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

Domestic CMBS Volume Jumps By One-Third in 1Q, to $26.3Bln

Wednesday, 01 April 2015

A total of $26.3 billion of domestic, private-label CMBS was issued during the first quarter, up from $19.8 billion a year ago. Volumes were driven by the 18 single-borrower transactions totaling $12.5 billion, more than triple the $3.5 billion of such deals that were issued during the same time last year. Deutsche Bank remained comfortably at the top of the bookrunner ranking. But JPMorgan edged it out in the loan-contributor ranking.

Office Building in Boston's Back Bay Hits Sales Market; $300Mln Price Seen

Tuesday, 31 March 2015

The New England Teamsters and Industry Pension Fund is offering for sale 131 Dartmouth St., a 370,000-square-foot office and retail building in Boston's Back Bay neighborhood. JLL has been hired to sell the property, which could sell for about $300 million, or $810.81/sf. That would result in a capitalization rate of about 5 percent.

Monday, 30 March 2015

KGS-Alpha Capital Markets, which four years ago moved into the CMBS arena by hiring a team of professionals who previously were with Citadel Securities, has started originating conduit loans. It's contributing 14 loans to an upcoming transaction and the company says it's committed to the sector.

Strategic Properties Plans $1.5Bln of Multifamily Investments In Coming Years

Friday, 27 March 2015

Strategic Properties of North America, which recently paid $53 million, or $106,854 /unit for the 496-unit Meadows Apartment Homes complex in Lakemoor, Ill., is planning on making some $1.5 billion of apartment investments through 2018.

Prolific Residential Lender Enters Commercial Mortgage Space

Friday, 27 March 2015

Freedom Mortgage Corp., among the more active residential lenders, has moved into the commercial mortgage business and aims to write up to $750 million of relatively small-balance loans this year that it would sell through the CMBS market. It's contributing nearly $30 million of loans to an upcoming deal.

Thursday, 26 March 2015

TIAA-CREF has teamed with Norges Bank Investment Management to pay $307 million, or roughly $788.69/sf, for Republic Square I, a 389,252-square-foot office property in downtown Washington, D.C. The venture is assuming $185 million of debt that was provided two years ago by a group of lenders led by Morgan Stanley.

Behringer Harvard Opportunity Eyes Disposition of Remaining Assets

Thursday, 26 March 2015

Behringer Harvard Opportunity REIT I Inc. is now in its disposition phase and is putting a number of its properties up for sale. It's looking to sell three properties in the short term and would like to have its entire portfolio liquidated within the next two to three years. The company carries its assets on its balance sheet at a value of roughly $315 million.

Goldman Lends $345Mln Against Seattle Office Portfolio

Wednesday, 25 March 2015

Goldman Sachs Mortgage Co. has provided $345 million of financing against a portfolio of nine office properties in downtown Seattle with 1.6 million square feet owned by Martin Selig Real Estate. A big chunk of the loan was used to defease a $242 million loan that was securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2005-LDP5.

2 Office Properties in Suburban Austin Seen Fetching About $49.1Mln

Tuesday, 24 March 2015

 A venture of Moore Associates and Velocis Partners is in the market to sell two office properties with 174,797 square feet in suburban Austin, Texas. The two properties, Arboretum Atrium and Las Cimas I, are being offered through Transwestern.

Blue Vista Capital Eyes $400Mln to Fund Sponsor-Equity Investments

Tuesday, 24 March 2015

Blue Vista Capital Management is seeking $400 million for a fund that would, like its predecessor, specialize in providing the so-called sponsor equity that is needed by operating partners to complete the purchase of properties in deals with larger institutional partners. The fund is aiming for returns of 17 percent to 19 percent.

Monday, 23 March 2015

Franklin Street Properties Corp. has struck a deal to buy Two Ravinia Drive, a 407,854-square-foot office property in Atlanta's Central Perimeter. The REIT is said to be paying a price in the high $70 million range. It's buying the 17-story building from a venture of the Teacher Retirement System of Texas and Parkway Properties Inc., in a deal arranged by Cushman & Wakefield.

Madison International Launches Follow-Up Fund Within One Year

Friday, 20 March 2015

Madison International Realty is seeking to raise $950 million for an investment fund that it has started raising, less than a year after it closed marketing for its $825 million predecessor vehicle. That quick turnaround runs counter to prevailing wisdom that investment managers have had to slow down their capital-raising because of the challenges they're facing in finding suitable investments.

Two Harbors Gears Up to Write Senior, Mezz Loans

Friday, 20 March 2015

Two Harbors Investment Corp., a mortgage REIT sponsored by Pine River Capital Management that last year started a move into the commercial mortgage business, is looking to write a broad range of floating-rate debt instruments. It will write senior and mezzanine loans, B-notes and preferred equity in deals of between $10 million and $100 million apiece.

Friday, 20 March 2015

CBRE Global Investors has struck a deal to pay about $200 million for United Plaza and 1650 Arch St., two office properties with a combined 1.2 million square feet in downtown Philadelphia. It's buying the buildings from Tier REIT Inc. The Dallas REIT had carried the two properties on its balance sheet at a value of $191.2 million.

AEW Pays $153Mln for 691-Unit Apartment Portfolio in Atlanta

Thursday, 19 March 2015

The Boston investment manager has purchased three apartment properites with 691 units from Worthing Cos. for $153 million. The properties were developed within the past eight years and are 96 percent occupied. Rents average $1,611/unit

Domestic CMBS Volume Jumps By One-Third in 1Q, to $26.3Bln

Wednesday, 01 April 2015

A total of $26.3 billion of domestic, private-label CMBS was issued during the first quarter, up from $19.8 billion a year ago. Volumes were driven by the 18 single-borrower transactions totaling $12.5 billion, more than triple the $3.5 billion of such deals that were issued during the same time last year. Deutsche Bank remained comfortably at the top of the bookrunner ranking. But JPMorgan edged it out in the loan-contributor ranking.

