The Santa Monica, Calif., REIT, which had been under pressure to sell itself, has agreed to sell a stake in eight of its shopping center properties to GIC Real Estate Pte and Heitman. The deal would generate a total of $2.3 billion of cash proceeds, which would include the refinancing or financing of a number of properties.
A venture led by Crocker Partners has been selected as the winning bidder for Paces West, a 646,471-square-foot office property in the Cumberland/Galleria submarket of Atlanta. It is said to be paying about $113 million, or about $175/sf, for the property, which should be good news for the CMBS trust that holds a modified $77.3 million loan against it.
The bank contributed $3 billion of loans to CMBS deals during the latest quarter, bringing its tally for the year to $8.1 billion, putting it in a dead heat with Deutsche Bank. Well behind the two are Morgan Stanley and Wells Fargo Bank.
A total of $22.1 billion of CMBS was issued during the third quarter. That was down nearly 20 percent from the same period a year ago. But issuance for the year is still up from last year, at $73.6 billion versus $66 billion. Deutsche Bank retains its relatively big lead among all bookrunners, with a 20.7 percent share of the market. Wells Fargo Securities, however, is advancing rapidly.
Invesco Real Estate has struck a deal to buy Jefferson Marketplace, a 281-unit apartment property in Washington, D.C.'s Shaw neighborhood. The Atlanta investment manager is buying the property, at 1550 7th St. NW, from its developer, Jefferson Apartment Group of McLean, Va., which had offered it through CBRE.
Fixed-income markets, including CMBS, took it on the chin yesterday, and helped push spreads on the latest conduit deal, COMM, 2015-CCRE26, to the widest levels in at least two years. Its BBB- class priced at a spread of 525 bps more than swaps, a level not seen since September 2012.
Blackstone Group has tapped CBRE to market for sale a portfolio of 54 foreclosed properties that it has accumulated over the years. The portfolio includes a number of properties that it assumed through its recent purchase of GE Capital Real Estate, as well as properties it has owned for nearly a decade.
Equus Capital Partners has struck a deal to sell the 771,856-square-foot East Gate Square retail property in the Philadelphia suburb of Moorestown, N.J., for $188 million, or about $244/sf. The transaction would be the largest in south Jersey since 2005.
A10 Capital, which has been originating bridge loans against middle-market properties since the capital-market's collapse, has lined up additional capital from two major investors, giving it the wherewithal to broaden its lending platform to include permanent loans. The company will write loans with terms of up to 15 years that it would keep on its balance sheet.
Etre Asset Management, which was founded three years ago to raise public equity that it would invest in individual trophy properties, has struck a deal to buy an 89 percent stake in a year-old upscale apartment property in Philadelphia. It is aiming to raise up to $35 million of equity through the sale of shares and has lined up a $52 million mortgage for the purchase from Arbor Commercial Mortgage. It would be the New York company's second such purchase agreement.
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