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

How Have Bank CRE Holdings Fluctuated with Changes in Interest Rates?

Friday, 18 January 2019

Commercial real estate holdings by banks have changed along with interest rates since the Great Financial Crisis. But not all bank types have reacted similarly.

Do Leases Insulate Investor Returns from Rising Interest Rates?

Thursday, 17 January 2019

Leases with inflation clauses prevent the erosion of cash flow, and ultimately the valuation, of commercial assets. These clauses have helped blunt the impact of rising interest rates, but to varying degrees across time.

Here Is What You Need to Know About the 2019 Political Landscape

Thursday, 17 January 2019

Action will not come swiftly in 2019, if it comes at all. But the deliberative legislative and regulatory processes will provide many opportunities for the commercial real estate industry and other stakeholders to weigh in.

Nearly $79Bln of CMBS Loans Come Due Through 2020

Wednesday, 16 January 2019

Some 31 percent of the loans set to mature between now and the end of next year are backed by hotels, while 19 and 22 percent are against office and retail properties, respectively.

 

Interest Rates Won't Slow Multifamily Market in the New Year

Wednesday, 16 January 2019

The apartment sector has led all other property types in terms of pricing gains since the Great Financial Crisis. This year looks no different, as rising interest rates drive up homeownership costs.

Crowdfunding Platforms Preparing for Rising Interest Rates, Potential Market Turn

Tuesday, 15 January 2019

In their short existence, crowdfunders have enjoyed a frothy real estate market. But with the future of interest rates unclear, many in the sector are becoming more selective in what assets they target.

The Next Crisis May Be Different for Banks and CMBS

Tuesday, 15 January 2019

Banks are likely to feel the pinch of rising interest rates sooner than CMBS, which may not see any impact for at least another four years.

Mortgage Markets Should Remain Active, Even if Rates Climb

Monday, 14 January 2019

Some borrowers are locking in long-term rates at what are still historically low levels, while others are eying short-term or floating-rate debt to avoid prepayment restrictions and maintain flexibility with their properties.

It's All About Rates

Monday, 14 January 2019

The economy is booming and, as a result, the Fed is slowly raising interest rates and winding down its multi-trillion-dollar balance sheet. With the wind-down has come an accelerated flattening of the yield curve, the likes of which has not been seen since before the Great Financial Crisis.

ACRES Capital Aims for Another Big Jump in Originations Activity in 2019

Friday, 11 January 2019

ACRES Capital Corp., a six-year-old investment manager that specializes in providing debt capital against commercial properties, last year completed $500 million of deals, increasing its origination activity by two-thirds from the previous year. It now expects volume to jump by another 60 percent this year, to $800 million.

Hall Structured Sees Originating $400Mln of Loans This Year

Thursday, 10 January 2019

Hall Structured Finance, a Dallas alternative lender, expects to increase its lending volume by at least one-third to $400 million this year, breaking its annual production record of $300 million set in each of the past two years. It's on its way, given that it's under contract to provide $144 million of financing for four hotel projects.

CBRE Pays $376.5Mln for Washington, D.C.'s Warner Building

Wednesday, 09 January 2019

The Los Angeles investment manager bought the 13-story property from a venture of JBG Smith Properties and the Canada Pension Plan Investment Board. The 94-year-old building is named after the Warner Theater, which occupies nearly 40,000 sf of space on its lower floors. It is 98.3 percent leased and generates $40.3 million of annualized rent.

Capital-Raising Among Real Estate Fund Managers Slowed Last Year to $118Bln

Tuesday, 08 January 2019

A total of 298 closed-end real estate funds completed fund-raising last year, generating $118 billion of equity commitments, according to a preliminary tabulation by Preqin. That compares with the $132 billion that was raised in 2017. Indications are that investors are still keen on the asset class.

Tiny Buyer of Net-Leased Real Estate Aims for Growth Through Development Deals

Monday, 07 January 2019

Generation Income Properties Inc., a tiny REIT that was brought to market just more than two years ago, has developed a plan that could allow it to grow substantially over time. The Tampa, Fla., company is signing up developers to exclusive agreements through which it provides development capital in exchange for property purchase options.

JPMorgan Dominates CMBS Bookrunner, Loan Contributor Rankings

Friday, 04 January 2019

JPMorgan Chase & Co. dominated the domestic, private-label CMBS market last year, taking top honors among bookrunners as well as loan contributors. The company's investment banking operation received credit as bookrunner for 17.7 deals totaling $10.6 billion, for a 13.9 percent share of the $76.1 billion market. Its lending business, meanwhile, contributed $9.4 billion of loans to CMBS deals, or 12.4 percent of the $76.1 billion that was securitized.