Office Building in Boston's Back Bay Hits Sales Market; $300Mln Price Seen

Tuesday, 31 March 2015

The New England Teamsters and Industry Pension Fund is offering for sale 131 Dartmouth St., a 370,000-square-foot office and retail building in Boston's Back Bay neighborhood. JLL has been hired to sell the property, which could sell for about $300 million, or $810.81/sf. That would result in a capitalization rate of about 5 percent.

Strategic Properties Plans $1.5Bln of Multifamily Investments In Coming Years

Friday, 27 March 2015

Strategic Properties of North America, which recently paid $53 million, or $106,854 /unit for the 496-unit Meadows Apartment Homes complex in Lakemoor, Ill., is planning on making some $1.5 billion of apartment investments through 2018.

Prolific Residential Lender Enters Commercial Mortgage Space

Friday, 27 March 2015

Freedom Mortgage Corp., among the more active residential lenders, has moved into the commercial mortgage business and aims to write up to $750 million of relatively small-balance loans this year that it would sell through the CMBS market. It's contributing nearly $30 million of loans to an upcoming deal.

Behringer Harvard Opportunity Eyes Disposition of Remaining Assets

Thursday, 26 March 2015

Behringer Harvard Opportunity REIT I Inc. is now in its disposition phase and is putting a number of its properties up for sale. It's looking to sell three properties in the short term and would like to have its entire portfolio liquidated within the next two to three years. The company carries its assets on its balance sheet at a value of roughly $315 million.

Goldman Lends $345Mln Against Seattle Office Portfolio

Wednesday, 25 March 2015

Goldman Sachs Mortgage Co. has provided $345 million of financing against a portfolio of nine office properties in downtown Seattle with 1.6 million square feet owned by Martin Selig Real Estate. A big chunk of the loan was used to defease a $242 million loan that was securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2005-LDP5.

2 Office Properties in Suburban Austin Seen Fetching About $49.1Mln

Tuesday, 24 March 2015

 A venture of Moore Associates and Velocis Partners is in the market to sell two office properties with 174,797 square feet in suburban Austin, Texas. The two properties, Arboretum Atrium and Las Cimas I, are being offered through Transwestern.

Blue Vista Capital Eyes $400Mln to Fund Sponsor-Equity Investments

Tuesday, 24 March 2015

Blue Vista Capital Management is seeking $400 million for a fund that would, like its predecessor, specialize in providing the so-called sponsor equity that is needed by operating partners to complete the purchase of properties in deals with larger institutional partners. The fund is aiming for returns of 17 percent to 19 percent.

Madison International Launches Follow-Up Fund Within One Year

Friday, 20 March 2015

Madison International Realty is seeking to raise $950 million for an investment fund that it has started raising, less than a year after it closed marketing for its $825 million predecessor vehicle. That quick turnaround runs counter to prevailing wisdom that investment managers have had to slow down their capital-raising because of the challenges they're facing in finding suitable investments.

Two Harbors Gears Up to Write Senior, Mezz Loans

Friday, 20 March 2015

Two Harbors Investment Corp., a mortgage REIT sponsored by Pine River Capital Management that last year started a move into the commercial mortgage business, is looking to write a broad range of floating-rate debt instruments. It will write senior and mezzanine loans, B-notes and preferred equity in deals of between $10 million and $100 million apiece.

AEW Pays $153Mln for 691-Unit Apartment Portfolio in Atlanta

Thursday, 19 March 2015

The Boston investment manager has purchased three apartment properites with 691 units from Worthing Cos. for $153 million. The properties were developed within the past eight years and are 96 percent occupied. Rents average $1,611/unit

New York Life Lends $135Mln Against Boston Office Building

Wednesday, 18 March 2015

New York Life Insurance Co. has provided $135 million of mortgage financing against 100 Cambridge St., a 599,696-square-foot office building in Boston that recently was purchased by Intercontinental Real Estate Corp.

Investor Group Strikes Deal to Buy Atlanta's Securities Centre Complex

Wednesday, 18 March 2015

A venture of Atlanta Property Group and Angelo, Gordon & Co. has struck a deal to buy One and Two Securities Centre, a two-building office complex with 521,957 square feet in Atlanta's Buckhead market. The complex backs a $65.4 million CMBS loan. The price it's fetching is said to reflect a capitalization rate of more than 6 percent, which would translate to something in the neighborhood of $50 million.

Building and Land Seeks $385Mln of Financing for Atlanta Office Buy

Tuesday, 17 March 2015

Building & Land Technology is in the market for roughly $385 million of floating-rate financing to fund its pending acquisition of the Concourse Corporate Center, a two-building office property with 2.3 million square feet in the Atlanta suburb of Sandy Springs, Ga.

Raith Capital Seen Raising Second Investment Fund

Tuesday, 17 March 2015

The fund would be a follow-up to the New York investment manager's Raith Real Estate Fund I, through which it had targeted raising $350 million in an effort that was started in 2013. The fund has pursued investments in distressed loans and CMBS B-pieces and so far has invested $500 million of equity. Through last September, the vehicle has provided investors with a 19.24 percent return.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4

 

 

MOODY'S/RCA CPPI

 

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Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4

 

 

 

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