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

BofA Lends $375Mln Against Office, Industrial Portfolio

Friday, 20 October 2017

Bank of America has provided $375 million of financing against 10 office and industrial properties with 3.7 million square feet owned by Griffin Capital Essential Asset REIT Inc. The loan allows the El Segundo, Calif., non-traded REIT to pay down a credit line it has with a group of lenders led by KeyBank.

Starwood Capital Launches Non-Traded REIT

Thursday, 19 October 2017

Starwood Capital Group is following in the footsteps of other large institutional investors by targeting retail investors with its first non-traded REIT, furthering the sector's evolution. The company, Starwood Real Estate Income Trust Inc., has filed to raise up to $5 billion that it would invest in stabilized commercial properties and certain debt instruments.

Wednesday, 18 October 2017

REITs issued a record $37.7 billion of unsecured notes through the end of September and have since tacked on another $1.15 billion, bringing volume for the year so far to $39.3 billion, topping last year's record-setting $38.6 billion of issuance.

Workspace Property Trust Looks to Expand Suburban Office Portfolio

Tuesday, 17 October 2017

Workspace Property Trust, which was formed two years ago by Thomas Rizk, the former president and chief executive of Mack-Cali Realty Group, has filed to go public. The REIT will focus on office and office-flex properties in suburban markets.

Distressed Debt Against Retail Space in The Bronx, N.Y., Comes to Market

Monday, 16 October 2017

Special servicer Torchlight Loan Services has put the $47.7 million of distressed CMBS financing against four retail buildings with a total of 68,220 square feet in the Bronx, N.Y., on the sales block. The loan was split in two as part of a 2012 modification and is being offered through Mission Capital Advisors.

$63Mln Winning Bid Gets Moreno Valley Mall in Calif.

Friday, 13 October 2017

The Moreno Valley Mall in California's Inland Empire is said to have received a bid of $63 million at an online auction late last month, meeting the property's reserve price. The property backs a $76.1 million CMBS loan that has been with special servicer CWCapital Asset Management for nearly seven years.

Ashkenazy Pays $123.2Mln for Boston's South Station Retail/Office Component

Thursday, 12 October 2017

Ashkenazy Acquisition Corp. has paid $123.2 million, or $613.60/sf, for the office and retail component of Boston's South Station rail hub. The New York investor bought the 200,775-square-foot property from Blackstone Group's Equity Office affiliate, which had offered it through HFF.

Denver-Area Retail Property Backing Troubled CMBS Loan Sells for $48Mln

Wednesday, 11 October 2017

Hutensky Capital Partners has paid $48 million, or just less than $110/sf, for the Northglenn Marketplace, a 439,063-square-foot retail center in the Denver suburb of Northglenn, Colo. The sale, orchestrated by Faris Lee Investments, finally resolves a $50.9 million loan against the property. The loan had been in special servicing since 2011.

Buyer of Monogram Residential to Continue Pursuing Core-Plus Investments

Tuesday, 10 October 2017

The investment vehicle that Greystar Real Estate Partners formed to acquire Monogram Residential Trust Inc. three months ago will continue pursuing other investments in what the company calls core-plus properties across the country. The perpetual-life fund, Greystar Growth and Income Fund LP, could raise additional capital and will maintain a roughly 50 percent leverage level.

Rialto Remains Most-Active Buyer of CMBS Conduit B-Pieces

Friday, 06 October 2017

Rialto Capital Management continues to rule the CMBS conduit B-piece roost. The Miami investment manager, a unit of homebuilder Lennar Corp., invested in 40 percent of the $12.3 billion of conduit deals issued during the third quarter, bringing its year-to-date activity to 12 deals with a balance of $11.2 billion.

Electra America Buying Apartment Properties in Southeast and Texas

Thursday, 05 October 2017

Electra America, a unit of a Tel Aviv real estate company, is actively buying up class-B apartment properties in certain markets in the southeastern United States and Texas. So far this year, it's purchased 15 properties for $638 million and has another six properties under contract. Meanwhile, it's selling seven properties.

Goldman Sachs Tops Ranking of Loan Contributors

Wednesday, 04 October 2017

Goldman Sachs has contributed 106 loans with a balance of $8 billion to CMBS during the first nine months of the year, putting it atop a ranking of loan contributors to the sector. It outdid JPMorgan Chase Bank, which had contributed 91.4 loans totaling $7.6 billion, for a 12.7 percent share.

CMBS Issuance Rebounds in 3Q; YTD Volume Up 35 Percent from 2016

Tuesday, 03 October 2017

Third-quarter issuance of private-label CMBS totaled $26.3 billion, up 22 percent from the second quarter. That brings volume for the year to $60.4 billion, up nearly 35 percent from the $44.8 billion that had been issued to this point last year.

CMBS Loan Against Newark, N.J., Offices Purchased Through Fair-Value Option

Monday, 02 October 2017

The $121.2 million of CMBS debt against the 782,806-square-foot Two Gateway Center office building in Newark, N.J., was retired through the use of a fair-value purchase option. The loan, which was securitized through CD, 2006-CD3, had been in special servicing for nearly two years.

Real Capital Analytics Alters Methodology for Commercial Property Price Indices

Friday, 29 September 2017

Real Capital Analytics has changed the way it calculates its widely used repeat-sales commercial property price indices, providing users more granularity into price movements of individual property sectors. While the modifications won't result in visible changes, they're designed to make the index more stable.

