Store these nuggets away

Kenny Pratt has some interesting insights that he gleaned from the Self Storage Association Conference. The best one for me is this one on the conduit market.

"Conduit Lenders are starving (no surprise). However the conduits that are quoting deals are offering spreads of about 200 basis points over the ten-year treasury yield. That is a big spread, but the all-in rate is still less than 6.5%. Not as good as we were seeing 6 months ago, but still very low relative to historic rates. "

Yup, spreads are high. But the rates are still low from a historical perspective. But remember that you have to pay a price: the pain of going through a conduit loan.

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