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

$57.6Mln CMBS Loan Against Los Angeles Office Moves to Special Servicer

Friday, 15 November 2019

The $57.6 million CMBS loan against the 213,556-square-foot office building at 6100 Wilshire Blvd. in Los Angeles has transferred to special servicer Rialto Capital Advisors because of an expected non-monetary default. It was originated by UBS to facilitate the 16-story building's $76 million purchase by Citi Real Estate.

Kennedy Wilson Approaches Capital-Raising Target for Latest Fund

Thursday, 14 November 2019

Kennedy Wilson Inc. is well on its way to raising its latest value-add investment fund, which has a $750 million equity target. The Beverly Hills, Calif., investment manager so far has raised nearly $540 million of its target for the vehicle, Kennedy Wilson Real Estate Fund VI LP.

Somera Road Pays $210.7Mln for Skyline Office Complex in Suburban Washington, D.C.

Wednesday, 13 November 2019

The $678 million of CMBS financing against the eight-building Skyline office complex in the Washington, D.C., suburb of Falls Church, Va., finally has been resolved, with Somera Road Inc. paying $210.7 million for the collateral buildings. The debt, which six years ago was split into A and B notes, was held by three trusts.

Consolidated-Tomoka Spinning Off Net-Leased Portfolio Through REIT

Tuesday, 12 November 2019

The former Consolidated-Tomoka Land Co. is spinning off 20 net-leased retail and office properties with 817,000 square feet through a newly formed REIT, Alpine Income Property Trust Inc., that is aiming to raise public capital through a stock offering, and will pursue small-capitalization net-leased properties.

Hotel Fundamentals Decelerate in Face of Heavy Supply

Friday, 08 November 2019

Revenue per available room, the key metric for the hotel industry, was up in the third quarter by 0.8 percent when compared to a year ago, to $94.42, according to STR. That represented a slow-down from the second quarter, when RevPAR increased by 1.1 percent. That slowdown should continue as increasing numbers of rooms come online.

Wells Fargo Writes $178.8Mln Freddie Loan Against Manhattan Apartment Property

Thursday, 07 November 2019

Wells Fargo Bank has originated $178.8 million of Freddie Mac financing against the 356-unit Chelsea Centro apartment property in Manhattan. The loan allowed the property's owner, TF Cornerstone of New York, to retire $120.8 million of Freddie debt that was securitized through FREMF, 2010-K7.

Safehold Launches Program to Buy, Fix Archaic Ground Leases

Wednesday, 06 November 2019

Safehold Inc. has developed a program through which it buys fee interests in properties that might have archaic lease terms and restructures them to make them more palatable to the property owners as well as prospective lenders. A potential hotbed of opportunity is in Manhattan, where a number of ground leases are structured with onerous rent resets.

 

CBL Eyes Refinancing $150.6Mln of CMBS Loans on 3 Malls

Tuesday, 05 November 2019

CBL & Associates Properties Inc. has started an effort to refinance $150.6 million of mortgage debt against three of its shopping centers. The three loans, securitized through GS Mortgage Securities Corp. II, 2010-C1, don't come due until next July and August. The REIT has been in talks with Goldman Sachs, which had provided the existing loans, and has spoken with other potential lenders.

Monday, 04 November 2019

AFIAA Foundation for International Real Estate Investments has secured $102.2 million of financing to help fund its acquisition of two office buildings with 251,174 square feet in Manhattan. ING Capital lent $50 million against 158 West 27th St., while Allianz Life Insurance Co. provided a $52.2 million loan against 45 West 45th St.

CMBS Loan Defeasance Volume Already Tops All of Last Year

Friday, 01 November 2019

The volume of CMBS loans that have been defeased, or replaced by government securities, already has exceeded all of last year's volume. Through September, 694 loans with a balance of $10.89 billion have been defeased. That compares with the $10.88 billion volume for all of last year. Volumes will keep climbing, thanks to continued low interest rates.

