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Article: In Booming Real Estate Market, Trusts Going Head-to-Head with Banks. (commercial real estate investment trusts originating commercial mortgages)
- Article from:
- American Banker
- Article date:
- January 14, 1998
- Author:
CopyrightCOPYRIGHT 1998 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The red-hot real estate lending market is attracting a new competitor- commercial mortgage real estate investment trusts.
Commercial mortgage REITs fund themselves by buying commercial mortgage- backed securities, or CMBS. They then acquire mortgages on commercial buildings.
Many commercial REITs originate loans ranging from $5 million to $10 million on existing properties.
REITs have "clearly been a factor in terms of competition on the low end of bidding," said Breck Hanson, head of real estate lending at LaSalle National Bank, Chicago. "Yet we had our biggest production year ever."
The vibrant real estate market has provided enough business ...