The trade group has warned that another industry lobbying group, presumably the Real Estate Roundtable, is pushing for regulatory changes that could damage the CMBS market. Specifically, the Roundtable would like the rules governing CMBS to be relaxed to allow the restructuring of loans as far as five years from their maturity.

A total of $158.6 billion, or 20 percent of all securitized commercial mortgages, are on master servicer watchlists, according to Bloomberg. And 35 percent of the watchlist loans were originated in 2007. The bulk are being watched because their debt-service coverage levels are uncomfortably low.

The Philadelphia investment manager, which started investing in distressed real estate loans and properties in 1991, is looking to raise some $750 million through a non-traded REIT that will invest in similar assets. The new vehicle allows the company to raise fresh capital without concerns investors might have about its legacy assets.

The decline in retail property fundamentals continued at full throttle in the second quarter as vacancy rates hit their highest levels and rents suffered their steepest drops this decade, according to Reis Inc. Vacancies climbed by 50 basis points at shopping centers and malls, while rents fell 1.1 percent and 1.4 percent, respectively.

Another $3 billion of securitized commercial mortgages were transferred to special servicing in June, bringing the total to 2,588 loans with a balance of $39.9 billion, or 5.54 percent of the entire CMBS universe, according to Realpoint. A total of $7.8 billion of loans on General Growth Properties are included in the total.

The Chicago investment manager, which late last year sold a minority stake in itself to the Abu Dhabi government, is preparing to launch its fourth opportunistic fund. It hopes to raise up to $500 million of equity and find distressed sellers in major markets.

Island Capital Group is positioning itself to acquire Centerline Holding Co. It has struck an agreement giving it the authority to negotiate the potential restructuring of Centerline's debt with its lenders. Island is led by Andrew Farkas.

American Realty Capital Advisors, sponsor of a non-traded REIT, is offering its broker-dealer program to other non-traded REITs in an effort to encourage growth in the market. Doing so could help other REITs avoid the risks and costs, estimated at up to $20 million, in launching their own broker-dealers.

The Los Angeles investment bank is offering a portfolio of seven loans on properties occupied by grocer Winn-Dixie Stores. The portfolio has a balance of $148.5 million. American Capital Strategies had acquired the loans two years ago from Wachovia Bank.

A Houston owner of cell-phone towers is tapping the CMBS market to raise $250 million that it is using to refinance a 2004 CMBS issue that is slated to mature in December. The bond transaction, which is being managed on an agency basis by Calyon Securities, would be the first non-agency CMBS deal since June 2008.