Despite remaining strong on a year-over-year basis, slight percentage point decreases, prices of performing commercial real estate loans remained strong in February on a year-over-year basis, according to Boston-based DebtX, a popular marketplace for buying and selling loans.

DebtX’s research showed prices for CMBS loans increased in February from the previous month, but dropped for impaired performing loans and non-performing loans. Additionally, the market was less liquid last month than in January.

The estimated price of loans securing commercial mortgage-backed securities increased to 89.8 percent as of Feb. 28 from 89.2 percent as of Jan. 31.

The weighted average monthly price of non-performing CRE loans traded at DebtX’s marketplace was 52 percent in February, down from 52.2 percent in January. Prices were 43.6 percent in February of 2012.

The monthly average of impaired performing loan prices traded at DebtX’s marketplace was 79.9 percent in February, down from 80 percent in January. Prices were 71 percent the previous February.

The loan liquidity Index, a monthly barometer of liquidity for pools of loans sold at DebtX, was 100.5 last month, down from 105.9 in January. The Index was 100.1 in February of last year.

Prices Slip For Some CRE Loans, Rise For Others

by James Cronin time to read: 1 min
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