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

Developer Eyes Refi, Potential Sale of Recently Completed Austin, Texas, Apartments

Friday, 22 March 2019

Stratus Properties Inc. will soon determine whether to put The Santal apartment property, with 448 units near downtown Austin, Texas, on the sales block, or refinance it. The property's second phase was recently completed and should be stabilized in the coming months. When that happens, Stratus will determine whether to proceed with a sale or refinancing, which would allow it to retire $59.2 million of construction debt against the property.

Long-Troubled CMBS Loan Against Retail Space in The Bronx, N.Y., Nears Refinancing

Thursday, 21 March 2019

The investment group that owns the 71,540-square-foot retail property at 300-318 Fordham Road in the Bronx, N.Y., has lined up a new mortgage for the property, which is encumbered by a modified $47.5 million CMBS loan that has been in special servicing since 2015. The new loan, said to be for about $31 million, should provide sufficient proceeds to retire the securitized loan's A-note.

REIT Focused on Manhattan Apartments Launched; Crowd Investors Targeted

Wednesday, 20 March 2019

Janine Yorio, who previously oversaw development for Andre Balazs Properties, has developed a platform through which accredited investors can buy into portfolios of geographically concentrated residential properties. She's partnered with Jesse Stein, who previously had led Etre Financial Inc., to form Compound Asset Management. Its first effort is a REIT that will target Manhattan apartment properties.

JLL to Buy HFF in $2Bln Transaction, Bolstering Capital Markets Chops

Tuesday, 19 March 2019

JLL Inc. has agreed to buy HFF in a deal valued at $2 billion, creating a full-service commercial real estate behemoth. The acquisition, through which HFF shareholders will receive a combination of cash and JLL stock, will allow JLL to substantially bolster its capital markets capabilities.

Credit Suisse, JPMorgan, Morgan Stanley Lend $900Mln for Retail Value Portfolio

Monday, 18 March 2019

The three lenders have provided financing against Retail Value Inc.'s remaining portfolio of 38 retail properties with 14 million square feet in the United States and Puerto Rico. The loan, which pays a coupon pegged to Libor plus 250 basis points, was used to retire a mortgage that was written only last year and paid a rate of Libor plus 315 bps.

Pebblebrook Could Sell Up to $900Mln of Hotels in Next 18 Months

Friday, 15 March 2019

The Bethesda, Md., company, which started paring its portfolio following its purchase of LaSalle Hotel Properties, plans to continue selling select properties in order to reduce its indebtedness and improve the quality and diversity of its remaining portfolio. So far, it has sold $1.1 billion of properties and could sell up to another $900 million in the coming year and a half.

Morgan Properties Pays $890.5Mln for 10 Pa., Va. Apartments; Becomes Top Dog in Pa.

Thursday, 14 March 2019

Morgan Properties has paid $890.5 million for 10 apartment properties with 4,130 units in the Philadelphia and northern Virginia suburbs of Washington, D.C. The properties were purchased from Lone Star Funds. The Pennsylvania properties increased the company's portfolio in the state to 9,300 units, making it the commonwealth's big kahuna.

KKR Launches Follow-Up Fund to Pursue CMBS B-Pieces

Wednesday, 13 March 2019

KKR & Co. has started raising its second CMBS B-piece investing vehicle. The fund, KKR Real Estate Credit Opportunity Partners II LP, would be a follow-up to Partners I, through which the New York REIT had raised $1.1 billion of equity commitments in 2017. That fund likely is reaching its capacity.

UBS Lends $240Mln Against Colonnade Office Complex Near Dallas

Tuesday, 12 March 2019

UBS has provided $240 million of financing against the 1.1 million-square-foot Colonnade office complex in the Dallas suburb of Addison, Texas. A $63 million subordinate piece of the financing was syndicated to EverWest Real Estate Investors. The debt allowed for the defeasance of a $152.4 million CMBS loan that was securitized six years ago.

 

Special Servicer Selling Troubled CMBS Loan; Comes Under Fire from Controlling-Class Holder

Monday, 11 March 2019

Midland Loan Services has agreed to sell the A1 piece of a distressed $107.8 million CMBS loan against a northern California office property. But evidently it didn't widely market the note, nor did it determine its fair value. That prompted the holder of the controlling class from one of the deals to object, arguing that the sale could result in an outsized loss to the trust holding the loan's A2 piece.

 

Apartment Specialist Electra America Nears Finish Line for Second Fund, Aims for Third

Friday, 08 March 2019

Electra America is close to raising a total of $400 million of equity commitments for its second apartment-investment fund and already has set its sights on a follow-up vehicle through which it would like to raise 50 percent more. The Tampa, Fla., company pursues value-add properties in the Southeastern United States and Texas.

