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

Wednesday, 18 January 2017

Hull Property Buys Kingston, N.Y., Mall, Leads to $42.1Mln Loss for CMBS Loan

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Commercial Real Estate Direct Staff Report

Hull Property Group has acquired the Hudson Valley Mall in Kingston, N.Y., for roughly $9.4 million, resolving a troubled CMBS loan at a loss of $42.1 million.

The property, with 765,465 square feet at 1300 Ulster Ave., had backed a $48.9 million loan that was securitized through CFCRE Commercial Mortgage Trust, 2011-C1. When it transferred to special servicer LNR Partners in 2015, it was the largest CMBS 2.0 loan to do so.

Hull Property, an Augusta, Ga., retail specialist, has purchased other retail centers that had backed troubled CMBS loans. Last May, for instance, it bought the Fairgrounds Square Mall in Reading, Pa., that had backed a $41 million loan securitized through Morgan Stanley Capital I Inc., 2007-IQ14.

The Hudson Valley property was purchased from Edgewater Cos., which is led by former Pyramid Cos. executives., in a deal brokered by JLL. The property was developed in 1981 by Pyramid.

Its CMBS loan was transferred to special servicing nearly two years ago because cash flow had declined as a result of a reduction in occupancy.

It was hit hard after JCPenney closed its 67,578-sf anchor store in April 2015 and Macy's closed its 120,814 sf last March. Macy's continued to pay rent until this month, while JCPenney will continue paying until October.

Their departure prompted a number of inline tenants to vacate, pushing the occupancy rate for the property's 201,429 sf of inline space to 67 percent, according to servicer data compiled by Trepp LLC. Meanwhile, tenants that occupy about a quarter of the property's space now have the option of moving out if mall sales don't improve.

A receiver, CBL & Associates Properties Inc., was appointed last June.

Tenants at the property include Sears, with 110,862 sf through September 2019; Regal Cinemas, with 41,776 sf through April, and Dick's Sporting Goods, with 41,776 sf through April.

Hull, founded in 1977 by James M. Hull, owns 14.5 million sf of retail space in the country.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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Additional Info

  • Syndicate to Realpoint: No
  • States: New York
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ)
  • Valuation: Between $25 million and $50 million
  • Private: No
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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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