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

Admiral Capital Pursuing Core-Plus Office Properties in Suburban Markets

Friday, 20 September 2019

Admiral Capital Group, a San Antonio investment manager led by former National Basketball Association star David Robinson, is shifting its focus to pursue primarily core-plus deals rather than value-add opportunities. It's targeting properties in suburban U.S. markets that are at least 75 percent occupied, are newer or have been renovated recently and have tenants signed to long-term leases.

Apollo Global Lends $250Mln Against 533-Unit Apartment Property in Manhattan

Thursday, 19 September 2019

Apollo Global Management has provided $250 million of financing against the 533-unit apartment property at 20 Broad St. in lower Manhattan. The loan allowed the property's owner, Metro Loft Management, to retire $187 million of construction financing that was provided two years ago.

ShopOne Eyes Selling Midwest Assets, Expanding Presence Along Both Coasts

Wednesday, 18 September 2019

ShopOne Centers REIT is offering for sale six properties with about 600,000 square feet in the Midwest, as part of its plan to reduce its holdings in the region. The New York company, whose shares do not trade on any exchange, expects the properties to sell for a combined $100 million in multiple transactions. Meanwhile, it wants to expand its presence in larger markets, primarily along the East and West coasts.

Blackstone Pays $355Mln for Atlanta's Hyatt Regency Hotel

Tuesday, 17 September 2019

The New York investment manager has paid $355 million, or $281,746/room, for the 1,260-room Hyatt Regency hotel in Atlanta. Hyatt Hotels Corp. sold the three-building property, which opened in 1967.

Monday, 16 September 2019

The $278.2 million CMBS loan against what is now called the Philadelphia Mills shopping center in Philadelphia, which had transferred to special servicing in March, has been modified once again. Its term was extended by another five years through June 1, 2024. Excess cash flow generated by the property will go toward paying down the loan.

Fannie, Freddie Regulator Revamps Multifamily Lending Caps

Friday, 13 September 2019

The Federal Housing Finance Agency has revamped the way it restricts the multifamily lending activities of Freddie Mac and Fannie Mae. It has now set a $100 billion cap for each of the two housing-finance agencies through the end of next year. That would imply that each of the two agencies could fund roughly $80 billion in 2020.

Societe Generale Lends $75Mln Against Manhattan's 606 Broadway

Friday, 13 September 2019

Societe Generale has provided $75 million of financing against the 34,170-square-foot mixed-use building at 606 Broadway in Manhattan. The loan allowed the property's owner and developer, a venture of Madison Capital and Vornado Realty Trust, to retire construction financing.

Natixis Lends $220Mln Against Amazon-Leased Offices in Seattle

Thursday, 12 September 2019

Natixis has provided $220 million of financing against 400 Ninth Ave. North, a 318,617-square-foot office building in Seattle that's fully leased to Amazon.com. The 12-story building, which was constructed four years ago by Vulcan Real Estate, is owned by a venture of Tristar Capital and RFR Holding.

Brookfield Lends $100Mln to Fund Purchase, Renovation of Manhattan Office Building

Wednesday, 11 September 2019

Brookfield Asset Management has provided $100 million of financing against the 224,000-square-foot office building at 300 East 42nd St. in Manhattan. The loan helped fund the building's $122.5 million purchase by a venture of Meadow Partners and Somerset Partners from ULM Holding Corp.

NAI Florida Affiliate Launches Fund Targeting Core-Plus Properties in Southeast

Tuesday, 10 September 2019

NAI/Merin Hunter Codman has raised its first real estate investment fund. The West Palm Beach, Fla., affiliate of NAI Global, has been investing on a one-off basis since 2012. Its fund, which has the capacity to make up to $200 million of investments, will target properties in the Southeast, primarily Florida.

Broadmark Realty Launches 2 Funds Totaling $500Mln

Monday, 09 September 2019

Broadmark Realty Capital Inc., a bridge lender that last month agreed to merge with Trinity Merger Corp., a blank-check company formed by Lee. S. Neibert, is in the market with two investment funds. They would be follow-ups to a $520 million fund that's likely been fully invested.

Lone Star Taps JLL to Market for Sale Florham Park, N.J., Offices

Friday, 06 September 2019

Lone Star Funds has placed the 228,350-square-foot 180 Park Ave. office building in Florham Park, N.J., on the sales block and has tapped JLL to market the property for sale. The Dallas investment manager had acquired the building as part of a portfolio four years ago from Columbia Property Trust.

REITs Take Advantage of Super-Low Rates; Issue Gobs of Notes

Thursday, 05 September 2019

Simon Property Group, among the largest REITs in the country, yesterday issued a whopping $3.5 billion of unsecured notes, which in a normal year would account for more than 10 percent of such issuance by all REITs. It wasn't the only REIT taking advantage of low rates and strong investor demand.

CIM Real Estate Sells Single-Tenant Properties as It Aims Remake into Mortgage REIT

Wednesday, 04 September 2019

CIM Real Estate Finance Trust Inc. has agreed to sell a portfolio 454 single-tenant properties to Realty Income Corp. for $1.25 billion as it moves to reposition itself as a mortgage REIT. The company over the next year to two years will be selling off additional properties and plowing proceeds into loan originations and participations.

RAIT Financial Files for Bankruptcy; Fortress Sets Stalking Horse Bid

Tuesday, 03 September 2019

RAIT Financial Trust, a Philadelphia mortgage REIT that last year stopped originating new loans and started an effort to sell assets in order to pay down debt, has agreed to sell all its assets to Fortress Investment Group for $174.4 million, plus assumed debt.

