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

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  • Select Income Eyes Spinning Off Industrial Properties

    Select Income REIT, long frustrated that stock investors have improperly discounted its common shares, is spinning off what could be its most valuable assets - 266 industrial properties with 28.5 million square feet, mostly in Hawaii. The REIT, Industrial Logistics Properties Trust, would own just more than 40 percent of all the industrial space on Oahu.

    Written on Wednesday, 22 November 2017 13:52 Read more...
  • As Congress Passes HVCRE Clarification, Regulators Devise New Loan Rule

    Just as Congress was moving forward with a legislative proposal to clarify the definition of a high-volatility commercial real estate, or HVCRE loan, the three banking regulators unveiled a proposed rule that could make those efforts moot. They've proposed a new category of loans, high-volatility acquisition, development and construction loans, in an effort to eliminate the HVCRE rule's vagueness.

    Written on Tuesday, 21 November 2017 16:37 Read more...
  • Non-Traded REITs Raised Only $782Mln in 3Q

    Non-traded REITs raised only $782 million of equity during the third quarter, their weakest showing in at least 13 years, bringing the total raised so far this year to $3 billion. It's likely that capital-raising for the full year will fall well below last year's dismal $4.8 billion raised.

    Written on Monday, 20 November 2017 16:41 Read more...
  • Kalikow's Gamma Real Estate Poised to Write $300Mln of Loans in 2017

    Gamma Real Estate, the real estate investing arm of the Kalikow family, which stepped back into the alternative lending space four years ago, is poised to originate at least $300 million of loans this year. The company had pulled back from the lending business in 2008, but returned to it in 2013. It's originated nearly $1 billion of loans since then.

    Written on Friday, 17 November 2017 15:54 Read more...
  • Proposed Rule May Decrease Chinese Investments in U.S. Properties

    China's economic planning agency has issued a draft rule that could lead to fewer Chinese companies investing in United States commercial properties. That would be on top of previous restrictions the Chinese government had placed on overseas property deals. Last year, the Chinese invested a record $19.2 billion in U.S. property, the most among foreign investors.

    Written on Thursday, 16 November 2017 16:17 Read more...
  • New York Investor Launches Blind-Pool Offering Targeting Retail Investors

    Mascia Development LLC, a New York real estate investor that had syndicated equity interests in properties to retail investors, is forming a company that will be capitalized by retail investors and would invest in office, retail and industrial properties in secondary and tertiary markets. The company would be similar to the non-traded REITs launched by more-established crowdfunding platforms.

    Written on Wednesday, 15 November 2017 16:05 Read more...
  • CMBS Conduit Spreads Continue Tightening

    CMBS conduit spreads have continued to benefit from healthy demand and the thinking that after the latest surge of issuance is done, supply could peter out. Yesterday, Deutsche Bank and Citigroup priced the benchmark class from their CD, 2017-CD6, transaction at a spread of 75 basis points more than swaps - the tightest level since July 2014.

    Written on Tuesday, 14 November 2017 16:33 Read more...
  • Single-Asset REIT Offers Individuals Chance to Invest in St. Regis Aspen Resort

    The owners of the St. Regis Aspen Resort in Aspen, Colo., are launching a REIT that would provide individual investors the opportunity to own a stake in the five-star resort. Aspen REIT Inc. is seeking to raise about $33.5 million through a stock offering, thus giving retail investors access to an asset that traditionally has been reserved only for institutional and high net-worth investors.

    Written on Monday, 13 November 2017 11:56 Read more...
  • Freddie Mac on Way to Another Record-Breaking Year of Lending, Securitization

    Freddie Mac's multifamily operation is well on its way to another record-breaking year, in terms of financing and securitization activity. So far, it has issued $50.4 billion of bonds backed by loans against apartment properties - approaching the $51.2 billion it had securitized last year, when it funded a record $56.8 billion of loans.

    Written on Friday, 10 November 2017 16:35 Read more...
  • Loan Demand Jumps in 3Q by 21 Percent from Last Year

    Loan demand has increased substantially during the second half of the year, with the Mortgage Bankers Association reporting that originations during the third quarter were 21 percent higher than they were a year ago and 8 percent higher than the second quarter. Lending volumes are typically correlated with property sales. Property owners are opting to refinance instead of sell.

    Written on Thursday, 09 November 2017 15:36 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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

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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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