Market Watch April 2012

Marcus & Millichap, Real Estate Investment Services

Jeff Mueller

Senior Associate

303.328.2049

303.328.2010 Fax

Jeff.Mueller@marchusmillichap.com

https://www.marcusmillichap.com/

Market Watch April 2012 

COLORADO 

Decreasing unemployment, positive job growth, and optimistic consumer confidence point to an improving regional economy 

A recent report from Beacon Hill Institute ranks Colorado as the third-most economically competitive state. With employment growth on the rise, an increase in home sales, and more than twice the number of residential building permits than the same time last year, Metro Denver’s economy is climbing steadily out of post-recession lows, according to data compiled by the Metro Denver Economic Development Corporation (Metro Denver EDC) in its Monthly Economic Summary for April 2012.

Colorado's 1-year job gain among best in U.S.

Colorado's non-farm payroll jobs rose 2.2 percent in February from a year earlier, with only five states scoring a higher one-year job growth rate, according to U.S. Labor Department data released Tuesday.

Denver 24th fastest-growing metro area in U.S.

Denver was the 24th fastest-growing metro area in the nation between 2010 and 2011, according to new population estimates Thursday from the U.S. Census Bureau.

Oil field housing factory opens southeast of Loveland 

JOHNSTOWN - A company that provides housing for thousands of workers in oil fields and other remote locations built its first modular unit this week at its new factory southeast of Loveland. On Thursday, PTI Group USA officially reopened the 103,000-square-foot facility south of Colorado 60 and west of Interstate 25 formerly used by Barvista Homes to manufacture modular homes. 

NATIONAL 

$30M Opens Doors in Manufactured Homes for FCP 

CHEVY CHASE, MD-Federal Capital Partners, a company that has made a name for itself in the Mid-Atlantic for its savvy, value-add investments in multifamily, is branching out into a new asset class--manufactured housing. The company has acquired a stake in a 1,358-pad manufactured home portfolio located in North Carolina, Maryland and Pennsylvania for $29.5 million. The portfolio, which is 88% leased, will be owned by a newly created joint venture between FCP and the portfolio’s current owner, Horizon Land Co

Economists: Sluggish recovery here to stay

NEW YORK (CNNMoney) -- The recovery is still chugging along at a sluggish pace, and unfortunately, it looks like it may stay that way for a while. Economists surveyed by CNNMoney predict the unemployment rate will slip to 8% by the end of the year, not much of an improvement from the current 8.2% rate.

Morningstar: 47% of maturing CMBS loans failed to pay off 

Forty-seven percent of the commercial mortgage-backed securities loans maturing in March failed to pay off on time, according to credit ratings agency Morningstar Inc. The firm said $1.7 billion in CMBS loans were slated to mature in March. Of those loans, approximately $780 million, or 47%, did not pay off on time. 

The Early Phase of Real Estate Recovery

We consider real estate to be in the early phase of a cyclical recovery. After a hiring slump in mid-2011, the job market has begun to show signs of strength, as the unemployment rate continued declining in the first quarter of 2012.Real estate investment performance continues to display favorable conditions, a result of historically low borrowing rates and a modest inflationary outlook. Very limited new supply and rising demand is buoying real estate fundamentals for most property types. 

Fannie, Freddie set new short sale timelines 

Fannie Mae and Freddie Mac will require mortgage servicers to make decisions on short sales under new timelines beginning this June. Servicers must review and respond to a borrower within 30 days of receiving all  documentation. According to guidance released Tuesday, the servicer can take up to 60 days on a decision if negotiations with mortgage insurers or other stakeholders linger. 

CMBS Delinquencies Spike, But Outlook for the Year Remains Stable 

The 30+ days delinquency rate for U.S. CMBS loans climbed a whopping 31 basis points in March to 9.68 percent, according to research firm Trepp LLC. The jump marked the second largest monthly delinquency increase since July 2011 and contrasted drastically with February, when CMBS delinquencies posted a monthly decrease of 15 basis points.