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

Friday, 24 June 2016

Morgan Stanley has provided a $265 million mortgage against the Shops at Skyview Center, a 560,000-square-foot retail property and neighboring 2,500-space parking garage in the Flushing section of Queens, N.Y. The loan takes out a $195 million mortgage that Morgan Stanley provided two years earlier.

Dominant Norfolk, Va., Retail Property Hits Sales Market

Thursday, 23 June 2016

McKinley Associates is offering for sale the JANAF Shopping Yard, an 885,594-square-foot retail property in Norfolk, Va., among the largest shopping centers in the country when it was built some 57 years ago. The property could sell for some $110 million. It's being offered through CBRE.

Doug Cooper, Long-Time CMBS B-Piece Specialist, Joins Cornerstone

Wednesday, 22 June 2016

Douglas Cooper, a long-time player in the CMBS B-piece business, is joining Cornerstone Real Estate Advisers. He previously had built the dominant B-piece operations at American Capital Ltd., Allied Capital Corp. and Criimi Mae Inc. The thinking is that Cornerstone is positioning itself to take advantage of opportunities stemming from pending risk-retention rules.

Behringer's Efforts to Sell Houston Offices Fall Flat

Tuesday, 21 June 2016

Behringer Harvard Opportunity REIT I Inc.'s efforts to sell two office properties with 384,779 square feet in Houston have hit a wall. The two properties are encumbered by a total of $26.8 million of CMBS debt. One has already been turned over in a deed-in-lieu of foreclosure. The other might have a similar fate.

Wells Fargo Lends $105.5Mln Against Hotel Portfolio

Monday, 20 June 2016

The bank has lent $105.5 million against a portfolio of five hotels totaling 1,396 rooms in New Jersey, Georgia and Florida. The floating-rate debt matures in June 2020 and can be extended for an additional one-year term. The hotels had been encumbered by a $98.4 million loan that was securitized through Wachovia Bank Commercial Mortgage Trust, 2007-C32.

 

Bank of America Lends $105Mln Against 3 Outlet Centers

Friday, 17 June 2016

Bank of America has provided $105 million of mortgage financing against three retail outlet centers with 838,764 square feet that are owned by Simon Property Group in Massachusetts, South Carolina and Georgia. The financing takes out $101.9 million of CMBS financing that was slated to mature in September.

Bank Leumi Lends $120Mln Against Residence Inn in Manhattan's Garment District

Thursday, 16 June 2016

The floating-rate financing allowed the property's owner to take out a $118.9 million CMBS loan against the property, at 1033 Avenue of the Americas. The property's performance has been impacted by growing expenses and the glut of new hotel developments in Manhattan.

Thursday, 16 June 2016

The CMBS market is entering what could be its most challenging period ever, thanks to a pending regulation whose intent was to stem any potential exuberance among mortgage lenders. While some players are downright gloomy about the market's prospects, others are more sanguine. They expect a substantial change in the way business is done, but the sector will stick around.

The Survey Says: Commercial Real Estate Cycle Well Past Expansion Stage

Thursday, 16 June 2016

A survey by Commercial Real Estate Direct found that market players are cautious about overall economic and property market conditions.

Banks Keep Playing Dominant Role in CRE Lending

Thursday, 16 June 2016

Clean balance sheets, low interest rates and borrower demand have fueled bank commercial real estate lending, which grew by 10.1 percent last year.

Wednesday, 15 June 2016

The lender has originated $196.3 million of mortgage financing against the Atlantic Building, a 284,872-square-foot office property in the East End area of Washington, D.C. The debt has a loan-to-value ratio of 65 percent, which pegs the value of the property at $302 million, or about $1,060/sf.

Capital Markets Volatility Continues to Plague Property Dealmaking

Tuesday, 14 June 2016

Instability in the capital markets, as well as other lingering issues, continue to hamper investment-sales activity in certain property sectors.

Monday, 13 June 2016

A partnership of Halpern Real Estate Ventures and SMA Equities is offering for sale the Jones L.E.S., a recently completed apartment property in the Lower East Side of Manhattan. The upscale property could sell for about $72 million, or $925,580/unit. Cushman & Wakefield has the assignment.

Real Estate Markets Healthy, But Warning Signals Are Flashing

Monday, 13 June 2016

Property fundamentals have strengthened steadily over the year. But pockets of softness are emerging for some property types in certain markets.

CMBS Servicers Sued in Fair-Value Option Case for 'Flawed' Appraisal

Friday, 10 June 2016

An investor in a 2007 CMBS transaction has sued the deal's master and special servicers, arguing that they breached their obligations under the deal's pooling and servicing agreement when they allowed a collateral $84.8 million loan to be sold using a fair-value purchase option. It's the latest of what's expected to be a growing list of suits related to the option, which allows holders of CMBS deals' controlling classes to buy defaulted loans at their fair-market value.

Dominant Norfolk, Va., Retail Property Hits Sales Market

Thursday, 23 June 2016

McKinley Associates is offering for sale the JANAF Shopping Yard, an 885,594-square-foot retail property in Norfolk, Va., among the largest shopping centers in the country when it was built some 57 years ago. The property could sell for some $110 million. It's being offered through CBRE.

