The price of commercial real estate loans that are securitized dropped a mere 10 basis points between February and March, showing signs of stabilization in the market, an expert said.
DebtX, a Boston-based commercial loan sales advisor, said the aggregate value of CRE loans used as collateral for CMBS was 79.8% in March, down from 79.9% in February, but an improvement over the 75.9% value in March 2010.
Kingsley Greenland, chief executive of DebtX, said CRE loan prices remained at approximately the same level throughout the first quarter. "The stabilizing prices suggest continuing modest improvement in the underlying fundamentals of the commercial real estate market," he continued.
During March, the company priced 54,765 CRE loans with an aggregate principal balance of $654 billion. These loans ended up in 623 CMBS trusts.