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

MetLife, New York Life Lend $177.8Mln Against Sanctuary Park Near Atlanta

Wednesday, 28 September 2016

The life insurance companies provided $177.8 million of mortgage financing against the 1.6 million-square-foot office property in the Atlanta suburb of Alpharetta, Ga. It consists of $92.2 million of fixed-rate debt that matures in October 2026 and $85.6 million of floating-rate debt that matures in October 2021. The floating-rate debt can be extended for an additional year.

Uncertainty in Condo Market Puts Brakes on Sale of Manhattan Development Sites

Tuesday, 27 September 2016

The velocity of residential development-site sales in New York City has slowed sharply. The amount of time it takes to sell individual units has increased, so developers have become skittish about paying ever-increasing prices for land on which to develop new units.

Monday, 26 September 2016

Hines Global REIT II has struck a deal to pay $190 million, or about $317/sf, for Rookwood Commons and Rookwood Pavilion, two neighboring retail properties with 600,071 square feet in Cincinnati. A venture of JPMorgan Asset Management and Casto Lifestyle Properties is the seller.

 

Glendale, Calif., Office Building Seen Selling for $128.53Mln

Friday, 23 September 2016

PGIM Real Estate has struck a deal to sell the 408,034-square-foot Glendale City Center office complex in Glendale, Calif., for $128.53 million, or about $315/sf. Beacon Capital Partners is buying the property, which is about 90 percent occupied.

Boston-Area Mall Backing $64.5Mln CMBS Loan Hits Sales Market

Friday, 23 September 2016

RP Realty Partners is offering for sale the Walpole Mall, a 402,206-square-foot retail property in Walpole, Mass. Colliers International has the listing for the suburban Boston property, which is encumbered by $64.5 million of debt that's securitized in two CMBS deals. The property could sell for more than $100 million.

REIT Issuance of Unsecured Notes on Record Pace

Thursday, 22 September 2016

So far this year, REITs have issued $28.6 billion of unsecured notes, making it all but certain that issuance for the full year will top the $30.6 billion record set two years ago. Driving issuance: historically low interest rates and a group of new issuers, many of which were formed only recently.

233 Wilshire in Santa Monica, Calif., Seen Selling for $139.5Mln

Wednesday, 21 September 2016

Blackstone Group has struck a deal to sell a 128,935-square-foot office property at 233 Wilshire Blvd. in downtown Santa Monica, Calif., a suburb of Los Angeles. Douglas Emmett Inc., a Santa Monica, Calif., REIT, is buying the property, which is expected to sell for $139.5 million, or about $1,082/sf. HFF is brokering the deal.

1,984-Unit Apartment Portfolio in Baltimore Offered for Sale

Tuesday, 20 September 2016

Harbor Group International is offering for sale a portfolio of six apartment properties with 1,984 units in the Woodlawn area of Baltimore. The portfolio would be valued at about $256 million, based on the $16.1 million of net operating income it generated last year and the area's prevailing capitalization rate of 6.3 percent for garden-style apartments. JLL has the assignment.

Monday, 19 September 2016

A deal in which Talon Real Estate Holding Corp., a small Minneapolis property investor, had to buy a portfolio of 13 Minnesota industrial and flex properties from Greenfield Partners has fallen apart. The portfolio totals 915,693 sf and comprises the Minneapolis-area properties that Greenfield had purchased three years ago from Liberty Property Trust.

LNR Taps HFF to Market for Sale James Center in Richmond, Va.

Friday, 16 September 2016

LNR Partners has hired HFF to market for sale the James Center, a 974,268-square-foot office complex in downtown Richmond, Va., that had served as collateral for $150 million of CMBS debt that had defaulted early this year. The three-building complex, at 901, 1021 and 1051 East Cary St., was appraised in March at a value of $132.4 million.

Principal Offers San Francisco's 150 Spear St. for Sale

Thursday, 15 September 2016

Principal Real Estate Investors is offering for sale 150 Spear St., a 265,406-square-foot office property in the South Financial District of San Francisco through Cushman & Wakefield. The investment manager, which owns the property on behalf of an investment account, values it at nearly $180 million, or $680/sf.

Wednesday, 14 September 2016

Citigroup has provided $540 million of mortgage financing against a portfolio of 48 self-storage properties with 30,800 units in six states. The senior portion of the financing likely will be securitized. It was used by the property's owner, Simply Self Storage of Orlando, Fla., to prepay $328.5 million of debt, $300 million of which was securitized.

CMBS Market Poised for $5.9Bln of Issuance

Wednesday, 14 September 2016

The CMBS market has come back to life after a month-long hiatus. Two single-borrower transactions have priced, another is in the wings and the first of four conduit transactions was poised to price today. The seven deals total $5.9 billion, which would total 15 percent of the year's issuance so far.

SL Green, Ivanhoe Seek to Refinance $340Mln CMBS Loan Against Manhattan Office

Tuesday, 13 September 2016

A venture of SL Green Realty Corp. and Ivanhoe Cambridge, which had been looking to sell the 674,000 square feet of office space at 1745 Broadway in midtown Manhattan, has shifted gears and is now looking to refinance the existing $340 million mortgage. The property's sole tenant recently renewed its lease through 2033.

 

Randy Reiff-Led Team Launches Full-Service Real Estate Lending Platform

Monday, 12 September 2016

The team of seasoned industry veterans that ran FirstKey Lending has formed Allegiant Real Estate Capital, a full-service commercial real estate debt platform. The idea behind the company, led by Randy Reiff, chief executive and chief investment officer, is to be able to provide a broad range of capital solutions against properties across the country.

