We have so far avoided discussing this weekend’s most tragicomic news, which undoubtedly is the Mortgage Bankers’ Association selling their headquarters for a huge loss in less than two years. The building which was acquired for $76 million was sold to CoStar for $41.25 million. How the MBA is in any way supposed to provide insight on sentiment and market perspectives after a slap in the face such as this is beyond us. At best, they should start a $2.95 newsletter titled “How to top tick the market and never look back while waiting for the Dow 36k.” The other implications of this transaction are self-explanatory. Yet courtesy of diligent readers, we have received some other very amusing information, which however focuses on the buyer in this transaction, specifically CoStar, which on its website brands itself as the “#1 Commercial Real Estate Information Company.” Apparently the validity of this branding is only as good as the (un)solicited hot tips CoStar receives every day. A letter sent out earlier by an editor of CoStar’s Watch List Group seeks to expand on the groupthink permeating the permabullish CRE investor landscape (we hope they approached Cohen and Steers with their query for an objective and unbiased perspective), with a set of questions that makes one question the validity of CoStar’s self-branded characterization.

We present the letter in its redacted entirety and request that helpful readers will provide their CRE perspectives to an otherwise confused CoStar:

From: XXXX
Sent: Monday, February 08, 2010 7:31 AM
To: XXX
Subject: Comments sought for upcoming Watch List story on CRE Loan Sales

Judging by FDIC numbers, 2009 was a huge year for sale/purchase of CRE debt. The FDIC alone sold about 3,500 CRE loans with a book value of more than $6.1 billion. That compares to CRE loans sales in 2008 of just $153 million.

I am preparing a story for an upcoming Watch List article sort capsulizing that activity. Any color or insight on any of the following points you could provide would be greatly appreciated.

How active is the market for CRE debt right now?

What is the outlook for 2010?

In a nutshell, what is the profile of the most active buyers in the market? And most active sellers?

Does there seem to be a preference for performing or nonperforming debt and does the quality dictate the type of buyers and sellers.

Does there seem to be a preference for loans by property type? And if so why?

Thanks in advance for taking the time to consider this request.

Sincerely

XXX
The Watch List Newsletter
CoStar Group

 

by Tyler Durden via zero hedge
http://www.zerohedge.com/article/costar-seeks-your-input-truth-behind-commercial-real-estate