UBS and Deutsche Bank recently approved a $1.4 billion deal to securitize a basket of commercial real estate. Securitization makes it safer for banks to lend to REITs and other real estate investors. For example, if they made a loan for $200 million, they would keep $100 on their books and securitize the other half. Good news for everybody in the deal, banks are more comfortable to loan, and it gives REITs and small real estate investors access to credit. For more info read CNBC’s Good Sign for REITs, Banks, Commercial Real Estate.
