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

AEW Looks to Flex Muscle in Mortgage-Lending Arena

Monday, 27 July 2015

AEW Capital Management is looking to write structured loans against trophy office and high-end apartment properties in the country's 20 top markets. It typically will provide up to 80 percent leverage by combining a senior and mezzanine loan with terms of 10 years or more. Its aim is to build a $2 billion portfolio in the coming two years.

Monday, 27 July 2015

Manhattan Towers, the two-building office complex in Manhattan Beach, Calif., that served as collateral for a $75 million CMBS loan, is said to have attracted a high bid of $93 million. The two-building complex had served as collateral for a $75 million CMBS loan, until it was transferred to its special servicer in a deed-in-lieu of foreclosure in late 2011.

BlackRock Pays $183.91Mln for Washington, D.C.'s Franklin Tower

Friday, 24 July 2015

BlackRock Realty Advisors Inc. has paid $183.91 million, or roughly $810/sf, for Franklin Tower, a 227,000-square-foot office property in the East End submarket of Washington, D.C. The New York investment manager purchased the 12-story building, at 1401 Eye St. NW, from Shorenstein Properties.

Thursday, 23 July 2015

A venture led by Diamond Realty Investments Inc. is offering for sale a portfolio of five student-housing properties with 4,320 beds with an asking price of $200 million, or about $46,296/bed. That would result in a capitalization rate of 6.5 percent, based on projected net income. The properties are fully leased for the school year.

Highbrook Looks to Sell Southeast Office Portfolio

Wednesday, 22 July 2015

Highbrook Investment Management, which pursues distressed and value-add real estate opportunities, has put a portfolio of six office properties with 1.6 million square feet in the Southeast on the sales block. Most of the properties were severely distressed when purchased, but have turned around. The portfolio is being shopped via Eastdil Secured.

Harlem, N.Y., Office Buildings Get New Owner, New Loan

Tuesday, 21 July 2015

Two office buildings with a combined 370,140 square feet at 55 and 215 West 125th St. in Manhattan's Harlem area have been recapitalized, with Deutsche Asset & Wealth Management buying a majority stake in a deal valuing them at $117 million. In addition, JPMorgan Chase Bank has provided a total of $80 million of financing.

TPG, Deutsche Lend $200Mln Against Manhattan's Mark Hotel

Monday, 20 July 2015

TPG Capital and Deutsche Bank have provided a total of $200 million of senior financing against the 156-room Mark Hotel on Manhattan's Upper East Side, while Starwood Property Trust has provided an unknown amount of mezzanine debt. The financing retires a loan, with a balance of $195.2 million, that had been held by Deutsche. It's the latest sizable financing provided by TPG since buying a portfolio of loans from Deutsche earlier this year.

Delaware Life Lends $240Mln Against Ritz-Carltons in Washington, D.C., Manhattan

Friday, 17 July 2015

Delaware Life Insurance Co. has provided $240 million of financing against three Ritz-Carlton hotels owned by Millennium Partners ventures in Manhattan and Washington, D.C. It lent $135 million against the leasehold interest in the 261-room property at 50 Central Park South in Manhattan and $105 million against two Ritz-Carltons in Washington, in Georgetown and Foggy Bottom.

Thursday, 16 July 2015

Crow Holdings Capital Partners is nearing its scheduled final closing date for a real estate investment fund that's seeking up to $1.5 billion of equity commitments. The Dallas investment manager set a Nov. 2 final close for its Crow Holdings Realty Partners VII fund, which had raised more than $600 million as of the end of May. It's already started investing.

Atlanta's Paces West Office Property Hits Sales Market

Wednesday, 15 July 2015

A venture of Tier REIT Inc. and Oaktree Capital Management is offering for sale Paces West, a 646,471-square-foot office property in the Cumberland/Galleria submarket of Atlanta. It has hired CBRE to market the property, which could sell for about $117 million, or about $181/sf. The property is encumbered by $77.3 million of CMBS financing, which was modified two years ago.

Chicago Developer Plans Big Move into Managing Investment Funds

Tuesday, 14 July 2015

Fifield Cos., a developer of office and apartment properties in Chicago and Los Angeles, is planning to move into the investment management business. It soon will launch marketing for an inaugural fund with an equity-raising target of $175 million. Its aim is to eventually grow its funds business to more than $1 billion of equity commitments.

Tuesday, 14 July 2015

Swig Co. has acquired the 75 percent stake it didn't already own in the Kaiser Center, an 811,005-square-foot office property in Oakland, Calif., for $30.8 million. As part of the property's recapitalization, the San Francisco investor has lined up a $140 million mortgage from Citibank.

GLL Selected as Winning Bidder for Bethesda, Md., Office Building

Monday, 13 July 2015

GLL Real Estate Partners Inc. has been selected as the winning bidder for 7550 Wisconsin Ave., a 119,591-square-foot office building in the Washington, D.C., suburb of Bethesda, Md. The property, which is being sold by a venture of Akridge and Rockwood Capital through DTZ, is seen fetching $75 million, or about $627/sf.

Friday, 10 July 2015

TPG Capital has provided $95 million of mortgage financing against the Beekman Tower, a 178-unit corporate-housing property in Manhattan's Turtle Bay neighborhood. The property, a former hotel, was recently converted to corporate housing. It was purchased by a group led by Chaim Miller for $138.5 million.

Etre's Purchase of Boston's State Street Financial Center Advances

Thursday, 09 July 2015

The REIT's proposed purchase of a 48.9 percent stake in the 1.1 million-square-foot office property is moving forward. It would use proceeds from a stock offering to fund its $155 million acquisition of the stake from Fortis Property Group. The deal would value the 36-story building at $1.1 billion.

