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

Thursday, 03 May 2018

Washington Prime Hints on Giving Back Rushmore Mall, 2 Others

Written by 
Rate this item
(0 votes)

Commercial Real Estate Direct Staff Report

Rushmore Mall, an 831,040-square-foot retail property in Rapid City, S.D., is "over-levered and non-core," according to its owner, Washington Prime Group.

That's an indication that the Columbus, Ohio, REIT is willing to allow the property to be transferred to its lender, Banc of America Commercial Mortgage Trust, 2006-3, the CMBS trust that holds a $94 million loan against it.

The loan, which in 2014 was modified into a $58 million A-note and $36 million B-, or "hope," note, transferred again to special servicer KeyBank last month because of cash-flow issues that are expected to arise as a result of potential tenant vacancies.

Last year, the property was 85 percent occupied and generated $7 million of net cash flow, according to servicer data compiled by Trepp LLC. That compares with $7.7 million in 2008 and $7.2 million in 2016.

But anchor tenants Sears, which occupies 124,215 sf through September 2019, was expected to vacate its space, and Herberger's, which is in nearly 89,000 sf through January 2023, is a unit of Bon-Ton Stores Inc., which is liquidating. Its other...





weekly-call-to-action

“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“

Additional Info

  • Syndicate to Realpoint: No
  • States: South Dakota
  • Sector: Retail
  • Subject: Property Acquisitions (ACQ), Property Management (MGMT), REITS -general (REITS)
  • Deal Name: Banc of America Comm Mtg Trust 2006-3
  • Valuation: Between $50 million and $100 million
  • Private: Yes
  • bloombergDealName: BACM 2006-3
Read 617 times Last modified on Thursday, 03 May 2018

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    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
warehouse-backstage