CMBS Conduit Lenders Get More Competitive in Multifamily Lending Business

Thursday, 31 October 2019

CMBS conduit lenders are having more success originating loans against multifamily properties, in large part because of how the Federal Housing Finance Agency has revamped the lending caps it imposes on Fannie Mae and Freddie Mac. So far this year, 12.25 percent of all conduit loans have been backed by apartment properties. That's up from 10.74 percent for all of last year.

Equity Commonwealth Eyes Possible Sale of 4 Office Buildings

Wednesday, 30 October 2019

Equity Commonwealth, which took a hiatus from selling properties earlier this year, plans to put four of its seven office buildings, which have a total of 2.5 million square feet, up for sale by the end of the year. The properties it's identified as potential sales candidates are in Bellevue, Wash., Boston and Washington, D.C.

Taconic Buys CMBS Loans Against 2 Conn. Offices via Fair-Value Option

Tuesday, 29 October 2019

A venture led by Taconic Capital Partners has exercised its controlling-class rights and purchased what originally had been $71 million of CMBS debt against 50 and 64 Danbury Road, a pair of office buildings with a total of 265,142 square feet in Wilton, Conn. The trust holding the debt recovered $34.5 million in the sale, which resulted in a $35.8 million loss.

 

Prologis Buying Liberty Property; Plans to Sell $3.5Bln of Properties

Monday, 28 October 2019

Prologis Inc. has agreed to acquire Liberty Property Trust in an all-stock deal valued at $12.6 billion, including the assumption of the Wayne, Pa., REIT's $3.4 billion of debt. The deal is expected to be completed early next year. The price Prologis is paying results in a 4.7 percent capitalization rate.

Venture Buys Charlotte Office Complex, Obtains $182Mln Loan from JPMorgan

Friday, 25 October 2019

A venture of Accesso Partners and Partners Group has paid $270 million, or $150/sf, for the 1.8 million-square-foot Innovation Park office complex in Charlotte, N.C. The deal was funded with a $182 million loan from JPMorgan Chase Bank. The loan matures in October 2029.

$57.6Mln CMBS Loan Against Los Angeles Office Moves to Special Servicer

Friday, 15 November 2019

The $57.6 million CMBS loan against the 213,556-square-foot office building at 6100 Wilshire Blvd. in Los Angeles has transferred to special servicer Rialto Capital Advisors because of an expected non-monetary default. It was originated by UBS to facilitate the 16-story building's $76 million purchase by Citi Real Estate.

Kennedy Wilson Approaches Capital-Raising Target for Latest Fund

Thursday, 14 November 2019

Kennedy Wilson Inc. is well on its way to raising its latest value-add investment fund, which has a $750 million equity target. The Beverly Hills, Calif., investment manager so far has raised nearly $540 million of its target for the vehicle, Kennedy Wilson Real Estate Fund VI LP.

Somera Road Pays $210.7Mln for Skyline Office Complex in Suburban Washington, D.C.

Wednesday, 13 November 2019

The $678 million of CMBS financing against the eight-building Skyline office complex in the Washington, D.C., suburb of Falls Church, Va., finally has been resolved, with Somera Road Inc. paying $210.7 million for the collateral buildings. The debt, which six years ago was split into A and B notes, was held by three trusts.

Consolidated-Tomoka Spinning Off Net-Leased Portfolio Through REIT

Tuesday, 12 November 2019

The former Consolidated-Tomoka Land Co. is spinning off 20 net-leased retail and office properties with 817,000 square feet through a newly formed REIT, Alpine Income Property Trust Inc., that is aiming to raise public capital through a stock offering, and will pursue small-capitalization net-leased properties.

Hotel Fundamentals Decelerate in Face of Heavy Supply

Friday, 08 November 2019

Revenue per available room, the key metric for the hotel industry, was up in the third quarter by 0.8 percent when compared to a year ago, to $94.42, according to STR. That represented a slow-down from the second quarter, when RevPAR increased by 1.1 percent. That slowdown should continue as increasing numbers of rooms come online.

