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

Baltimore-Area Apartment Portfolio Hits Sales Market

Thursday, 02 July 2015

Standard Portfolios LLC is offering for sale four apartment properties with 1,587 units in the Baltimore area. The Arcadia, Calif., firm, which is funded by equity from Chinese investors, has hired CBRE to market the portfolio, which could sell for $167 million, or about $105,000/unit. The sales price would result in a capitalization rate of 6.1 percent.

1H Volume Hits $52.4Bln; Deutsche Bank Dominates Once Again

Wednesday, 01 July 2015

A total of 62 private-label CMBS deals totaling $52.4 billion were issued during the first half, with 60 percent of that volume comprised of conduit transactions. Issuance has been dominated by Deutsche Bank, which participated as bookrunner on 13 deals totaling $10.9 billion, or 20.8 percent of the total volume.

Affiliate of New York Mortgage Trust Registers to Launch IPO

Tuesday, 30 June 2015

RB Multifamily Investors LLC, a lender affiliate of New York Mortgage Trust Inc., is planning to launch an initial public offering of shares and convert itself to REIT status. It will continue to focus on investments in the multifamily sector, but will not wholly own any properties.

Monday, 29 June 2015

Prudential Insurance Co. of America has provided $150 million of fixed-rate financing against Tower 67, a 449-unit apartment building in the Upper West Side area of Manhattan. The debt was used to defease a $100 million loan that was securitized through Citigroup Commercial Mortgage Securities Inc., 2006-C5.

Terra Capital Eyes $1Bln Fund; Taps Public Market

Friday, 26 June 2015

Terra Capital Partners is in the market to raise up to $1 billion for a commercial property debt investment fund, and it's tapping the public equity markets to do so. Its Terra Income Fund 6 Inc. would be the first lending vehicle to be structured as a business development company, or BDC.

South Florida Retail Property Offered for Sale

Thursday, 25 June 2015

A venture of Joseph Cogen and Gertz Builders & Developers Inc. is offering for sale the Southern Palm Crossing Shopping Center, a 339,648-square-foot retail property in Royal Palm Beach, Fla. The buzz is that the property, which is being marketed by CBRE, could sell for more than $100 million.

Parkway Venture Offers for Sale 7000 Central Park Office Building in Atlanta

Wednesday, 24 June 2015

A venture led by Parkway Properties Inc. is offering for sale 7000 Central Park, a 415,324-square-foot office building in the central perimeter submarket of Atlanta. The property, at 7000 Central Parkway NE, could sell for more than $85 million. Cushman & Wakefield has the assignment.

Wednesday, 24 June 2015

So far this year, $47.7 billion of private-label CMBS has priced. But another five deals, including four conduits, totaling nearly $5 billion, are in the near-term pipeline and awaiting to price. If they price before next Tuesday, the first half will have seen $52.4 billion of domestic issuance, up nearly 30 percent from the same period a year ago.

Beacon Offers for Sale Boston's 230 Congress St.

Tuesday, 23 June 2015

Beacon Capital Partners is offering for sale 230 Congress St., a 152,259-square-foot office building in Boston's Financial District. The Boston investment manager has hired JLL to market the 12-story property, which could sell for $80 million, or about $526/sf. The sales price would result in a capitalization rate of about 5 percent.

Monday, 22 June 2015

Lone Star Funds, which just recently raised $5.8 billion for an opportunistic investment fund, has struck a deal to buy most of Home Properties Inc. in a deal valued at $7.6 billion. The Dallas investment manager will pay $75.23 for every outstanding Home Properties common share, and assume the REIT's $2.5 billion of indebtedness. Goldman Sachs is lending $6.1 billion.

JPMorgan Offers for Sale Upscale Bergen County, N.J., Apartments

Friday, 19 June 2015

JPMorgan Asset Management is offering for sale the Brownstones at Englewood South, a 350-unit apartment property with 12,521 square feet of retail space in Englewood, N.J. The upscale property, at 73 Brownstone Way, could sell for about $115 million, or $328,571/unit. That would result in a capitalization rate of about 5 percent. HFF has the assignment.

Varde Launches First-Time Effort to Fund New Loan Originations

Thursday, 18 June 2015

Varde Partners, a long-time investor in distressed loans on the secondary market, is shifting some of its focus to new originations. It isn't planning to gear up an originations platform. Rather, it will be funding loans originated by others. It will use some of the $500 million of capital it raised through its latest fund. Its focus would be solely on loans with small balances, which it views as an underserved market.

Credit Agricole-Led Group Lends $180Mln Loan Against Manhattan's 1375 Broadway

Wednesday, 17 June 2015

A group led by Credit Agricole Corporate and Investment Bank has provided $180 million of floating-rate financing against 1375 Broadway, a 510,000-square-foot office building in the Garment District of Manhattan that recently was acquired by Westbrook Partners for $310 million.

Post-Crisis Golden Years Over for Real Estate Dealmaking

Wednesday, 17 June 2015

 

The "golden years" for real estate deal-making that began in the wake of the credit markets dislocation in 2008 have ended. Investors, who had grown accustomed to buying properties that then quickly escalated in value, now have to be far more discerning.

Small Investment Managers Face Growing Challenge Raising Institutional Equity

Tuesday, 16 June 2015

 

A difficult market for raising equity by investment managers that have less than $1 billion of assets under management is destined to grow even tougher. Those managers are finding it tough to reach the equity targets they set for funds they're trying to raise, while larger managers are often exceeding their targets.