AEW Looks to Flex Muscle in Mortgage-Lending Arena

Monday, 27 July 2015

AEW Capital Management is looking to write structured loans against trophy office and high-end apartment properties in the country's 20 top markets. It typically will provide up to 80 percent leverage by combining a senior and mezzanine loan with terms of 10 years or more. Its aim is to build a $2 billion portfolio in the coming two years.

BlackRock Pays $183.91Mln for Washington, D.C.'s Franklin Tower

Friday, 24 July 2015

BlackRock Realty Advisors Inc. has paid $183.91 million, or roughly $810/sf, for Franklin Tower, a 227,000-square-foot office property in the East End submarket of Washington, D.C. The New York investment manager purchased the 12-story building, at 1401 Eye St. NW, from Shorenstein Properties.

Highbrook Looks to Sell Southeast Office Portfolio

Wednesday, 22 July 2015

Highbrook Investment Management, which pursues distressed and value-add real estate opportunities, has put a portfolio of six office properties with 1.6 million square feet in the Southeast on the sales block. Most of the properties were severely distressed when purchased, but have turned around. The portfolio is being shopped via Eastdil Secured.

Harlem, N.Y., Office Buildings Get New Owner, New Loan

Tuesday, 21 July 2015

Two office buildings with a combined 370,140 square feet at 55 and 215 West 125th St. in Manhattan's Harlem area have been recapitalized, with Deutsche Asset & Wealth Management buying a majority stake in a deal valuing them at $117 million. In addition, JPMorgan Chase Bank has provided a total of $80 million of financing.

TPG, Deutsche Lend $200Mln Against Manhattan's Mark Hotel

Monday, 20 July 2015

TPG Capital and Deutsche Bank have provided a total of $200 million of senior financing against the 156-room Mark Hotel on Manhattan's Upper East Side, while Starwood Property Trust has provided an unknown amount of mezzanine debt. The financing retires a loan, with a balance of $195.2 million, that had been held by Deutsche. It's the latest sizable financing provided by TPG since buying a portfolio of loans from Deutsche earlier this year.

Delaware Life Lends $240Mln Against Ritz-Carltons in Washington, D.C., Manhattan

Friday, 17 July 2015

Delaware Life Insurance Co. has provided $240 million of financing against three Ritz-Carlton hotels owned by Millennium Partners ventures in Manhattan and Washington, D.C. It lent $135 million against the leasehold interest in the 261-room property at 50 Central Park South in Manhattan and $105 million against two Ritz-Carltons in Washington, in Georgetown and Foggy Bottom.

Atlanta's Paces West Office Property Hits Sales Market

Wednesday, 15 July 2015

A venture of Tier REIT Inc. and Oaktree Capital Management is offering for sale Paces West, a 646,471-square-foot office property in the Cumberland/Galleria submarket of Atlanta. It has hired CBRE to market the property, which could sell for about $117 million, or about $181/sf. The property is encumbered by $77.3 million of CMBS financing, which was modified two years ago.

Chicago Developer Plans Big Move into Managing Investment Funds

Tuesday, 14 July 2015

Fifield Cos., a developer of office and apartment properties in Chicago and Los Angeles, is planning to move into the investment management business. It soon will launch marketing for an inaugural fund with an equity-raising target of $175 million. Its aim is to eventually grow its funds business to more than $1 billion of equity commitments.

GLL Selected as Winning Bidder for Bethesda, Md., Office Building

Monday, 13 July 2015

GLL Real Estate Partners Inc. has been selected as the winning bidder for 7550 Wisconsin Ave., a 119,591-square-foot office building in the Washington, D.C., suburb of Bethesda, Md. The property, which is being sold by a venture of Akridge and Rockwood Capital through DTZ, is seen fetching $75 million, or about $627/sf.

Etre's Purchase of Boston's State Street Financial Center Advances

Thursday, 09 July 2015

The REIT's proposed purchase of a 48.9 percent stake in the 1.1 million-square-foot office property is moving forward. It would use proceeds from a stock offering to fund its $155 million acquisition of the stake from Fortis Property Group. The deal would value the 36-story building at $1.1 billion.

Baceline Looks to Assemble Portfolio of Shopping Centers

Wednesday, 08 July 2015

Baceline Investments, a Denver investment manager focused on shopping centers in non-coastal markets, has acquired 10 such centers for $33.3 million as part of a plan to assemble a total of about 25 such properties that it would eventually sell as a portfolio.

JPMorgan Lends $350.9Mln Against Hertz Portfolio Acquisition

Tuesday, 07 July 2015

JPMorgan Chase Bank has provided $350.9 million of financing against five properties that Hertz Investment Group recently purchased from Equity Commonwealth. The Santa Monica, Calif., investor bought the 2.9 million-square-foot portfolio for $402.2 million.

Consortium Lends $160Mln Against Mayflower Hotel in Washington, D.C.

Monday, 06 July 2015

A group of lenders that include Citibank and Apollo Commercial Real Estate Finance Inc. has provided $160 million of financing against 584 rooms at the Mayflower Hotel in Washington, D.C. The financing is comprised of a $115 million senior loan provided by Citi and $45 million of mezzanine financing, of which Apollo funded a $20 million junior piece.

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 $50.9Bln; Deutsche Bank Dominates Once Again

Wednesday, 01 July 2015

A total of 61 private-label CMBS deals totaling $50.9 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 12 deals totaling $10.2 billion, or 20.1 percent of the total volume.

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

 

 

 

REITCafe

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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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