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Friday, 07 September 2018

Davidson Kempner Acquires 80 Percent Stake in Large Office Portfolio

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Commercial Real Estate Direct Staff Report

Davidson Kempner Capital Management has bought an 80 percent ownership stake in a portfolio of 21 office buildings with 3.8 million square feet in 12 states.

The New York investment manager bought the stake from Lexington Realty Trust, a New York REIT, in a deal that values the portfolio at $726 million. Lexington retained a 20 percent interest and will receive asset-management fees to manager the properties. The company said the sale resulted in a capitalization rate of 8.1 percent.

The properties are in Colorado, Georgia, Illinois, Missouri, North Carolina, New Jersey, Nevada, Ohio, Pennsylvania, Texas, Virginia and West Virginia. They are 98.6 percent leased and generate about $15.38/sf in rent.

The Davidson and Lexington venture obtained a $363 million mortgage that has a three-year term and pays a coupon of Libor plus 200 basis points.

As part of the deal, the venture assumed a $57.5 million loan against the...





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“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

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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: More than $150 million
  • Private: Yes
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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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