Baltimore-Area Apartment Portfolio Hits Sales Market

Thursday, 02 July 2015

Standard Portfolios LLC is offering for sale four apartment properties with 1,587 units in the Baltimore area. The Arcadia, Calif., firm, which is funded by equity from Chinese investors, has hired CBRE to market the portfolio, which could sell for $167 million, or about $105,000/unit. The sales price would result in a capitalization rate of 6.1 percent.

1H Volume Hits $52.4Bln; Deutsche Bank Dominates Once Again

Wednesday, 01 July 2015

A total of 62 private-label CMBS deals totaling $52.4 billion were issued during the first half, with 60 percent of that volume comprised of conduit transactions. Issuance has been dominated by Deutsche Bank, which participated as bookrunner on 13 deals totaling $10.9 billion, or 20.8 percent of the total volume.

Affiliate of New York Mortgage Trust Registers to Launch IPO

Tuesday, 30 June 2015

RB Multifamily Investors LLC, a lender affiliate of New York Mortgage Trust Inc., is planning to launch an initial public offering of shares and convert itself to REIT status. It will continue to focus on investments in the multifamily sector, but will not wholly own any properties.

Terra Capital Eyes $1Bln Fund; Taps Public Market

Friday, 26 June 2015

Terra Capital Partners is in the market to raise up to $1 billion for a commercial property debt investment fund, and it's tapping the public equity markets to do so. Its Terra Income Fund 6 Inc. would be the first lending vehicle to be structured as a business development company, or BDC.

South Florida Retail Property Offered for Sale

Thursday, 25 June 2015

A venture of Joseph Cogen and Gertz Builders & Developers Inc. is offering for sale the Southern Palm Crossing Shopping Center, a 339,648-square-foot retail property in Royal Palm Beach, Fla. The buzz is that the property, which is being marketed by CBRE, could sell for more than $100 million.

Parkway Venture Offers for Sale 7000 Central Park Office Building in Atlanta

Wednesday, 24 June 2015

A venture led by Parkway Properties Inc. is offering for sale 7000 Central Park, a 415,324-square-foot office building in the central perimeter submarket of Atlanta. The property, at 7000 Central Parkway NE, could sell for more than $85 million. Cushman & Wakefield has the assignment.

Beacon Offers for Sale Boston's 230 Congress St.

Tuesday, 23 June 2015

Beacon Capital Partners is offering for sale 230 Congress St., a 152,259-square-foot office building in Boston's Financial District. The Boston investment manager has hired JLL to market the 12-story property, which could sell for $80 million, or about $526/sf. The sales price would result in a capitalization rate of about 5 percent.

JPMorgan Offers for Sale Upscale Bergen County, N.J., Apartments

Friday, 19 June 2015

JPMorgan Asset Management is offering for sale the Brownstones at Englewood South, a 350-unit apartment property with 12,521 square feet of retail space in Englewood, N.J. The upscale property, at 73 Brownstone Way, could sell for about $115 million, or $328,571/unit. That would result in a capitalization rate of about 5 percent. HFF has the assignment.

Varde Launches First-Time Effort to Fund New Loan Originations

Thursday, 18 June 2015

Varde Partners, a long-time investor in distressed loans on the secondary market, is shifting some of its focus to new originations. It isn't planning to gear up an originations platform. Rather, it will be funding loans originated by others. It will use some of the $500 million of capital it raised through its latest fund. Its focus would be solely on loans with small balances, which it views as an underserved market.

Post-Crisis Golden Years Over for Real Estate Dealmaking

Wednesday, 17 June 2015

 

The "golden years" for real estate deal-making that began in the wake of the credit markets dislocation in 2008 have ended. Investors, who had grown accustomed to buying properties that then quickly escalated in value, now have to be far more discerning.

Small Investment Managers Face Growing Challenge Raising Institutional Equity

Tuesday, 16 June 2015

 

A difficult market for raising equity by investment managers that have less than $1 billion of assets under management is destined to grow even tougher. Those managers are finding it tough to reach the equity targets they set for funds they're trying to raise, while larger managers are often exceeding their targets.

Extra Space Storage to Pay $1.3Bln for Non-Traded REIT

Monday, 15 June 2015

Extra Space Storage Inc. has struck a deal to buy SmartStop Self Storage Inc. for $1.3 billion, in a deal that would further bolster one of the country's largest self-storage companies. SmartStop is a non-traded REIT that was formed in 2007. The $13.75/share price Extra Space is paying compares with the $10.81/share net asset value that SmartStop recently pegged on its shares.

Passco Sells L.A. Retail Property; Pays Off $61.8Mln CMBS Loan

Friday, 12 June 2015

Laurus Corp. has purchased the Promenade at Howard Hughes Center, a 248,036-square-foot retail property in Los Angeles, for about $100 million, or $403/sf. It bought the property, part of the 1.6 million-sf Howard Hughes Center mixed-use complex, from Passco Real Estate Enterprises, which has paid off its $61.8 million CMBS loan.

Arcapita Sells Seniors-Housing Portfolio for $640Mln

Wednesday, 10 June 2015

The Bahrain investment company has sold a portfolio of 16 seniors-housing properties with about 3,637 units to NorthStar Healthcare Income Inc. Arcapita had acquired the portfolio in 2005.

Real Estate Fund Managers Keen on Debt

Wednesday, 10 June 2015

According to London research firm Preqin, 31 investment funds raised $22.4 billion of equity last year. A total of 19 of those vehicles, with $13.7 billion, were focused on U.S. investments.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4

 

 

MOODY'S/RCA CPPI

 

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cmbs2spreads

 

Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4

 

 

 

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