Emerging capital sources for refinancing and acquisitions.

The Fourth Roundtable was held in Dallas on December 03, and the discussion was about new emerging capital sources for refinancing and acquisitions. Invited panels are Private Equity and Financial Institutions and developers. They discussed the opportunity of refinancing from Foreign and Pension fund and the Refinancing and Acquisition opportunities expected in the coming year 2010.The question is where we are at the cycle. The bad news is there is no work now even though these funds always have money. Total mass began when consumers were unwilling to spend, and the credit card companies cut consumers’ spending limits. That resulted in many empty retail spaces. It is difficult to predict the sale side of market. Once transactions occur, we will know. The CMBS market is flat. The leverage is 75%. In 2006 to 2007, CMBS was at 80-100 basis points above, now it lost 40-50% of value like U.S. Treasury Bond. Today, the phrase is used that commercial real estate is dead yield, and that term was never used since 2001.. The government is trying to bring the equity back to market. The year 2010 will be the recovery year. There is plenty of money out there. We just need the incentives for sellers to sell. Congressmen in Washington have to understand the distinction between residential and retail mortgage to better come up with the incentives.