This month Freddie Mac sold $734.5 million in commercial mortgage-backed securities, with more than 80% of the loans for student housing owned by landlord Kayne Anderson. The deal highlights investors' rising interest in student housing, once considered an alternative asset class.
The commercial mortgage-backed security market has done well this year, but questions are growing about its continued traction as interest rates are expected to rise. Right now there is about $7.5 billion worth of securities about to be marketed by banks.
Debt is becoming available to a broader segment of the commercial real estate market, participants at the Commercial Real Estate Finance Council conference said. The B piece is also strengthening. Some reservations were expressed, though. "It seemed like most attendees felt as though the market is headed in the right direction in 2013, but there is still some nervousness," said Marielle Jan de Beur, managing director and head of structured products research CMBS and real estate research for Wells Fargo Securities.
The version of the 2013 National Defense Authorization bill approved by the House last week would spend $369 million for military and infrastructure improvements on Guam as part of a plan to transfer 5,000 U.S. Marines from Japan to Guam in the next few years. Work would include construction of a hangar at Andersen Air Force Base. The Senate still has to consider the bill. However, the White House has said it would veto the House version.