Doug Cooper, Long-Time CMBS B-Piece Specialist, Joins Cornerstone

Wednesday, 22 June 2016

Douglas Cooper, a long-time player in the CMBS B-piece business, is joining Cornerstone Real Estate Advisers. He previously had built the dominant B-piece operations at American Capital Ltd., Allied Capital Corp. and Criimi Mae Inc. The thinking is that Cornerstone is positioning itself to take advantage of opportunities stemming from pending risk-retention rules.

Behringer's Efforts to Sell Houston Offices Fall Flat

Tuesday, 21 June 2016

Behringer Harvard Opportunity REIT I Inc.'s efforts to sell two office properties with 384,779 square feet in Houston have hit a wall. The two properties are encumbered by a total of $26.8 million of CMBS debt. One has already been turned over in a deed-in-lieu of foreclosure. The other might have a similar fate.

Wells Fargo Lends $105.5Mln Against Hotel Portfolio

Monday, 20 June 2016

The bank has lent $105.5 million against a portfolio of five hotels totaling 1,396 rooms in New Jersey, Georgia and Florida. The floating-rate debt matures in June 2020 and can be extended for an additional one-year term. The hotels had been encumbered by a $98.4 million loan that was securitized through Wachovia Bank Commercial Mortgage Trust, 2007-C32.

 

Bank of America Lends $105Mln Against 3 Outlet Centers

Friday, 17 June 2016

Bank of America has provided $105 million of mortgage financing against three retail outlet centers with 838,764 square feet that are owned by Simon Property Group in Massachusetts, South Carolina and Georgia. The financing takes out $101.9 million of CMBS financing that was slated to mature in September.

Bank Leumi Lends $120Mln Against Residence Inn in Manhattan's Garment District

Thursday, 16 June 2016

The floating-rate financing allowed the property's owner to take out a $118.9 million CMBS loan against the property, at 1033 Avenue of the Americas. The property's performance has been impacted by growing expenses and the glut of new hotel developments in Manhattan.

The Survey Says: Commercial Real Estate Cycle Well Past Expansion Stage

Thursday, 16 June 2016

A survey by Commercial Real Estate Direct found that market players are cautious about overall economic and property market conditions.

Banks Keep Playing Dominant Role in CRE Lending

Thursday, 16 June 2016

Clean balance sheets, low interest rates and borrower demand have fueled bank commercial real estate lending, which grew by 10.1 percent last year.

Capital Markets Volatility Continues to Plague Property Dealmaking

Tuesday, 14 June 2016

Instability in the capital markets, as well as other lingering issues, continue to hamper investment-sales activity in certain property sectors.

Real Estate Markets Healthy, But Warning Signals Are Flashing

Monday, 13 June 2016

Property fundamentals have strengthened steadily over the year. But pockets of softness are emerging for some property types in certain markets.

CMBS Servicers Sued in Fair-Value Option Case for 'Flawed' Appraisal

Friday, 10 June 2016

An investor in a 2007 CMBS transaction has sued the deal's master and special servicers, arguing that they breached their obligations under the deal's pooling and servicing agreement when they allowed a collateral $84.8 million loan to be sold using a fair-value purchase option. It's the latest of what's expected to be a growing list of suits related to the option, which allows holders of CMBS deals' controlling classes to buy defaulted loans at their fair-market value.

CMBS Loan Underwriting Appears to Stabilize

Thursday, 09 June 2016

Credit metrics for conduit transactions that have been issued so far this year appear to have stabilized. Kroll Bond Rating Agency found that leverage levels, both underwritten and stressed, have declined, particularly among deals it rated. It found a greater proportion of interest-only loans in this year's issuance, and that's explained in part by the willingness of lenders to give up some amortization in return for lower leverage.

MetLife Lends $170Mln Against Manhattan Apartment Property

Wednesday, 08 June 2016

MetLife Real Estate Investments has provided a $170 million mortgage against the Bristol, a 369-unit apartment property in Manhattan's tony Sutton Place neighborhood. The loan is at least the fourth that the MetLife Inc. unit has provided against the property, at 300 East 56th St., since 1996.

Florida Mall That Had Backed $52.2Mln CMBS Debt Hits Auction Block

Tuesday, 07 June 2016

LNR Partners Inc. is offering for sale the 535,365 square feet of non-anchor retail space at the Merritt Square Mall in Merritt Island, Fla., that had served as collateral for a $52.2 million CMBS loan. The space, which is being offered through NGKF Capital Markets, could be worth $30 million. It's being auctioned on the Ten-X site.

Hines Strikes $340.1Mln Sale of Chicago's 321 North Clark

Friday, 03 June 2016

Hines REIT Inc. has struck a deal to sell 321 North Clark St., an 889,744-square-foot office property in downtown Chicago, for $340.1 million, or $382.25/sf. The 96-percent leased property is being sold to a venture in which Hines Interests, the sponsor of Hines REIT, holds a 5 percent stake.

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2015
Investment Bank #Deals Vol$mln MktShr%
Deutsche Bank 18.23 17,210.79 18.25
Wells Fargo Securities 17.77 14,715.47 15.61
JPMorgan Securities 14.43 11,589.38 12.29
Morgan Stanley 14.47 9,715.97 10.30
Credit Suisse 10.75 8,593.95 9.11

 

MOODY'S/RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2015
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 161.6 10,858.98 11.55
Deutsche Bank 218.0 8,867.97 9.43
Morgan Stanley 241.5 8,264.67 8.79
Bank of America 242.8 6,533.69 6.95
Citigroup 217.4 6,274.94 6.67

 

 

 

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
warehouse-backstage