Table of Contents

CRE Finance World, Summer 2012

Contents CRE Fin a nCE W Rld ® T h e V o i c e o f C o m m e r c i a l R e a l E s t a t e F i n a n c e 3 Letter from the Editor Publisher: Joseph Philip Forte, Esq. Paul Fiorilla, Prudential Real Estate Investors Editor-in-Chief: Brian P. Lancaster 4 Welcome Letter from Stephen M. Renna Co-Managing Editors: CEO, CRE Finance Council Paul Fiorilla and Julia Tcherkassova 6 The Washington Minute Design: Bruce Zahor Michael P. Flood, Vice President, Legislative & Regulatory Policy, CRE Finance Council Layout: Kristin Searing 10 Risks to Recovery in Commercial Real Estate Victor Calanog, Head of Economics & Research, Reis, Inc., Kyle McLaughlin, Senior Associate for Economics CRE Finance Council Staff & Research, Reis, Inc., and Brad Doremus, Senior Analyst for Economics & Research, Reis, Inc. Stephen M. Renna 15 The New World Order for Special Servicers: Is the Cure Worse Than the Disease? Chief Executive Officer Stacey M. Berger, Executive Vice President, PNC Real Estate/Midland Loan Services Ed DeAngelo Vice President, Technology & Operations 19 Securitization is a good thing … Really! Michael Flood John M. Scheurer, Consultant Vice President, Legislative & Regulatory Policy 23 The U.S. Apartment Sector’s Recovery Hasn’t Trickled Down to Multifamily CMBS Assistant, FinanceNatalya Ford Larry Kay, Director, Standard & Poor’s Ratings Services Patricia Geremia 26 Faulty Pricing? Director, Sponsorship Sam Plimpton, Partner, The Baupost Group, L.L.C., Rich Krumholz, Analyst, The Baupost Group, L.L.C., Stephanie Heliker and Casey Nelson, Analyst, The Baupost Group, L.L.C. Production Manager Erin Liberatore 28 Rising Online Sales Could Keep Retail Vacancies Elevated Director, Meetings Howard Esaki, Managing Director – Global Head Structured Finance Research, Standard & Poor’s, Alexandra Ong and James M. Manzi, CFA, Senior Director – Structured Finance Research, Standard & Poor’s Meetings Coordinator/Administrative Assistant 32 Analyzing Special Servicer Performance Matt Rhodes Vice President, Communications Lea Overby, Head of CMBS Research, Executive Director, Nomura Securities International, and Steven Romasko, CMBS Research, Analyst, Nomura Securities International Andrea Rouse Director, Administration 38 CMBS Collateral Performance: Inside the Numbers Martin Schuh Thomas A. Fink, CRE, Senior Vice President, Managing Director, Trepp, LLC Assistant Vice President, Legislative & Regulatory Policy 41 Investors Slowing Down, But Still Following the Multifamily Road Stacy Stathopoulos Terri Rubin, Research Analyst, Berkadia Commercial Mortgage Vice President, Strategic Initiatives 44 CMBS Opportunities Still Exist, Despite the Rally Jeffrey Berenbaum, Director, Citi, and Rajashri (Priya) Joshi, Director, Citi CRE Finance Council Europe Jaymon Jones 50 The Quake is Over, but the Aftershocks Are Darn Persistent Director, Strategic Initiatives Stephen Miller, Director of U.S. Capital Markets, Debt and Risk Management Research, Property & Portfolio Hannah Liebing Research, Inc., and Suzanne Mulvee, CFA, Senior Real Estate Strategist, Property & Portfolio Research, Inc. Events/Finance Coordinator, Europe 54 U.S. CMBS Balloon Wave Carol Wilkie Russel F. Parentela, Global Head of Mortgage Product, Bloomberg L.P., and Cheryl Lopez-Collins, Bloomberg, L.P. Managing Director, Europe 58 Property Sales in Receivership: Alternative to Foreclosure on the Increase Bill Hoffman, President/CEO, Trigild Volume 14, Number 2, Summer 2012 62 ULI Survey of Real Estate Economists Commercial Real Estate Finance Council (CREFC®),® is published by theCRE Finance World Stephen R. Blank, Senior Fellow, Finance, ULI, and Dean Schwanke, Executive Director, ULI Center 900 7th Street NW, Suite 820, Washington, DC 20001 for Capital Markets and Real Estate email: info@crefc.org, website: www.crefc.org. 64 Large Loan Special Servicing – Know Before You Go © 2012 CREFC - Commercial Real Estate Finance Council, Edward L. Shugrue III, CEO, Talmage, LLC all rights reserved. Advertising: For information regarding advertising within FORUM U PDATES : CRE Finance World, please contact Stephanie Heliker, CREFC, 68 Forum Spotlight: High Yield Debt and Investment Forum Update phone: 646.884.7578, fax: 646.884.7569, email: sheliker@crefc.org. William M. O’Connor, Partner, Thompson & Knight LLP Editorial: Questions? Comments? Send queries and letters to Letters to the Editor, Brian P. Lancaster, Editor-in-Chief, 69 Forum Spotlight: Issuers Forum Update CRE Finance World, email: brian.lancaster@rbs.com. Rene Theriault, Vice President, Goldman, Sachs & Co. This publication is provided by CREFC for general information 70 Forum Spotlight: Portfolio Lenders Insurance Company Sub-Forum Update purposes only. CREFC does not intend for this publication to be a Richard Coppola, Managing Director, Head of Real Estate Finance, TIAA-CREF, and Todd Everett, solicitation related to any particular company, nor does it intend to Managing Director, Head of Real Estate Fixed Income, Principal Real Estate Investors provide investment advice to investors. Nothing herein should be construed to be an endorsement by CREFC of any specific company or its products. We advise you to confer with your securities counsel to determine whether your distribution of this publication will subject your company to any securities laws. CRE Finance World assumes no responsibility for the loss or damage of unsolicited manuscripts or graphics. We welcome articles of interest to readers of this magazine. Opinions expressed are those of the author(s) and not necessarily those of CREFC. Cover photo © Shutterstock.com CRE Finance World Summer 2012 2


CRE Finance World, Summer 2012
To see the actual publication please follow the link above