A total of 613 CMBS loans with a balance of $7.8 billion were defeased this year through the end of September. Given that the pace of defeasance typically picks up during the final quarter of every year, the volume this year likely will more than double last year's $5.7 billion total.
Sansone Cos. has paid $54.5 million for the Boulevard Mall in Las Vegas and is expected to continue operating the property as a shopping mall. The property was sold by Midland Loan Services on behalf of the two CMBS trusts that held a total of $95 million of debt against it.
Northwood Investors, a New York investment manager led by John Z. Kukral, the former head of real estate at Blackstone Group, is looking to raise $800 million of equity commitments for its latest real estate investment fund, which will pursue opportunistic and value-add deals in most major property sectors.
The Panama Canal's expansion has been stirring the acquisition and development of industrial properties along East Coast port markets. Industrial development activity linked to potential demand driven by the expansion, which would allow larger container ships to pass through the canal starting some time in 2015, has been especially prominent in Baltimore and Miami.
Wells Fargo Bank and Criterion Real Estate Capital have teamed to provide $525 million of acquisition financing, allowing a Witkoff Group team to complete its $660 million, or roughly $1.1 million/room purchase of Manhattan's Helmsley Park Lane Hotel. The financing was arranged by Carlton Group.
Prices for residential development sites in Manhattan have continued to skyrocket and are now at levels that are often double what they were during the market's peak in 2007. The inflation is being driven by the ever-escalating prices paid for residential condominium units. Sites often are selling for more than $700/buildable square foot and sometimes hitting $1,000/buildable sf.
The holder of the controlling-class bonds of Banc of America Commercial Mortgage Trust, 2007-1, assigned its purchase option for a delinquent $190 million CMBS loan against the StratReal Industrial Portfolio I to a third party that bought the loan. CWCapital is special servicer for the transaction and is pursuing collection of a $2 million letter of credit tied to the loan.
Blackstone Group has rejected the offers it received for the Southfield Town Center, a 2.2 million-square-foot office building in the Detroit suburb of Southfield, Mich. The five-building property serves as collateral for a total of $233 million of debt, including a $138 million CMBS loan.
Mortgage broker Cohen Financial has agreed to be acquired by Pillar Financial, the multifamily lending arm of Guggenheim Partners, creating a vertically integrated lending operation that can originate, fund and service loans for its borrower clients. The merger will bolster the size of Cohen's servicing platform substantially.
Exeter Property Group, which has generated a 15.3 percent unleveraged internal rate of return for a fund that it started investing two years ago, is in the market seeking $675 million for a follow-up vehicle. The investment manager is projecting an unleveraged IRR of 10 percent for the new fund, Exeter Industrial Value Fund III, which is in its early marketing stages.