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

Friday, 16 February 2018

Oaktree Capital Management has launched a non-traded REIT, joining other institutional investors such as Blackstone Group, Starwood Capital Group and TH Real Estate in targeting retail investors. The Los Angeles company's Oaktree Real Estate Income Trust Inc. would target income-producing properties, real estate debt and real estate-related securities.

Lenders Saw 15 Percent Hike in Originations in 2017; Volumes Seen Dropping 3 Percent

Thursday, 15 February 2018

Commercial mortgage lenders enjoyed a 15 percent increase in origination volumes last year, according to a survey by the Mortgage Bankers Association, which estimated that volumes reached $566 billion. It expects lending volumes to decline by 3 percent this year, as a result of higher interest rates and a small universe of maturities.

Tenn. Developer Plans to Invest $350Mln on Retail Projects This Year

Wednesday, 14 February 2018

Hutton Co. wants to invest about $350 million this year on retail developments throughout the United States. The Chattanooga, Tenn., developer, which was founded 20 years ago, has completed about 1,000 projects for more than 50 retailers in more than 40 states.

PGIM Saw 6.5 Percent Hike in Lending Volume in 2017; Aims for $15Bln of Lending This Year

Tuesday, 13 February 2018

PGIM Real Estate Finance last year originated $14.8 billion of commercial mortgage financing, up 6.5 percent from the $13.9 billion it originated in 2016. It has up to $15 billion available to lend this year.

Monday, 12 February 2018

CIP Real Estate expects to spend about $150 million on value-add properties and sell about $100 million of stabilized assets. The Irvine, Calif., investment company will target industrial and office properties in California, Nevada and North Carolina.

New Orleans-Area Shopping Mall Brought to Sales Market

Friday, 09 February 2018

The Esplanade, a 966,997-square-foot shopping mall in suburban New Orleans, is being offered for sale. And it's likely to get redeveloped by whoever buys it. The property had been owned by Simon Property Group, which gave up on it nearly five years ago. It recently lost its Macy's anchor.

Liberty Selling Suburban Office Portfolio, Expanding Industrial Holdings

Thursday, 08 February 2018

Liberty Property Trust plans on completing its year-long repositioning effort this year and expects to sell its remaining suburban office holdings, using most of the proceeds to invest in industrial properties. It's aiming to sell from $600 million to $800 million of assets.

Northwestern Mutual Eyes Sale of Stake in Broadway Plaza in Walnut Creek, Calif.

Wednesday, 07 February 2018

Northwestern Mutual Real Estate is looking to sell its 50 percent stake in Broadway Plaza, a recently redeveloped shopping center with 889,000 square feet in Walnut Creek, Calif., that it owns with Macerich Co. The property's inline stores generated $1,326/sf in sales last year.

Investment Manager Raising $100Mln for Latest Apartment Fund

Tuesday, 06 February 2018

Hamilton Point Investments is seeking to raise $100 million for its sixth apartment investment fund. Its predecessor fund, through which it had raised $115 million two years ago, owns eight properties, has another under contract and likely will buy one additional property. It's pursuing properties whose value it could improve through upgrades.

Monday, 05 February 2018

RealAtom is an Arlington, Va., online platform that has received some $700 million of loan requests since it was launched in October 2016. It currently is in the process of raising what it hopes would be $2 million of funding that it would use to add staff and enhance its website.

Small-Balance Bridge Lender Eyes Second Funding Vehicle

Friday, 02 February 2018

Red Oak Capital Group, a three-year-old alternative lender specializing in the small- to middle-market space, is gearing up to raise its second investment vehicle. The Grand Rapids, Mich., company writes bridge loans of $500,000 to $3 million against most major property types across the country. It pursues loans that, for one reason or another, wouldn't fit a bank's lending parameters.

CMBS Sees Busiest January Since 2014

Thursday, 01 February 2018

Last month was the busiest January in terms of CMBS issuance since 2014. A total of nine deals totaling $4.9 billion were priced. That compares with $1.7 billion last year and $2.9 billion in 2016. Meanwhile, two conduits totaling $2.5 billion, including one that's the largest since 2011, are in the starting gates.

Ten-X Sees Supply Glut Impacting Apartment Fundamentals This Year

Wednesday, 31 January 2018

Ten-X Commercial projects that the national vacancy rate for apartment properties will increase to 5 percent, up from 4.7 percent last year. Meanwhile, it expects rents to increase by 3 percent, which compares with last year's 3.4 percent growth rate. Driving the slowdown: an increase in the supply of units.

Mesirow Launches Follow-Up Value-Add Apartment Investment Fund

Tuesday, 30 January 2018

The Chicago investment manager is gearing up its next value-add apartment fund and has set a $750 million equity-raising target. Mesirow Financial Real Estate Value Fund III would be a follow-up to an investment vehicle that raised $545 million of equity two years ago.

Bixby Land Co. Eyes Ratcheting Up Investment Management Business

Monday, 29 January 2018

Bixby Land Co., a Newport Beach, Calif., owner of office and industrial properties that traces its roots to the mid-1800s, expects to ratchet up its pace of acquisitions. It has lined up an institutional partner that will help it capitalize what it expects could be up to $400 million of acquisitions of industrial properties over the coming years.

Lenders Saw 15 Percent Hike in Originations in 2017; Volumes Seen Dropping 3 Percent

Thursday, 15 February 2018

Commercial mortgage lenders enjoyed a 15 percent increase in origination volumes last year, according to a survey by the Mortgage Bankers Association, which estimated that volumes reached $566 billion. It expects lending volumes to decline by 3 percent this year, as a result of higher interest rates and a small universe of maturities.

