July 25, 2008

Multi-Family Loan Programs > $3 Million

Agency Lenders Portfolio Lenders*
Term Leverage Max. Interest Rates Leverage Max. Interest Rates
5 Yr. 80% 6.25% to 6.40% 75% 6.05% to 6.25%
7 Yr. 80% 6.26% to 6.41% 75% 6.40% to 6.65%
10 Yr. 80% 6.40% to 6.61% 75% 6.55% to 6.85%
15 Yr. 80% 6.82% to 7.42% 75% 6.85% to 7.35%
*Rates based on Act/360
Multi-Family Loan Programs < $3 Million
Fixed Rate Agency Lenders Portfolio Lenders*
Term Leverage Max. Interest Rates Leverage Max. Interest Rates
3 Yr. 80% 6.19% to 6.58% 75% 5.90% to 6.25%
5 Yr. 80% 6.17% to 6.55% 75% 6.05% to 6.35%
7 Yr. 80% 6.19% to 6.49% 75% 6.40% to 6.65%
10 Yr. 80% 6.33% to 6.63% 75% 6.55% to 6.85%
15 Yr. 80% 6.89% to 7.80% 75% 6.85% to 7.35%
*Rates based on Act/360
Commercial Loan Programs
Fixed Rate Portfolio Lenders* Index Rate as of 7/25/2008

Term Leverage Max. Interest Rates

5-Year Treasury: 3.49% 10-Year Treasury: 4.12%
5 Yr. 75% 6.25% to 6.55%
5-Year Swap: 4.34% 10-Year Swap: 4.79%
7 Yr. 75% 6.45% to 6.65%
Prime: 5.00% LIBOR: 3.11%
10 Yr. 75% 6.65% to 6.90%
15 Yr. 75% 6.95% to 7.45%
Bridge Floating Leverage Max. Spread Over Libor
Stabilized 75% 225 to 300
Re-Position 80% 275 to 350
(*Portfolio Lenders include Banks, Life Insurance Companies and Credit Unions)
Economic Commentary

7-25-08 Interest rates rose across the board 6 to 10 basis

points this week and the U.S. Treasury yield bounced back
today closing at 4.1 percent as investors reacted positively to
positive economic news. New home sales dropped less than
forecast and consumer confidence surprisingly was up during
the week, increasing speculation that the Fed may increase
rates later this year. Banks continued to tighten credit
standards as their loan allocations fill and they have a difficult
time selling loans.

Recent Transactions
Automotive Retail Multi-Family Mixed Use
STNIL Strip Center Student Housing Multi-Family/Retail
Montgomery, IL Lee's Summit, MO Tucson, AZ Seattle, WA
$1,1400,000 $1,698,559 $3,500,000 $2,100,000
6.26% Interest Rate 6.20% Interest Rate 5.94% Interest Rate 6.18% Interest Rate
120-mos. Term/360-mos. Amort. 10-mos. Term/360-Amort. 120-mos.Term/360-mos Amort. 360-mos. Term/360-mos. Amort.

For more information, contact:

William Hughes
Senior Vice President/Managing Director
Newport Beach, CA
Office: (949) 851-3030
whughes@marcusmillichap.com