference in San Diego Feb. 1st-4th! Hopefully this thread can provide some networking opportunities- I for one work exclusively in Credit Tenant Lease lending and would be happy to discuss in a PM or set up a meeting while in San Diego. Thanks and hope to hear from a few /r/commercialrealestate folks!
[{"id": "co3t92d", "text": "Banks and life insurance regulatory capital charges on credit-tenant CML's have been dinged a bit over the past five years and I've wondered if that has impacted pricing... you have any perspective on that? I'm not attending the conference, but most of our CRE lending group is.", "replies": [{"id": "co3xecz", "text": "No, there is a large appetite for insurers to add both CTL and Private Placement exposure to their bond portfolios and pricing for long term debt today is very attractive based on the current treasury curve.", "replies": [{"id": "co3ymet", "text": "Good to know. I work at a CRE research desk and I know some of our clients have felt priced out of some single-tenant credit deals because agencies are not giving credit for the tenant. \n\nThe most memorable to me was in 2011, a seasoned fully amortizing loan with 4 years remaining and AAA-rated Microsoft as the single tenant on a lease with about 10 years left (one of the few leases Microsoft has, mostly they are owner/user). Contemporary LTV was about 20% due to the amortization, but because the DSCR was barely below 1.0x the mortgage holder had a comically high capital charge (and meanwhile, I/O flex collateral in Detroit that is 60% LTV and just lost it's only tenant gets the most favorable capital charge). I won't mention the rating agency that still rates CML's this way...", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]