Wells Fargo Writes $178.8Mln Freddie Loan Against Manhattan Apartment Property

Thursday, 07 November 2019

Wells Fargo Bank has originated $178.8 million of Freddie Mac financing against the 356-unit Chelsea Centro apartment property in Manhattan. The loan allowed the property's owner, TF Cornerstone of New York, to retire $120.8 million of Freddie debt that was securitized through FREMF, 2010-K7.

Safehold Launches Program to Buy, Fix Archaic Ground Leases

Wednesday, 06 November 2019

Safehold Inc. has developed a program through which it buys fee interests in properties that might have archaic lease terms and restructures them to make them more palatable to the property owners as well as prospective lenders. A potential hotbed of opportunity is in Manhattan, where a number of ground leases are structured with onerous rent resets.

 

CBL Eyes Refinancing $150.6Mln of CMBS Loans on 3 Malls

Tuesday, 05 November 2019

CBL & Associates Properties Inc. has started an effort to refinance $150.6 million of mortgage debt against three of its shopping centers. The three loans, securitized through GS Mortgage Securities Corp. II, 2010-C1, don't come due until next July and August. The REIT has been in talks with Goldman Sachs, which had provided the existing loans, and has spoken with other potential lenders.

CMBS Loan Defeasance Volume Already Tops All of Last Year

Friday, 01 November 2019

The volume of CMBS loans that have been defeased, or replaced by government securities, already has exceeded all of last year's volume. Through September, 694 loans with a balance of $10.89 billion have been defeased. That compares with the $10.88 billion volume for all of last year. Volumes will keep climbing, thanks to continued low interest rates.

CMBS Conduit Lenders Get More Competitive in Multifamily Lending Business

Thursday, 31 October 2019

CMBS conduit lenders are having more success originating loans against multifamily properties, in large part because of how the Federal Housing Finance Agency has revamped the lending caps it imposes on Fannie Mae and Freddie Mac. So far this year, 12.25 percent of all conduit loans have been backed by apartment properties. That's up from 10.74 percent for all of last year.

Equity Commonwealth Eyes Possible Sale of 4 Office Buildings

Wednesday, 30 October 2019

Equity Commonwealth, which took a hiatus from selling properties earlier this year, plans to put four of its seven office buildings, which have a total of 2.5 million square feet, up for sale by the end of the year. The properties it's identified as potential sales candidates are in Bellevue, Wash., Boston and Washington, D.C.

Taconic Buys CMBS Loans Against 2 Conn. Offices via Fair-Value Option

Tuesday, 29 October 2019

A venture led by Taconic Capital Partners has exercised its controlling-class rights and purchased what originally had been $71 million of CMBS debt against 50 and 64 Danbury Road, a pair of office buildings with a total of 265,142 square feet in Wilton, Conn. The trust holding the debt recovered $34.5 million in the sale, which resulted in a $35.8 million loss.

 

Prologis Buying Liberty Property; Plans to Sell $3.5Bln of Properties

Monday, 28 October 2019

Prologis Inc. has agreed to acquire Liberty Property Trust in an all-stock deal valued at $12.6 billion, including the assumption of the Wayne, Pa., REIT's $3.4 billion of debt. The deal is expected to be completed early next year. The price Prologis is paying results in a 4.7 percent capitalization rate.

Venture Buys Charlotte Office Complex, Obtains $182Mln Loan from JPMorgan

Friday, 25 October 2019

A venture of Accesso Partners and Partners Group has paid $270 million, or $150/sf, for the 1.8 million-square-foot Innovation Park office complex in Charlotte, N.C. The deal was funded with a $182 million loan from JPMorgan Chase Bank. The loan matures in October 2029.

Cousins Selling Hearst Tower in Charlotte, N.C., for $455.5Mln

Thursday, 24 October 2019

Cousins Properties Inc. expects to sell the 966,000-square-foot Hearst Tower office building in downtown Charlotte, N.C., for $455.5 million, or $472/sf, to its largest tenant, Truist Financial, which is being formed through the merger of BB&T Corp. and SunTrust Banks Inc.

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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
warehouse-backstage