Monday, February 6, 2012

Wells Fargo, PNC/Midland and Berkadia Lead National Rankings of Commercial/Multifamily Servicing Volumes

 Atlanta, GA  - The Mortgage Bankers Association (MBA) today released its year-end ranking of commercial and multifamily mortgage servicers as of December 31, 2011. 

At the top of the list of firms is Wells Fargo with $437.7 billion in U.S. master and primary servicing, followed by PNC Real Estate/Midland Loan Services with $355.1 billion, Berkadia Commercial Mortgage LLC with $176.5 billion, Bank of America Merrill Lynch with $115.0 billion, and KeyBank Real Estate Capital with $108.2 billion.

 Wells Fargo, PNC/Midland, Berkadia, Bank of America Merrill Lynch and KeyBank are the largest master and primary servicers of commercial/multifamily loans in U.S.
CMBS, CDO and other ABS; PNC/Midland, MetLife, GEMSA Loan Services, L.P., Prudential Asset Resources and Northwestern Mutual are the largest servicers for life companies; and PNC/Midland,

 Wells Fargo, Deutsche Bank Commercial Real Estate, Berkadia and GEMSA Loan Services are the largest Fannie Mae/Freddie Mac servicers.

Specific breakouts include:

  • Total U.S. Master and Primary Servicing Volume
  • .U.S. Commercial Mortgage-backed Securities (CMBS), Collateralized Debt Obligations (CDOs) and Other Asset-Backed Securities (ABS) Master and Primary Servicing Volume
  • U.S. Commercial Banks and Savings Institution Volume
  • U.S. Credit Companies, Pension Funds, REITs, and Investment Funds Volume
  • Fannie Mae and Freddie Mac Servicing Volume
  • Federal Housing Administration (FHA) Servicing Volume
  • .U.S. Life Company Servicing Volume
  • .U.S. Warehouse Volume
  • .U.S. Other Investor Volume
  • .U.S. CMBS Named Special Servicing Volume
  • U.S. Named Special Servicing Volumes Across All Investor Groups
  • Total Non-U.S. Master and Primary Servicing Volume

 For a complete copy of the report, please contact  Matt Robinson, 202-557-2727

Voit Real Estate Services Named to Market 124,000-SF Pinnacle Park Business Center in Deer Valley, AZ


Phoenix, AZ. (Feb. 06, 2012) – Darren Tappen, Mike Kasulaitis (middle right photo), and Aric Adams (lower left photo) of Voit’s Phoenix office have been selected by property owner Westport Capital Partners to market Pinnacle Park Business Center (top left photo), a 123,544 square-foot industrial property available for lease at 1125 W. Pinnacle Peak Rd. in Phoenix. 

The property, which is comprised of four buildings and includes multi-tenant flex space with rent-ready suites, is located in the Deer Valley submarket - one of the most premier areas in the market according to Darren Tappen, Senior Vice President in Voit’s Phoenix office.

“Companies in Phoenix now have the opportunity to lock in competitive lease rates in highly desirable areas like Deer Valley,” said Tappen. “This property is situated at the I-17 corridor, which is home to the largest concentration of corporate users in the Phoenix area, making it an ideal location for growing businesses.”

This property is located near the 1-17, Loop-101, and SR-51 freeways, and is surrounded by retail facilities including the Happy Valley Towne Center, and the Shops at Norterra.

Judith Brower / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

2011 Operating Results and Increased 2012 Guidance Announced by National Retail Properties Inc.

 Orlando, FL, Feb. 6, 2012 – National Retail Properties, Inc. (NYSE: NNN), a real estate investment trust, today announced operating results for the quarter and year ended December 31, 2011. Highlights include:

• Increased FFO per share 8.3% from $1.45 in 2010 to $1.57 in 2011 (excluding impairments)
• Dividend yield at December 31, 2011 of 5.8%
• Dividends per share increased to $1.53 (+ 1.3%) marking the 22nd consecutive year of annual dividend increases - one of only 104 public companies with 22 or more consecutive annual dividend increases

• Maintained high occupancy levels at 97.4%
• Invested $772.4 million in 218 properties with an aggregate 3,448,000 square feet of gross leasable area
• Sold eight properties for $12.6 million producing $527,000 of gains on sale (not included in FFO)
• Expanded unsecured bank credit facility to $450 million while extending the term to May 2015 and reducing the interest
rate to LIBOR + 150 bps

