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

Ladder Eyes Horizontal Risk-Retention Strategy; Conduit Generates 3.06 Percent Margin in 2016

Monday, 27 February 2017

Ladder Capital Corp. generated $18 million of profit, for a margin of 2.71 percent, by securitizing $663.8 million of mortgages during the latest quarter, bringing its profit margin from its conduit business for the year to 3.06 percent. Meanwhile, it would like to structure a CMBS deal, backed solely by its loans, and in which it would retain a 5 percent horizontal risk piece.

Friday, 24 February 2017

Last year, $502 billion of commercial mortgages were originated, according to the Mortgage Bankers Association. While that was down a tad from a year earlier, the trade group expects volumes to improve this year and next, by 2 percent and 3 percent, respectively. Driving its forecast is the expectation that the U.S. economy will remain healthy and interest rates won't get out of hand.

Wells Fargo Lends $170Mln Against Manhattan's 10 East 53rd St.

Thursday, 23 February 2017

Wells Fargo Bank has provided $170 million of floating-rate financing against 10 East 53rd St., a 393,640-square-foot office and retail property in the Plaza District of Manhattan. The loan is designed to allow the property's owner, a venture of SL Green Realty Corp. and CPP Investment Board, to bring it to stabilization.

MRP Selected as Winning Bidder for Downtown Philadelphia Office

Wednesday, 22 February 2017

The buzz is that MRP Realty has been selected as the winning bidder for Three Parkway in downtown Philadelphia. The 561,631-square-foot office property would be the fourth in the city for the Washington, D.C., real estate investment and management firm.

Tuesday, 21 February 2017

Hunt Mortgage Group, which already writes bridge loans that it retains on its balance sheet, soon will start writing long-term, fixed-rate loans that it will fund through a partnership with institutional investors. It will keep a risk piece of every loan it writes and retain servicing, providing a lending product that normally would compete against conduit lenders, but provide added flexibility.

Friday, 17 February 2017

Blackstone Property Partners is said to have agreed to buy Charles Schwab & Co.'s corporate headquarters building in San Francisco for $293 million, or $788/sf. It's buying the Schwab headquarters, a 371,825-square-foot office building at 211 Main St. in San Francisco's South Financial District, from an affiliate of CIM Commercial Trust Corp.

Vornado Capital Partners in 'Harvesting' Mode

Friday, 17 February 2017

Vornado Capital Partners, an $800 million investment vehicle controlled by Vornado Realty Trust, so far has generated $165 million of gains from the disposition of six investments it made. It's now in its "harvesting" mode and will be looking to sell four of its six remaining investments. Those six are worth $433 million.

Utility Company's Brooklyn, N.Y., HQ Offered for Sale

Thursday, 16 February 2017

A venture of Angelo, Gordon & Co. and Capstone Equities is offering for sale 30 Flatbush Ave., a 231,936-square-foot office building in downtown Brooklyn, N.Y. The property, which is triple-net leased to Consolidated Edison Inc. through at least 2022, is being offered through JLL.

Mack-Cali to Buy Portfolio of Offices in Northern New Jersey

Wednesday, 15 February 2017

Mack-Cali Realty Corp. has struck a deal to buy a portfolio of six office properties with 1.1 million square feet in Short Hills, N.J., and Madison, N.J. The properties are encumbered by two CMBS loans with a combined balance of $357.9 million that had matured. One loan, with a $270.3 million balance, was transferred to special servicing in November.

Sumitomo Lends $159.7Mln Against D.C.'s Homer Building

Tuesday, 14 February 2017

Sumitomo Mitsui Trust Bank has originated $159.7 million of floating-rate mortgage financing against the 460,000-square-foot Homer Building in downtown Washington, D.C. The loan replaced a $158 million loan that New York Life Insurance Co. had provided in 2012.

