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

Monday, 02 October 2017

CMBS Loan Against Newark, N.J., Offices Purchased Through Fair-Value Option

The $121.2 million of CMBS debt against the 782,806-square-foot Two Gateway Center office building in Newark, N.J., was retired through the use of a fair-value purchase option. The loan, which was securitized through CD, 2006-CD3, had been in special servicing for nearly two years.

Commercial Real Estate Direct Staff Report

The $121.2 million of CMBS debt against the 782,806-square-foot Two Gateway Center office building in Newark, N.J., was retired through the use of a fair-value purchase option.

As reported, the loan, which was securitized through CD, 2006-CD3, had been in special servicing for nearly two years, transferring when occupancy and cash flow, had dropped. Prudential Financial Inc. had substantially reduced its then-327,463-sf footprint at the property and the Port Authority of New York and New Jersey moved out of the 112,145 sf it had occupied.

C&K Properties initially was thought to have orchestrated the loan's discounted pay-off. But that evidently wasn't quite the case. Instead, affiliates of Axonic Capital and Taconic Capital Advisors, which are thought to have held subordinate bonds from the CMBS transaction, exercised their fair-value option to buy the loan. CMBS trusts are structured to allow the owner of a deal's most...





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“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

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    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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