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SMALL COMMERCIAL MORTGAGES TOP $34 BILLION IN LATEST PERIOD

Stamford, CT – December 14, 2005 – Small balance commercial loan originations rose to $34.3 billion in the second quarter of the year as small property investors and small business owners continued to finance properties at an accelerated pace. This volume was 14% above the level of the prior quarter according to real estate research firm, Boxwood Means, Inc., representing the fifth consecutive quarter of production exceeding $30 billion.

"The small loan space continues to show strong originations flow," suggested Randy Fuchs, principal of Boxwood Means. "It may lack the frothiness associated with the capital inflows of the larger institutional market, but that’s part of the reason why this small loan market remains so attractive. It’s still very fragmented, inefficient and heavily dependent on relationships."

In the period, refinance loans, in particular, increased sharply by 20.5%. These loans accounted for 67% of total originations as property owners continued to extract equity in a still favorable rate environment. Meanwhile, sales of small commercial and multi-family properties rose, as $13.9 billion of properties traded hands. During the first six months of 2005, nearly 40,000 individual transactions were consummated across the U.S.

Based on preliminary analysis, Boxwood estimates that total originations will eclipse $60 billion for the remaining two quarters of the year, thereby producing volume of approximately $125 billion for the entire year.