BofA Lends $375Mln Against Office, Industrial Portfolio

Friday, 20 October 2017

Bank of America has provided $375 million of financing against 10 office and industrial properties with 3.7 million square feet owned by Griffin Capital Essential Asset REIT Inc. The loan allows the El Segundo, Calif., non-traded REIT to pay down a credit line it has with a group of lenders led by KeyBank.

Starwood Capital Launches Non-Traded REIT

Thursday, 19 October 2017

Starwood Capital Group is following in the footsteps of other large institutional investors by targeting retail investors with its first non-traded REIT, furthering the sector's evolution. The company, Starwood Real Estate Income Trust Inc., has filed to raise up to $5 billion that it would invest in stabilized commercial properties and certain debt instruments.

Workspace Property Trust Looks to Expand Suburban Office Portfolio

Tuesday, 17 October 2017

Workspace Property Trust, which was formed two years ago by Thomas Rizk, the former president and chief executive of Mack-Cali Realty Group, has filed to go public. The REIT will focus on office and office-flex properties in suburban markets.

Distressed Debt Against Retail Space in The Bronx, N.Y., Comes to Market

Monday, 16 October 2017

Special servicer Torchlight Loan Services has put the $47.7 million of distressed CMBS financing against four retail buildings with a total of 68,220 square feet in the Bronx, N.Y., on the sales block. The loan was split in two as part of a 2012 modification and is being offered through Mission Capital Advisors.

$63Mln Winning Bid Gets Moreno Valley Mall in Calif.

Friday, 13 October 2017

The Moreno Valley Mall in California's Inland Empire is said to have received a bid of $63 million at an online auction late last month, meeting the property's reserve price. The property backs a $76.1 million CMBS loan that has been with special servicer CWCapital Asset Management for nearly seven years.

Ashkenazy Pays $123.2Mln for Boston's South Station Retail/Office Component

Thursday, 12 October 2017

Ashkenazy Acquisition Corp. has paid $123.2 million, or $613.60/sf, for the office and retail component of Boston's South Station rail hub. The New York investor bought the 200,775-square-foot property from Blackstone Group's Equity Office affiliate, which had offered it through HFF.

Denver-Area Retail Property Backing Troubled CMBS Loan Sells for $48Mln

Wednesday, 11 October 2017

Hutensky Capital Partners has paid $48 million, or just less than $110/sf, for the Northglenn Marketplace, a 439,063-square-foot retail center in the Denver suburb of Northglenn, Colo. The sale, orchestrated by Faris Lee Investments, finally resolves a $50.9 million loan against the property. The loan had been in special servicing since 2011.

Buyer of Monogram Residential to Continue Pursuing Core-Plus Investments

Tuesday, 10 October 2017

The investment vehicle that Greystar Real Estate Partners formed to acquire Monogram Residential Trust Inc. three months ago will continue pursuing other investments in what the company calls core-plus properties across the country. The perpetual-life fund, Greystar Growth and Income Fund LP, could raise additional capital and will maintain a roughly 50 percent leverage level.

Rialto Remains Most-Active Buyer of CMBS Conduit B-Pieces

Friday, 06 October 2017

Rialto Capital Management continues to rule the CMBS conduit B-piece roost. The Miami investment manager, a unit of homebuilder Lennar Corp., invested in 40 percent of the $12.3 billion of conduit deals issued during the third quarter, bringing its year-to-date activity to 12 deals with a balance of $11.2 billion.

Electra America Buying Apartment Properties in Southeast and Texas

Thursday, 05 October 2017

Electra America, a unit of a Tel Aviv real estate company, is actively buying up class-B apartment properties in certain markets in the southeastern United States and Texas. So far this year, it's purchased 15 properties for $638 million and has another six properties under contract. Meanwhile, it's selling seven properties.

Goldman Sachs Tops Ranking of Loan Contributors

Wednesday, 04 October 2017

Goldman Sachs has contributed 106 loans with a balance of $8 billion to CMBS during the first nine months of the year, putting it atop a ranking of loan contributors to the sector. It outdid JPMorgan Chase Bank, which had contributed 91.4 loans totaling $7.6 billion, for a 12.7 percent share.

CMBS Issuance Rebounds in 3Q; YTD Volume Up 35 Percent from 2016

Tuesday, 03 October 2017

Third-quarter issuance of private-label CMBS totaled $26.3 billion, up 22 percent from the second quarter. That brings volume for the year to $60.4 billion, up nearly 35 percent from the $44.8 billion that had been issued to this point last year.

CMBS Loan Against Newark, N.J., Offices Purchased Through Fair-Value Option

Monday, 02 October 2017

The $121.2 million of CMBS debt against the 782,806-square-foot Two Gateway Center office building in Newark, N.J., was retired through the use of a fair-value purchase option. The loan, which was securitized through CD, 2006-CD3, had been in special servicing for nearly two years.

Real Capital Analytics Alters Methodology for Commercial Property Price Indices

Friday, 29 September 2017

Real Capital Analytics has changed the way it calculates its widely used repeat-sales commercial property price indices, providing users more granularity into price movements of individual property sectors. While the modifications won't result in visible changes, they're designed to make the index more stable.

Arbor Commercial Seeks to Build Muscle in Crowdfunding World

Thursday, 28 September 2017

An affiliate of Arbor Commercial Mortgage is raising equity for a San Antonio apartment, the fifth deal for its nascent crowdfunding business, ArborCrowd. It's looking to differentiate itself from the crowd by providing institutional-quality opportunities to accredited investors who previously couldn't partake in such deals.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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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