For a complete copy of the company’s news release and statistics, please contact

Kevin B. Habicht
Chief Financial Officer
(407) 265-7348

MBA: Ten Percent of Non-Bank Commercial/Multifamily Debt Will Mature in 2012, Down From 2011

 Atlanta, GA (Feb. 6, 2011) - Ten percent, or $150.6 billion, of commercial and multifamily mortgages held by non-bank lenders and investors will mature in 2012, a 3 percent decline from the $154.7 billion that matured in 2011, and an 18 percent decline from 2010 according to today's release of the Mortgage Bankers Association's (MBA) 2011 Commercial Real Estate/Multifamily Survey of Loan Maturity Volumes. 

 The loan maturities vary significantly by investor group.  Just 4 percent ($12.4 billion) of the outstanding balance of multifamily and health care mortgages held or guaranteed by Fannie Mae, Freddie Mac, FHA and Ginnie Mae will mature in 2012. 

Life insurance companies will see 6 percent ($19.6 billion) of their outstanding mortgage balances mature in 2012.  Among loans held in CMBS, 11 percent ($72.0 billion) will come due and twenty-nine percent ($46.6 billion) of commercial mortgages held by credit companies and other investors will mature in 2012.

 "The volume of commercial and multifamily mortgages coming due has declined over the last two years, from $184 billion in 2010, to $155 billion in 2011, to $151 billion this year," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.

 "And because commercial and multifamily mortgages are relatively long-term in nature, most years see ten percent or less of the total outstanding balance coming due. 

“MBA first conducted this survey in 2008 in response to concerns that there was a wave of commercial mortgage maturities that would swamp the market. 

“That survey, and each one since, has shown that the volume of commercial and multifamily mortgages maturing each year represents only a small portion of the commercial mortgage universe."

MBA's 2011 survey collected information directly from servicers on the years of maturity of $1.46 trillion in outstanding non-bank commercial/multifamily mortgages.

Only small shares of the commercial and multifamily mortgage debt held by life insurance companies, Fannie Mae, Freddie Mac or FHA will be coming due in 2012 or 2013.  Greater shares of mortgages held in commercial mortgage-backed securities (CMBS) and by credit companies, warehouse facilities and other investors will mature in 2012 and 2013.

 The dollar figures reported are the unpaid principle balances as of December 31, 2011.  Because most loans pay down principle, the balances at the time of maturity will generally be lower than those reported here.  This survey covers $1.46 trillion of commercial and multifamily mortgages held or insured by life companies, Fannie Mae, Freddie Mac, FHA, CMBS trusts and other non-bank lenders and investors. 

Banks and thrifts hold an additional $793 billion in mortgages backed by income producing properties which are not covered by this survey.

To learn more or to purchase a copy of the report, please contact.
 Matt Robinson

MBA Forecasts $230 Billion of Commercial and Multifamily Mortgage Originations in 2012; $2.4 Trillion of Commercial and Multifamily Mortgage Debt Outstanding

 Atlanta, GA (Feb.  6, 2012) - In its inaugural forecast of the commercial/multifamily real estate finance markets, the Mortgage Bankers Association (MBA) projects originations of commercial and multifamily mortgages will hit $230 billion in 2012, an increase of 17 percent from 2011 volumes, and continue to rise to $290 billion in 2015.

  Commercial/multifamily mortgage debt outstanding is expected to also grow in 2012, ending the year above $2.4 trillion, two percent higher than at the end of 2011.

 By the end of 2015, mortgage debt outstanding is forecast to exceed $2.5 trillion.  MBA previewed its forecast of the commercial/multifamily markets today at its Commercial Real Estate/Multifamily Housing Convention in Atlanta.

"Our forecast anticipates continued strength in lending by life companies and the GSEs, increased lending by banks and others, and a slow but steady return in CMBS activity," said Jamie Woodwell (top right photo) MBA's Vice President of Commercial Real Estate Research.  "Low loan maturity volumes over the next few years, coupled with moderate sales transaction activity, will mean that a relatively robust supply of mortgage capital will be a catalyst for deal activity."

