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Monday, 03 March 2014

Blackstone to Pay SL Green $100Mln for Remaining Stake in Cabi Portfolio

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A Blackstone Group investment fund has agreed to pay SL Green Realty Corp. $100 million for the 43.74 percent stake it did not already own in a portfolio of 28 Southern California properties with 3.7 million square feet.

The properties are what's left of the former Cabi portfolio that SL Green, a New York REIT, and Blackstone's Real Estate Partners VII fund took in 2012 from the portfolio's mezzanine lenders, which included Hines Interests, KBS REIT Inc. and Square Mile Capital.

The portfolio is encumbered by $481.3 million of debt that comes due in September. So Blackstone's deal values it at $709.92 million.

The portfolio originally was comprised of 31 properties with 59 buildings in Los Angeles, Orange County, Calif., and San Diego. Their previous owner, the Cabi Developers unit of Mexican developer GICSA, had purchased them in 2007 for $1.65 billion. It later fell behind on $1.5 billion of debt, and lost the portfolio in 2009 to the syndicate that held the mezzanine debt.

The SL Green-Blackstone venture had since 2012 sold three properties from the portfolio for $223 million.

That same year, the venture lined up $800 million of financing from a group of lenders that included Wells Fargo Bank and New York Life Insurance Co. against the entire 31-property portfolio. The financing has shrunk, in part as a result of the sale of the three properties.

SL Green plans to redeploy proceeds from the sale to Blackstone into investments in its main target market, New York.

Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.



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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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