Admiral Capital Pursuing Core-Plus Office Properties in Suburban Markets

Friday, 20 September 2019

Admiral Capital Group, a San Antonio investment manager led by former National Basketball Association star David Robinson, is shifting its focus to pursue primarily core-plus deals rather than value-add opportunities. It's targeting properties in suburban U.S. markets that are at least 75 percent occupied, are newer or have been renovated recently and have tenants signed to long-term leases.

Apollo Global Lends $250Mln Against 533-Unit Apartment Property in Manhattan

Thursday, 19 September 2019

Apollo Global Management has provided $250 million of financing against the 533-unit apartment property at 20 Broad St. in lower Manhattan. The loan allowed the property's owner, Metro Loft Management, to retire $187 million of construction financing that was provided two years ago.

ShopOne Eyes Selling Midwest Assets, Expanding Presence Along Both Coasts

Wednesday, 18 September 2019

ShopOne Centers REIT is offering for sale six properties with about 600,000 square feet in the Midwest, as part of its plan to reduce its holdings in the region. The New York company, whose shares do not trade on any exchange, expects the properties to sell for a combined $100 million in multiple transactions. Meanwhile, it wants to expand its presence in larger markets, primarily along the East and West coasts.

Blackstone Pays $355Mln for Atlanta's Hyatt Regency Hotel

Tuesday, 17 September 2019

The New York investment manager has paid $355 million, or $281,746/room, for the 1,260-room Hyatt Regency hotel in Atlanta. Hyatt Hotels Corp. sold the three-building property, which opened in 1967.

Fannie, Freddie Regulator Revamps Multifamily Lending Caps

Friday, 13 September 2019

The Federal Housing Finance Agency has revamped the way it restricts the multifamily lending activities of Freddie Mac and Fannie Mae. It has now set a $100 billion cap for each of the two housing-finance agencies through the end of next year. That would imply that each of the two agencies could fund roughly $80 billion in 2020.

Societe Generale Lends $75Mln Against Manhattan's 606 Broadway

Friday, 13 September 2019

Societe Generale has provided $75 million of financing against the 34,170-square-foot mixed-use building at 606 Broadway in Manhattan. The loan allowed the property's owner and developer, a venture of Madison Capital and Vornado Realty Trust, to retire construction financing.

Natixis Lends $220Mln Against Amazon-Leased Offices in Seattle

Thursday, 12 September 2019

Natixis has provided $220 million of financing against 400 Ninth Ave. North, a 318,617-square-foot office building in Seattle that's fully leased to Amazon.com. The 12-story building, which was constructed four years ago by Vulcan Real Estate, is owned by a venture of Tristar Capital and RFR Holding.

Brookfield Lends $100Mln to Fund Purchase, Renovation of Manhattan Office Building

Wednesday, 11 September 2019

Brookfield Asset Management has provided $100 million of financing against the 224,000-square-foot office building at 300 East 42nd St. in Manhattan. The loan helped fund the building's $122.5 million purchase by a venture of Meadow Partners and Somerset Partners from ULM Holding Corp.

NAI Florida Affiliate Launches Fund Targeting Core-Plus Properties in Southeast

Tuesday, 10 September 2019

NAI/Merin Hunter Codman has raised its first real estate investment fund. The West Palm Beach, Fla., affiliate of NAI Global, has been investing on a one-off basis since 2012. Its fund, which has the capacity to make up to $200 million of investments, will target properties in the Southeast, primarily Florida.

Broadmark Realty Launches 2 Funds Totaling $500Mln

Monday, 09 September 2019

Broadmark Realty Capital Inc., a bridge lender that last month agreed to merge with Trinity Merger Corp., a blank-check company formed by Lee. S. Neibert, is in the market with two investment funds. They would be follow-ups to a $520 million fund that's likely been fully invested.

Lone Star Taps JLL to Market for Sale Florham Park, N.J., Offices

Friday, 06 September 2019

Lone Star Funds has placed the 228,350-square-foot 180 Park Ave. office building in Florham Park, N.J., on the sales block and has tapped JLL to market the property for sale. The Dallas investment manager had acquired the building as part of a portfolio four years ago from Columbia Property Trust.

REITs Take Advantage of Super-Low Rates; Issue Gobs of Notes

Thursday, 05 September 2019

Simon Property Group, among the largest REITs in the country, yesterday issued a whopping $3.5 billion of unsecured notes, which in a normal year would account for more than 10 percent of such issuance by all REITs. It wasn't the only REIT taking advantage of low rates and strong investor demand.

CIM Real Estate Sells Single-Tenant Properties as It Aims Remake into Mortgage REIT

Wednesday, 04 September 2019

CIM Real Estate Finance Trust Inc. has agreed to sell a portfolio 454 single-tenant properties to Realty Income Corp. for $1.25 billion as it moves to reposition itself as a mortgage REIT. The company over the next year to two years will be selling off additional properties and plowing proceeds into loan originations and participations.

RAIT Financial Files for Bankruptcy; Fortress Sets Stalking Horse Bid

Tuesday, 03 September 2019

RAIT Financial Trust, a Philadelphia mortgage REIT that last year stopped originating new loans and started an effort to sell assets in order to pay down debt, has agreed to sell all its assets to Fortress Investment Group for $174.4 million, plus assumed debt.

Hotel Sector Seen Slowing for Rest of 2019, 2020

Friday, 30 August 2019

Growth in the hotel sector is poised to slow for the remainder of this year and into next. CBRE, which previously had predicted that revenue per available room would grow by 2 percent this year, has scaled that projection back and now expects the widely followed industry metric to grow by only 0.9 percent for the duration of the year. Blame supply and an expected economic slowdown.

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

 

 

 

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
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