Moinian Group Taps Jonathan Chassin to Lead Lending Efforts

Monday, 13 February 2017

The Moinian Group, one of the more active developers in New York, has moved into the lending business. It's hired Jonathan Chassin, a seasoned lending-industry veteran who has originated more than $3 billion of loans, to oversee the operation, Moinian Capital Partners. It will pursue senior loans on sizable properties, primarily in New York and other markets in which Moinian has a presence.

MetLife, Wells Fargo Lend $520Mln Against L.A. Office, Retail Properties

Friday, 10 February 2017

Metropolitan Life Insurance Co. and Wells Fargo Bank have provided a total of $520 million of mortgage financing against seven office and retail properties in the Los Angeles area owned by Douglas Emmett Inc. The mortgages retired $530 million of higher-cost loans that Wells Fargo had provided in 2011.

Soft Fundamentals in N.Y. Apartment Market Hits Owners

Friday, 10 February 2017

The softening market for high-end rental apartments in New York City is taking its toll on REITs that have substantial exposures to the market. With some 6,728 units projected to be added to the Manhattan, Brooklyn and Queens market - on top of the 4,481 units that were delivered last year - owners are offering concessions. And in some cases, they're the types of concessions only given during periods of economic recession.

Rialto to Keep 5 Percent Vertical Slice of Upcoming Conduit

Thursday, 09 February 2017

Rialto Capital Advisors is retaining a 5 percent vertical strip of an upcoming CMBS conduit deal that includes loans contributed by its conduit-lending affiliate, as well as Barclays Bank and UBS. It's also buying the $855.7 million deal's B-piece.

Korean Bank Lends $115Mln Against Washington, D.C. Hotel

Wednesday, 08 February 2017

A subsidiary of KEB Hana Bank has provided a $115 million loan against the 300-room Ritz-Carlton Washington in the downtown area of Washington, D.C. The hotel is owned by a venture led by Millennium Partners. The loan is the first against a major Washington property for the Korean lender.

Ladder Eyes Horizontal Risk-Retention Strategy; Conduit Generates 3.06 Percent Margin in 2016

Monday, 27 February 2017

Ladder Capital Corp. generated $18 million of profit, for a margin of 2.71 percent, by securitizing $663.8 million of mortgages during the latest quarter, bringing its profit margin from its conduit business for the year to 3.06 percent. Meanwhile, it would like to structure a CMBS deal, backed solely by its loans, and in which it would retain a 5 percent horizontal risk piece.

Wells Fargo Lends $170Mln Against Manhattan's 10 East 53rd St.

Thursday, 23 February 2017

Wells Fargo Bank has provided $170 million of floating-rate financing against 10 East 53rd St., a 393,640-square-foot office and retail property in the Plaza District of Manhattan. The loan is designed to allow the property's owner, a venture of SL Green Realty Corp. and CPP Investment Board, to bring it to stabilization.

MRP Selected as Winning Bidder for Downtown Philadelphia Office

Wednesday, 22 February 2017

The buzz is that MRP Realty has been selected as the winning bidder for Three Parkway in downtown Philadelphia. The 561,631-square-foot office property would be the fourth in the city for the Washington, D.C., real estate investment and management firm.

Vornado Capital Partners in 'Harvesting' Mode

Friday, 17 February 2017

Vornado Capital Partners, an $800 million investment vehicle controlled by Vornado Realty Trust, so far has generated $165 million of gains from the disposition of six investments it made. It's now in its "harvesting" mode and will be looking to sell four of its six remaining investments. Those six are worth $433 million.

Utility Company's Brooklyn, N.Y., HQ Offered for Sale

Thursday, 16 February 2017

A venture of Angelo, Gordon & Co. and Capstone Equities is offering for sale 30 Flatbush Ave., a 231,936-square-foot office building in downtown Brooklyn, N.Y. The property, which is triple-net leased to Consolidated Edison Inc. through at least 2022, is being offered through JLL.