Commercial/multifamily mortgage bankers' originations volumes are projected to rise to $230 billion in 2012, $245 billion in 2013, $265 billion in 2014 and $290 billion in 2015.  The increases in originations activity will push commercial/multifamily mortgage debt outstanding to $2.4 trillion by the end of 2012 and more than $2.5 trillion in 2015. 

The projections come from the Mortgage Bankers Association's inaugural forecast of key commercial/multifamily real estate finance markets.  The forecast will be available to MBA's commercial/multifamily members and projects commercial and multifamily mortgage origination volumes, the level of mortgage debt outstanding and loan maturity volumes, including details for major investor groups and for the multifamily real estate finance sector.

 "MBA provides a range of tools and resources to help its members do business," said Jay Brinkmann (middle left photo), MBA's Chief Economist and Senior Vice President of Research and Education.  "MBA's new commercial/multifamily real estate finance forecast joins our regular economic and single-family finance forecasts, and provides MBA members with another valuable resource for their business planning."

 MBA's commercial/multifamily members will be able to download a copy of MBA's Commercial/Multifamily Real Estate Finance Forecast at  

 Matt Robinson

CRE Show: U.S. Apartment Market Continues to Roll

 ATLANTA, GA (Feb. 6, 2012) – The U.S. apartment market has performed spectacularly in recent years, and the sector will continue to roll in the years ahead as “Echo Boomers” enter the workforce.

 Guests on the most recent episode of the “Commercial Real Estate Show” shared those observations and others in a wide-ranging update on the market. Topics included occupancy rates, rent growth, future development locations and a “game-changing” way of setting rents.

 The overall national apartment occupancy rate was 93.5 percent in 2011, said Ronald G. Johnsey (top right photo), president of AxioMetrics Inc. The 2012 rate should climb to 95 percent, he predicted. Apartment rents grew by 4.1 percent last year, and are expected to grow by 5.5 percent in 2012, Johnsey added.

Class C apartments have lagged slightly in occupancy when compared to Class A and B, but “this is the year we’re going to fill in Class C,” Johnsey said. “We’re going to see the occupancy rates in all classes get closer to 95 percent, and that’s going to create really strong pricing power.”

 The entrance of Echo Boomers – those born in the 1980s and early 90s – into the rental pool is another reason why Johnsey is predicting a long-term bull market for the sector. Echo Boomers are getting married later and often carry significant college debt – two factors that decrease their likelihood of buying a home in the near future, he noted.

 Doug Culkin (middle left photo), president of the National Apartment Association, said new development should start topick up noticeably in 2013 and 2014. Apartment developers are not only seeking land on the ever-popular East and West Coasts, but also in college towns, where demand is being created in part by empty nesters “looking for culture,” Culkin said.  

Developers have made “a real move to quality” when it comes to locations, said Ernie Eden (middle right photo), a senior vice president in Bull Realty’s Apartment Group. “If you’ve got a great location, there’s all sorts of interest on the part of developers,” especially if the site is in an infill area of a large city, he added.

 Revenue-management software – which sets the rent for a unit using sophisticated algorithms that take into account everything from seasonal demand to the economy – “has become the game changer in the apartment industry,” said Chris Burns, president of the Atlanta Apartment Association and a regional vice president with Lincoln Property Co.

By taking human nature out of the rent-setting process, apartments can take in more revenue, Burnssaid. Lincoln properties that have instituted the pricing system have seen up to 8 percent increases in revenue, he noted. Hotels and airlines use similar systems to set prices.

 “That’s amazing that you can get that much better performance out of that system,” said show host Michael Bull (lower left photo), founder and president of Bull Realty. The system automatically adjusts new rents and renewal rents on a daily basis based on demand and other market factors.

, The next “Commercial Real Estate Show” will be available Feb. 9 and will examine how businesses can use Twitter.

 America’s “Commercial Real Estate Show” is a national talk radio show about commercial real estate. New shows are available beginning every Thursday at the show website, Shows are also broadcast on AM stations, including Atlanta station Biz 1190 WAFS on Saturdays at 10 a.m. Show podcasts are available on-demand on iTunes and the show website.

 The show host is 30-year commercial real estate veteran Michael Bull, CCIM. Michael is the founder of Bull Realty, Inc, a regional commercial brokerage firm with three offices headquartered in Atlanta, Georgia.

 To learn more about the U.S. apartment market, please contact  Stephen Ursery,