MetLife, New York Life Lend $177.8Mln Against Sanctuary Park Near Atlanta

Wednesday, 28 September 2016

The life insurance companies provided $177.8 million of mortgage financing against the 1.6 million-square-foot office property in the Atlanta suburb of Alpharetta, Ga. It consists of $92.2 million of fixed-rate debt that matures in October 2026 and $85.6 million of floating-rate debt that matures in October 2021. The floating-rate debt can be extended for an additional year.

Uncertainty in Condo Market Puts Brakes on Sale of Manhattan Development Sites

Tuesday, 27 September 2016

The velocity of residential development-site sales in New York City has slowed sharply. The amount of time it takes to sell individual units has increased, so developers have become skittish about paying ever-increasing prices for land on which to develop new units.

Glendale, Calif., Office Building Seen Selling for $128.53Mln

Friday, 23 September 2016

PGIM Real Estate has struck a deal to sell the 408,034-square-foot Glendale City Center office complex in Glendale, Calif., for $128.53 million, or about $315/sf. Beacon Capital Partners is buying the property, which is about 90 percent occupied.

Boston-Area Mall Backing $64.5Mln CMBS Loan Hits Sales Market

Friday, 23 September 2016

RP Realty Partners is offering for sale the Walpole Mall, a 402,206-square-foot retail property in Walpole, Mass. Colliers International has the listing for the suburban Boston property, which is encumbered by $64.5 million of debt that's securitized in two CMBS deals. The property could sell for more than $100 million.

REIT Issuance of Unsecured Notes on Record Pace

Thursday, 22 September 2016

So far this year, REITs have issued $28.6 billion of unsecured notes, making it all but certain that issuance for the full year will top the $30.6 billion record set two years ago. Driving issuance: historically low interest rates and a group of new issuers, many of which were formed only recently.

233 Wilshire in Santa Monica, Calif., Seen Selling for $139.5Mln

Wednesday, 21 September 2016

Blackstone Group has struck a deal to sell a 128,935-square-foot office property at 233 Wilshire Blvd. in downtown Santa Monica, Calif., a suburb of Los Angeles. Douglas Emmett Inc., a Santa Monica, Calif., REIT, is buying the property, which is expected to sell for $139.5 million, or about $1,082/sf. HFF is brokering the deal.

1,984-Unit Apartment Portfolio in Baltimore Offered for Sale

Tuesday, 20 September 2016

Harbor Group International is offering for sale a portfolio of six apartment properties with 1,984 units in the Woodlawn area of Baltimore. The portfolio would be valued at about $256 million, based on the $16.1 million of net operating income it generated last year and the area's prevailing capitalization rate of 6.3 percent for garden-style apartments. JLL has the assignment.

LNR Taps HFF to Market for Sale James Center in Richmond, Va.

Friday, 16 September 2016

LNR Partners has hired HFF to market for sale the James Center, a 974,268-square-foot office complex in downtown Richmond, Va., that had served as collateral for $150 million of CMBS debt that had defaulted early this year. The three-building complex, at 901, 1021 and 1051 East Cary St., was appraised in March at a value of $132.4 million.

Principal Offers San Francisco's 150 Spear St. for Sale

Thursday, 15 September 2016

Principal Real Estate Investors is offering for sale 150 Spear St., a 265,406-square-foot office property in the South Financial District of San Francisco through Cushman & Wakefield. The investment manager, which owns the property on behalf of an investment account, values it at nearly $180 million, or $680/sf.

CMBS Market Poised for $5.9Bln of Issuance

Wednesday, 14 September 2016

The CMBS market has come back to life after a month-long hiatus. Two single-borrower transactions have priced, another is in the wings and the first of four conduit transactions was poised to price today. The seven deals total $5.9 billion, which would total 15 percent of the year's issuance so far.

SL Green, Ivanhoe Seek to Refinance $340Mln CMBS Loan Against Manhattan Office

Tuesday, 13 September 2016

A venture of SL Green Realty Corp. and Ivanhoe Cambridge, which had been looking to sell the 674,000 square feet of office space at 1745 Broadway in midtown Manhattan, has shifted gears and is now looking to refinance the existing $340 million mortgage. The property's sole tenant recently renewed its lease through 2033.

 

Randy Reiff-Led Team Launches Full-Service Real Estate Lending Platform

Monday, 12 September 2016

The team of seasoned industry veterans that ran FirstKey Lending has formed Allegiant Real Estate Capital, a full-service commercial real estate debt platform. The idea behind the company, led by Randy Reiff, chief executive and chief investment officer, is to be able to provide a broad range of capital solutions against properties across the country.

D.C.'s Loree Grand at Union Place Apartments for Sale

Thursday, 08 September 2016

TIAA is offering for sale Loree Grand at Union Place, a 212-unit apartment property in the H Street/North of Massachusetts Avenue area of Washington, D.C. Eastdil Secured has the assignment. The building, at 250 K St. NE, could sell for more than $85 million.

Goldman Sachs Provides $400Mln Loan Against Chicago's 540 West Madison

Wednesday, 07 September 2016

Goldman Sachs Mortgage Co. has provided $400 million of mortgage financing against 540 West Madison St., a 1.1 million-square-foot office property in downtown Chicago. The financing allowed the property's owner to retire $250 million of debt, most of which was securitized and wasn't coming due until January 2018.

Wells Fargo's Servicing Portfolio Tops Half Trillion Mark; PNC Nips at Heels

Tuesday, 06 September 2016

PNC Bank continued to increase its servicing portfolio over the past 12 months and is now within striking distance of perennial servicing powerhouse Wells Fargo Bank. PNC's portfolio totaled $499.1 billion as of the end of June, according to the Mortgage Bankers Association. That put it within $3.1 billion of Wells Fargo, whose portfolio topped the half-trillion-dollar mark.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

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CMBS 2.0 Spreads

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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
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