How Have Bank CRE Holdings Fluctuated with Changes in Interest Rates?

Friday, 18 January 2019

Commercial real estate holdings by banks have changed along with interest rates since the Great Financial Crisis. But not all bank types have reacted similarly.

Do Leases Insulate Investor Returns from Rising Interest Rates?

Thursday, 17 January 2019

Leases with inflation clauses prevent the erosion of cash flow, and ultimately the valuation, of commercial assets. These clauses have helped blunt the impact of rising interest rates, but to varying degrees across time.

Here Is What You Need to Know About the 2019 Political Landscape

Thursday, 17 January 2019

Action will not come swiftly in 2019, if it comes at all. But the deliberative legislative and regulatory processes will provide many opportunities for the commercial real estate industry and other stakeholders to weigh in.

Nearly $79Bln of CMBS Loans Come Due Through 2020

Wednesday, 16 January 2019

Some 31 percent of the loans set to mature between now and the end of next year are backed by hotels, while 19 and 22 percent are against office and retail properties, respectively.

 

Interest Rates Won't Slow Multifamily Market in the New Year

Wednesday, 16 January 2019

The apartment sector has led all other property types in terms of pricing gains since the Great Financial Crisis. This year looks no different, as rising interest rates drive up homeownership costs.

Crowdfunding Platforms Preparing for Rising Interest Rates, Potential Market Turn

Tuesday, 15 January 2019

In their short existence, crowdfunders have enjoyed a frothy real estate market. But with the future of interest rates unclear, many in the sector are becoming more selective in what assets they target.

The Next Crisis May Be Different for Banks and CMBS

Tuesday, 15 January 2019

Banks are likely to feel the pinch of rising interest rates sooner than CMBS, which may not see any impact for at least another four years.

Mortgage Markets Should Remain Active, Even if Rates Climb

Monday, 14 January 2019

Some borrowers are locking in long-term rates at what are still historically low levels, while others are eying short-term or floating-rate debt to avoid prepayment restrictions and maintain flexibility with their properties.

It's All About Rates

Monday, 14 January 2019

The economy is booming and, as a result, the Fed is slowly raising interest rates and winding down its multi-trillion-dollar balance sheet. With the wind-down has come an accelerated flattening of the yield curve, the likes of which has not been seen since before the Great Financial Crisis.

ACRES Capital Aims for Another Big Jump in Originations Activity in 2019

Friday, 11 January 2019

ACRES Capital Corp., a six-year-old investment manager that specializes in providing debt capital against commercial properties, last year completed $500 million of deals, increasing its origination activity by two-thirds from the previous year. It now expects volume to jump by another 60 percent this year, to $800 million.

Hall Structured Sees Originating $400Mln of Loans This Year

Thursday, 10 January 2019

Hall Structured Finance, a Dallas alternative lender, expects to increase its lending volume by at least one-third to $400 million this year, breaking its annual production record of $300 million set in each of the past two years. It's on its way, given that it's under contract to provide $144 million of financing for four hotel projects.

CBRE Pays $376.5Mln for Washington, D.C.'s Warner Building

Wednesday, 09 January 2019

The Los Angeles investment manager bought the 13-story property from a venture of JBG Smith Properties and the Canada Pension Plan Investment Board. The 94-year-old building is named after the Warner Theater, which occupies nearly 40,000 sf of space on its lower floors. It is 98.3 percent leased and generates $40.3 million of annualized rent.

Capital-Raising Among Real Estate Fund Managers Slowed Last Year to $118Bln

Tuesday, 08 January 2019

A total of 298 closed-end real estate funds completed fund-raising last year, generating $118 billion of equity commitments, according to a preliminary tabulation by Preqin. That compares with the $132 billion that was raised in 2017. Indications are that investors are still keen on the asset class.

Tiny Buyer of Net-Leased Real Estate Aims for Growth Through Development Deals

Monday, 07 January 2019

Generation Income Properties Inc., a tiny REIT that was brought to market just more than two years ago, has developed a plan that could allow it to grow substantially over time. The Tampa, Fla., company is signing up developers to exclusive agreements through which it provides development capital in exchange for property purchase options.

JPMorgan Dominates CMBS Bookrunner, Loan Contributor Rankings

Friday, 04 January 2019

JPMorgan Chase & Co. dominated the domestic, private-label CMBS market last year, taking top honors among bookrunners as well as loan contributors. The company's investment banking operation received credit as bookrunner for 17.7 deals totaling $10.6 billion, for a 13.9 percent share of the $76.1 billion market. Its lending business, meanwhile, contributed $9.4 billion of loans to CMBS deals, or 12.4 percent of the $76.1 billion that was securitized.

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

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    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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