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

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  • Developer Eyes Refi, Potential Sale of Recently Completed Austin, Texas, Apartments

    Stratus Properties Inc. will soon determine whether to put The Santal apartment property, with 448 units near downtown Austin, Texas, on the sales block, or refinance it. The property's second phase was recently completed and should be stabilized in the coming months. When that happens, Stratus will determine whether to proceed with a sale or refinancing, which would allow it to retire $59.2 million of construction debt against the property.

    Written on Friday, 22 March 2019 13:28 Read more...
  • Long-Troubled CMBS Loan Against Retail Space in The Bronx, N.Y., Nears Refinancing

    The investment group that owns the 71,540-square-foot retail property at 300-318 Fordham Road in the Bronx, N.Y., has lined up a new mortgage for the property, which is encumbered by a modified $47.5 million CMBS loan that has been in special servicing since 2015. The new loan, said to be for about $31 million, should provide sufficient proceeds to retire the securitized loan's A-note.

    Written on Thursday, 21 March 2019 15:41 Read more...
  • REIT Focused on Manhattan Apartments Launched; Crowd Investors Targeted

    Janine Yorio, who previously oversaw development for Andre Balazs Properties, has developed a platform through which accredited investors can buy into portfolios of geographically concentrated residential properties. She's partnered with Jesse Stein, who previously had led Etre Financial Inc., to form Compound Asset Management. Its first effort is a REIT that will target Manhattan apartment properties.

    Written on Wednesday, 20 March 2019 17:49 Read more...
  • JLL to Buy HFF in $2Bln Transaction, Bolstering Capital Markets Chops

    JLL Inc. has agreed to buy HFF in a deal valued at $2 billion, creating a full-service commercial real estate behemoth. The acquisition, through which HFF shareholders will receive a combination of cash and JLL stock, will allow JLL to substantially bolster its capital markets capabilities.

    Written on Tuesday, 19 March 2019 10:29 Read more...
  • Credit Suisse, JPMorgan, Morgan Stanley Lend $900Mln for Retail Value Portfolio

    The three lenders have provided financing against Retail Value Inc.'s remaining portfolio of 38 retail properties with 14 million square feet in the United States and Puerto Rico. The loan, which pays a coupon pegged to Libor plus 250 basis points, was used to retire a mortgage that was written only last year and paid a rate of Libor plus 315 bps.

    Written on Monday, 18 March 2019 11:13 Read more...
  • Pebblebrook Could Sell Up to $900Mln of Hotels in Next 18 Months

    The Bethesda, Md., company, which started paring its portfolio following its purchase of LaSalle Hotel Properties, plans to continue selling select properties in order to reduce its indebtedness and improve the quality and diversity of its remaining portfolio. So far, it has sold $1.1 billion of properties and could sell up to another $900 million in the coming year and a half.

    Written on Friday, 15 March 2019 17:07 Read more...
  • Morgan Properties Pays $890.5Mln for 10 Pa., Va. Apartments; Becomes Top Dog in Pa.

    Morgan Properties has paid $890.5 million for 10 apartment properties with 4,130 units in the Philadelphia and northern Virginia suburbs of Washington, D.C. The properties were purchased from Lone Star Funds. The Pennsylvania properties increased the company's portfolio in the state to 9,300 units, making it the commonwealth's big kahuna.

    Written on Thursday, 14 March 2019 15:16 Read more...
  • KKR Launches Follow-Up Fund to Pursue CMBS B-Pieces

    KKR & Co. has started raising its second CMBS B-piece investing vehicle. The fund, KKR Real Estate Credit Opportunity Partners II LP, would be a follow-up to Partners I, through which the New York REIT had raised $1.1 billion of equity commitments in 2017. That fund likely is reaching its capacity.

    Written on Wednesday, 13 March 2019 17:16 Read more...
  • UBS Lends $240Mln Against Colonnade Office Complex Near Dallas

    UBS has provided $240 million of financing against the 1.1 million-square-foot Colonnade office complex in the Dallas suburb of Addison, Texas. A $63 million subordinate piece of the financing was syndicated to EverWest Real Estate Investors. The debt allowed for the defeasance of a $152.4 million CMBS loan that was securitized six years ago.

     

    Written on Tuesday, 12 March 2019 16:30 Read more...
  • Special Servicer Selling Troubled CMBS Loan; Comes Under Fire from Controlling-Class Holder

    Midland Loan Services has agreed to sell the A1 piece of a distressed $107.8 million CMBS loan against a northern California office property. But evidently it didn't widely market the note, nor did it determine its fair value. That prompted the holder of the controlling class from one of the deals to object, arguing that the sale could result in an outsized loss to the trust holding the loan's A2 piece.

     

    Written on Monday, 11 March 2019 10:31 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

 

RCA CPPI

 

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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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