Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

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  • Hotel Fundamentals Decelerate in Face of Heavy Supply

    Revenue per available room, the key metric for the hotel industry, was up in the third quarter by 0.8 percent when compared to a year ago, to $94.42, according to STR. That represented a slow-down from the second quarter, when RevPAR increased by 1.1 percent. That slowdown should continue as increasing numbers of rooms come online.

    Written on Friday, 08 November 2019 15:27 Read more...
  • Wells Fargo Writes $178.8Mln Freddie Loan Against Manhattan Apartment Property

    Wells Fargo Bank has originated $178.8 million of Freddie Mac financing against the 356-unit Chelsea Centro apartment property in Manhattan. The loan allowed the property's owner, TF Cornerstone of New York, to retire $120.8 million of Freddie debt that was securitized through FREMF, 2010-K7.

    Written on Thursday, 07 November 2019 12:06 Read more...
  • Safehold Launches Program to Buy, Fix Archaic Ground Leases

    Safehold Inc. has developed a program through which it buys fee interests in properties that might have archaic lease terms and restructures them to make them more palatable to the property owners as well as prospective lenders. A potential hotbed of opportunity is in Manhattan, where a number of ground leases are structured with onerous rent resets.

     

    Written on Wednesday, 06 November 2019 16:52 Read more...
  • CBL Eyes Refinancing $150.6Mln of CMBS Loans on 3 Malls

    CBL & Associates Properties Inc. has started an effort to refinance $150.6 million of mortgage debt against three of its shopping centers. The three loans, securitized through GS Mortgage Securities Corp. II, 2010-C1, don't come due until next July and August. The REIT has been in talks with Goldman Sachs, which had provided the existing loans, and has spoken with other potential lenders.

    Written on Tuesday, 05 November 2019 16:41 Read more...
  • Swiss Pension Fund Adviser Lines Up $102.2Mln of Financing for 2 Manhattan Office Acquisitions

    AFIAA Foundation for International Real Estate Investments has secured $102.2 million of financing to help fund its acquisition of two office buildings with 251,174 square feet in Manhattan. ING Capital lent $50 million against 158 West 27th St., while Allianz Life Insurance Co. provided a $52.2 million loan against 45 West 45th St.

    Written on Monday, 04 November 2019 14:58 Read more...
  • CMBS Loan Defeasance Volume Already Tops All of Last Year

    The volume of CMBS loans that have been defeased, or replaced by government securities, already has exceeded all of last year's volume. Through September, 694 loans with a balance of $10.89 billion have been defeased. That compares with the $10.88 billion volume for all of last year. Volumes will keep climbing, thanks to continued low interest rates.

    Written on Friday, 01 November 2019 16:10 Read more...
  • CMBS Conduit Lenders Get More Competitive in Multifamily Lending Business

    CMBS conduit lenders are having more success originating loans against multifamily properties, in large part because of how the Federal Housing Finance Agency has revamped the lending caps it imposes on Fannie Mae and Freddie Mac. So far this year, 12.25 percent of all conduit loans have been backed by apartment properties. That's up from 10.74 percent for all of last year.

    Written on Thursday, 31 October 2019 14:44 Read more...
  • Equity Commonwealth Eyes Possible Sale of 4 Office Buildings

    Equity Commonwealth, which took a hiatus from selling properties earlier this year, plans to put four of its seven office buildings, which have a total of 2.5 million square feet, up for sale by the end of the year. The properties it's identified as potential sales candidates are in Bellevue, Wash., Boston and Washington, D.C.

    Written on Wednesday, 30 October 2019 16:07 Read more...
  • Taconic Buys CMBS Loans Against 2 Conn. Offices via Fair-Value Option

    A venture led by Taconic Capital Partners has exercised its controlling-class rights and purchased what originally had been $71 million of CMBS debt against 50 and 64 Danbury Road, a pair of office buildings with a total of 265,142 square feet in Wilton, Conn. The trust holding the debt recovered $34.5 million in the sale, which resulted in a $35.8 million loss.

     

    Written on Tuesday, 29 October 2019 15:27 Read more...
  • Prologis Buying Liberty Property; Plans to Sell $3.5Bln of Properties

    Prologis Inc. has agreed to acquire Liberty Property Trust in an all-stock deal valued at $12.6 billion, including the assumption of the Wayne, Pa., REIT's $3.4 billion of debt. The deal is expected to be completed early next year. The price Prologis is paying results in a 4.7 percent capitalization rate.

    Written on Monday, 28 October 2019 15:42 Read more...

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

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REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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