The Real Deal Miami

Low expectations for Federal program to help commercial real estate market

June 16, 2009 01:44PM

The Federal Reserve may have few deals for the start of its program to
aid the commercial real estate market. Today is the first monthly
deadline for investors to apply for loans to buy new commercial
mortgage-backed securities through the Term Asset-Backed Securities
Loan Facility. Today’s application deadline applies to securities
issued this year, and in late July, the Fed will start accepting
investor requests for loans to purchase older CMBS. “I would be very
surprised” if there are any deals this month, said Kevin Petrasic, a
former official at the Office of Thrift Supervision. “Unless the market
really starts to pick up within the next couple weeks, I think July is
going to be a little challenging as well.”