Mack-Cali to Buy Portfolio of Offices in Northern New Jersey

Wednesday, 15 February 2017

Mack-Cali Realty Corp. has struck a deal to buy a portfolio of six office properties with 1.1 million square feet in Short Hills, N.J., and Madison, N.J. The properties are encumbered by two CMBS loans with a combined balance of $357.9 million that had matured. One loan, with a $270.3 million balance, was transferred to special servicing in November.

Sumitomo Lends $159.7Mln Against D.C.'s Homer Building

Tuesday, 14 February 2017

Sumitomo Mitsui Trust Bank has originated $159.7 million of floating-rate mortgage financing against the 460,000-square-foot Homer Building in downtown Washington, D.C. The loan replaced a $158 million loan that New York Life Insurance Co. had provided in 2012.

Moinian Group Taps Jonathan Chassin to Lead Lending Efforts

Monday, 13 February 2017

The Moinian Group, one of the more active developers in New York, has moved into the lending business. It's hired Jonathan Chassin, a seasoned lending-industry veteran who has originated more than $3 billion of loans, to oversee the operation, Moinian Capital Partners. It will pursue senior loans on sizable properties, primarily in New York and other markets in which Moinian has a presence.

MetLife, Wells Fargo Lend $520Mln Against L.A. Office, Retail Properties

Friday, 10 February 2017

Metropolitan Life Insurance Co. and Wells Fargo Bank have provided a total of $520 million of mortgage financing against seven office and retail properties in the Los Angeles area owned by Douglas Emmett Inc. The mortgages retired $530 million of higher-cost loans that Wells Fargo had provided in 2011.

Soft Fundamentals in N.Y. Apartment Market Hits Owners

Friday, 10 February 2017

The softening market for high-end rental apartments in New York City is taking its toll on REITs that have substantial exposures to the market. With some 6,728 units projected to be added to the Manhattan, Brooklyn and Queens market - on top of the 4,481 units that were delivered last year - owners are offering concessions. And in some cases, they're the types of concessions only given during periods of economic recession.

Rialto to Keep 5 Percent Vertical Slice of Upcoming Conduit

Thursday, 09 February 2017

Rialto Capital Advisors is retaining a 5 percent vertical strip of an upcoming CMBS conduit deal that includes loans contributed by its conduit-lending affiliate, as well as Barclays Bank and UBS. It's also buying the $855.7 million deal's B-piece.

Korean Bank Lends $115Mln Against Washington, D.C. Hotel

Wednesday, 08 February 2017

A subsidiary of KEB Hana Bank has provided a $115 million loan against the 300-room Ritz-Carlton Washington in the downtown area of Washington, D.C. The hotel is owned by a venture led by Millennium Partners. The loan is the first against a major Washington property for the Korean lender.

Passco Eyes Broadening Mandate; Sees $1Bln of Deals in 2017

Monday, 06 February 2017

Passco Cos., among the big dogs in the structured tax-deferred exchange market, is bullish on its prospects this year. It's aiming to do $1 billion of transactions this year, a 40-percent increase from last year. It'll do that in large part through the structured tax-deferred market, but will expand beyond the apartment sector and has started dabbling in investment advisory for foreign capital.

Fiesta Mall Finally Put on Sales Block

Friday, 03 February 2017

The Fiesta Mall in Mesa, Ariz., is finally being put up for sale. The property backs an $83 million CMBS loan that has been in the hands of special servicer LNR Partners Inc. for the past four years. It recently tapped CBRE to market the troubled mall for sale.

GGP Eyes Buying, Redeveloping Vacant Anchors at its Malls

Thursday, 02 February 2017

GGP Inc. plans to spend $300 million to $400 million annually buying and redeveloping vacant anchor stores at its mall properties. The Chicago REIT, like other owners of shopping malls, has been impacted by the closure of stores by anchor tenants such as Macy's, Sears and JCPenney. It's looking at that as an opportunity.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

REITCafe

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