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Friday, 12 October 2012

Square Mile Provided $68Mln of Mezz Debt for Cabi Portfolio

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Square Mile Capital Management provided a $68 million mezzanine loan that helped facilitate the recapitalization of the Cabi portfolio of 31 office properties in Southern California with 4.5 million square feet.

The New York investment manager funded the loan in partnership with USAA Real Estate Co. It is the first mezzanine loan under an effort by Square Mile to originate subordinate loans.

As reported, Blackstone Group invested $85 million in the portfolio, giving it a majority interest. SL Green Realty Corp. owns a stake as well.

In addition, a group of lenders led by New York Life Insurance Co. and Wells Fargo Bank provided $678.8 million of debt. Other lenders in the syndicate were DekaBank Deutsche Girozentrale, Westdeutsche ImmobilienBank and Muenchener Hypothekenbank.

The recapitalization values the portfolio at $831.8 million. That's roughly half the price its previous owner, Cabi Developers, paid for it in 2007. The unit of GICSA, Mexico's largest developer, had financed its acquisition with some $1.45 billion of debt, which was provided by what then was Wachovia Bank.

Wachovia sold off $650 million of mezzanine debt to a group that included Hines Interests, KBS REIT Inc. and Square Mile Capital.

The three mezzanine lenders took over the collateral portfolio in 2008, soon after Cabi was unable to make a required principal payment against the senior loan.

Late last year, Winthrop Realty Trust bought $117.9 million of subordinate debt that sat between the portfolio's $680 million of senior and mezzanine debt. It paid 82 percent of par and has since been paid off at par.

The portfolio's 31 properties consist of 59 buildings in Los Angeles, Orange County and San Diego. Among the properties in the portfolio are the Skyview Center, a 406,740-sf complex at Century Boulevard and Avion Drive in Los Angeles, and 350 South Beverly Drive, with 64,546 sf in Beverly Hills, Calif.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • States: California
  • Sector: Office
  • Subject: Mortgages/Financing (MOR)
  • 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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