Tenn. Developer Plans to Invest $350Mln on Retail Projects This Year

Wednesday, 14 February 2018

Hutton Co. wants to invest about $350 million this year on retail developments throughout the United States. The Chattanooga, Tenn., developer, which was founded 20 years ago, has completed about 1,000 projects for more than 50 retailers in more than 40 states.

PGIM Saw 6.5 Percent Hike in Lending Volume in 2017; Aims for $15Bln of Lending This Year

Tuesday, 13 February 2018

PGIM Real Estate Finance last year originated $14.8 billion of commercial mortgage financing, up 6.5 percent from the $13.9 billion it originated in 2016. It has up to $15 billion available to lend this year.

New Orleans-Area Shopping Mall Brought to Sales Market

Friday, 09 February 2018

The Esplanade, a 966,997-square-foot shopping mall in suburban New Orleans, is being offered for sale. And it's likely to get redeveloped by whoever buys it. The property had been owned by Simon Property Group, which gave up on it nearly five years ago. It recently lost its Macy's anchor.

Liberty Selling Suburban Office Portfolio, Expanding Industrial Holdings

Thursday, 08 February 2018

Liberty Property Trust plans on completing its year-long repositioning effort this year and expects to sell its remaining suburban office holdings, using most of the proceeds to invest in industrial properties. It's aiming to sell from $600 million to $800 million of assets.

Northwestern Mutual Eyes Sale of Stake in Broadway Plaza in Walnut Creek, Calif.

Wednesday, 07 February 2018

Northwestern Mutual Real Estate is looking to sell its 50 percent stake in Broadway Plaza, a recently redeveloped shopping center with 889,000 square feet in Walnut Creek, Calif., that it owns with Macerich Co. The property's inline stores generated $1,326/sf in sales last year.

Investment Manager Raising $100Mln for Latest Apartment Fund

Tuesday, 06 February 2018

Hamilton Point Investments is seeking to raise $100 million for its sixth apartment investment fund. Its predecessor fund, through which it had raised $115 million two years ago, owns eight properties, has another under contract and likely will buy one additional property. It's pursuing properties whose value it could improve through upgrades.

Small-Balance Bridge Lender Eyes Second Funding Vehicle

Friday, 02 February 2018

Red Oak Capital Group, a three-year-old alternative lender specializing in the small- to middle-market space, is gearing up to raise its second investment vehicle. The Grand Rapids, Mich., company writes bridge loans of $500,000 to $3 million against most major property types across the country. It pursues loans that, for one reason or another, wouldn't fit a bank's lending parameters.

CMBS Sees Busiest January Since 2014

Thursday, 01 February 2018

Last month was the busiest January in terms of CMBS issuance since 2014. A total of nine deals totaling $4.9 billion were priced. That compares with $1.7 billion last year and $2.9 billion in 2016. Meanwhile, two conduits totaling $2.5 billion, including one that's the largest since 2011, are in the starting gates.

Ten-X Sees Supply Glut Impacting Apartment Fundamentals This Year

Wednesday, 31 January 2018

Ten-X Commercial projects that the national vacancy rate for apartment properties will increase to 5 percent, up from 4.7 percent last year. Meanwhile, it expects rents to increase by 3 percent, which compares with last year's 3.4 percent growth rate. Driving the slowdown: an increase in the supply of units.

Mesirow Launches Follow-Up Value-Add Apartment Investment Fund

Tuesday, 30 January 2018

The Chicago investment manager is gearing up its next value-add apartment fund and has set a $750 million equity-raising target. Mesirow Financial Real Estate Value Fund III would be a follow-up to an investment vehicle that raised $545 million of equity two years ago.

Bixby Land Co. Eyes Ratcheting Up Investment Management Business

Monday, 29 January 2018

Bixby Land Co., a Newport Beach, Calif., owner of office and industrial properties that traces its roots to the mid-1800s, expects to ratchet up its pace of acquisitions. It has lined up an institutional partner that will help it capitalize what it expects could be up to $400 million of acquisitions of industrial properties over the coming years.

Colony NorthStar Mortgage REIT Sees $2.5Bln of Loan Originations in 2018

Friday, 26 January 2018

Colony NorthStar Credit Real Estate Inc., which is being created through the merger and listing of two NorthStar-branded non-traded REITs, expects to originate up to $2.5 billion of debt investments this year. The mortgage REIT would be the second largest after Starwood Property Trust.

Ohio Police & Fire Commits to Latest Almanac Fund

Thursday, 25 January 2018

The Ohio Police & Fire Pension Fund has committed to invest up to $60 million in Almanac Realty Securities Fund VIII, which provides capital to real estate companies. The vehicle would be a follow-up to Fund VII, which had raised $1.3 billion in 2015. Since the fund series' inception in 1996, Almanac has made more than $4.4 billion of investments in 39 real estate operating companies.

Property Sales Volume Drops Again in 2017 by 7 Percent

Wednesday, 24 January 2018

The volume of commercial properties that changed hands last year declined by 7 percent to $463.9 billion, according to Real Capital Analytics. That marks the second year in a row in which sales volumes have declined. In 2016, they were down 11 percent from the previous year. Fewer entity-level transactions and big-ticket Manhattan office property sales took place last year.

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

  • 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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