Franklin Square Capital Partners, a Philadelphia investment manager that sponsors a number of business development companies, has launched a mortgage REIT that will fund a variety of debt investments in commercial real estate, including bridge loans and CMBS. It has taped Rialto Capital Management as sub-adviser, putting it in charge of originating loans and making other investments.
Pennsylvania REIT, which has been refining its portfolio of retail properties since 2012, is now looking to sell interests in a number of its properties in order to generate proceeds to fund their redevelopment. It's been taking prospective investors on tours of its properties, both its top-flight and lesser-quality assets.
Investment manager TPG Capital, which has some $72 billion of assets, including real estate, under management, is taking its real estate investment operation public. The company, TPG Real Estate Finance Trust Inc., will join a growing list of publicly funded entities that are investing in relatively short-term loans against substantial commercial properties.
Oaktree Capital Group has raised some $700 million for a follow-up investment fund that will pursue investments in a variety of real estate debt instruments, including mortgages, mezzanine loans and CMBS. The fund's capital-raising target is said to be north of $1 billion.
A venture of Rockpoint Group and Sawyer Realty Holdings is offering for sale a portfolio of four apartment properties with 2,729 units in the Baltimore area. The portfolio, which is being offered through CBRE, could sell for $260 million, or $95,273/sf. Offers are being solicited only for the portfolio in its entirety.
Goldman Sachs has raised nearly $1 billion for its latest real estate debt-investment vehicle, Broad Street Real Estate Credit Partners III LP. The fund would be a follow-up to Credit Partners II, through which the investment bank's merchant banking arm three years ago had raised an estimated $1.8 billion.
CWCapital Asset Management, among the most active special servicers in the CMBS world, is proactively turning to its asset management system, which it has been perfecting over the years, to generate income as the volume of loans it handles is expected to shrink.
A venture of Madison Capital and KKR & Co. is offering for sale the 833,000 square feet of office space at the Sullivan Center mixed-use building in Chicago's Central Loop. JLL has the sales assignment. The offering comes on the heels of the venture selling the building's retail space to Acadia Realty Trust.
AVG Partners, which owns the UBS Center in Stamford, Conn., has purchased the defaulted CMBS loan against the 682,327-square-foot property. The Beverly Hills, Calif., investor paid $54.2 million for the loan, which was securitized through LB-UBS Commercial Mortgage Trust, 2004-C1. That compares to the empty property's most recent appraised value of $44.4 million.
Hertz Investment Group is aiming to generate $105 million from the sale of the Bank of America Tower in Jacksonville, Fla. The property is encumbered by $79.4 million of financing, of which $35.5 million was securitized. The financing matures in July, but can be extended for up to two additional years. CBRE is offering the property.
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