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Commercial mortgage-backed securities market rises

Commercial mortgage-backed securities market rises

The commercial mortgage-backed securities market in metro Detroit continues to see marked improvements over the last year.

Industry data from New York City-based Trepp LLC shows an overall positive trajectory for CMBS debt as there are more loans on the books, fewer delinquencies, lower overall delinquent balances and delinquency rates and a higher aggregate loan balance in the Detroit-Warren-Livonia metropolitan statistical area.

All of that bodes well — for now — for the local real estate market, which relies on the CMBS financing for a variety of things, including building purchases and debt refinancing, among others.

“There is still plenty of capital available in the marketplace,” said Dennis Bernard, founder and president of Southfield-based Bernard Financial Group. “We are in the ninth inning of an extra-inning game of the real-estate cycle. It’s long and nobody knows when it will end. But unlike in the past, underwriting has stayed appropriate.”

Continue reading full article on Crain’s Detroit Business.

Kirk Phino, Crain's Detroit Business.