Broadshore Capital Sees Up to $500Mln of Investments This Year; Has Eyes for Seniors

Thursday, 07 March 2019

Broadshore Capital Partners, the former Lowe Enterprises Investors, expects to make between $300 million and $500 million of investments this year. The investment manager, with $2 billion of assets under management, expects to favor properties in the seniors-housing sector, which will benefit from favorable demographics.

UC Funds Aims for Doubling of Bridge Lending Volume This Year

Wednesday, 06 March 2019

UC Funds, an alternative lender that in 2017 had launched a program through which it funds bridge loans against properties undergoing light transitions, is looking to double that program's volume this year to $1 billion. The program's volume was comprised overwhelmingly of loans against apartment properties.

Somera Road Keeps Chasing Opportunities as Defaults in CMBS Dwindle

Tuesday, 05 March 2019

Somera Road Inc., a New York investor widely known for buying distressed loans, particularly from CMBS deals, has diversified its business substantially. While it's still highly opportunistic, it no longer relies solely on the CMBS market for its business leads.

Student-Housing Sector Shifts, Impacting CMBS Loan Performance

Monday, 04 March 2019

The volume of delinquent CMBS loans against student-housing properties has skyrocketed by 144 percent over the 12 months through the end of February. While the universe of CMBS loans against student properties totals only $4.9 billion, the skyrocketing rate points to certain risks that are unique to the sector.

Developer Eyes Refi, Potential Sale of Recently Completed Austin, Texas, Apartments

Friday, 22 March 2019

Stratus Properties Inc. will soon determine whether to put The Santal apartment property, with 448 units near downtown Austin, Texas, on the sales block, or refinance it. The property's second phase was recently completed and should be stabilized in the coming months. When that happens, Stratus will determine whether to proceed with a sale or refinancing, which would allow it to retire $59.2 million of construction debt against the property.

Long-Troubled CMBS Loan Against Retail Space in The Bronx, N.Y., Nears Refinancing

Thursday, 21 March 2019

The investment group that owns the 71,540-square-foot retail property at 300-318 Fordham Road in the Bronx, N.Y., has lined up a new mortgage for the property, which is encumbered by a modified $47.5 million CMBS loan that has been in special servicing since 2015. The new loan, said to be for about $31 million, should provide sufficient proceeds to retire the securitized loan's A-note.

REIT Focused on Manhattan Apartments Launched; Crowd Investors Targeted

Wednesday, 20 March 2019

Janine Yorio, who previously oversaw development for Andre Balazs Properties, has developed a platform through which accredited investors can buy into portfolios of geographically concentrated residential properties. She's partnered with Jesse Stein, who previously had led Etre Financial Inc., to form Compound Asset Management. Its first effort is a REIT that will target Manhattan apartment properties.

JLL to Buy HFF in $2Bln Transaction, Bolstering Capital Markets Chops

Tuesday, 19 March 2019

JLL Inc. has agreed to buy HFF in a deal valued at $2 billion, creating a full-service commercial real estate behemoth. The acquisition, through which HFF shareholders will receive a combination of cash and JLL stock, will allow JLL to substantially bolster its capital markets capabilities.

Credit Suisse, JPMorgan, Morgan Stanley Lend $900Mln for Retail Value Portfolio

Monday, 18 March 2019

The three lenders have provided financing against Retail Value Inc.'s remaining portfolio of 38 retail properties with 14 million square feet in the United States and Puerto Rico. The loan, which pays a coupon pegged to Libor plus 250 basis points, was used to retire a mortgage that was written only last year and paid a rate of Libor plus 315 bps.

Pebblebrook Could Sell Up to $900Mln of Hotels in Next 18 Months

Friday, 15 March 2019

The Bethesda, Md., company, which started paring its portfolio following its purchase of LaSalle Hotel Properties, plans to continue selling select properties in order to reduce its indebtedness and improve the quality and diversity of its remaining portfolio. So far, it has sold $1.1 billion of properties and could sell up to another $900 million in the coming year and a half.

Morgan Properties Pays $890.5Mln for 10 Pa., Va. Apartments; Becomes Top Dog in Pa.

Thursday, 14 March 2019

Morgan Properties has paid $890.5 million for 10 apartment properties with 4,130 units in the Philadelphia and northern Virginia suburbs of Washington, D.C. The properties were purchased from Lone Star Funds. The Pennsylvania properties increased the company's portfolio in the state to 9,300 units, making it the commonwealth's big kahuna.

KKR Launches Follow-Up Fund to Pursue CMBS B-Pieces

Wednesday, 13 March 2019

KKR & Co. has started raising its second CMBS B-piece investing vehicle. The fund, KKR Real Estate Credit Opportunity Partners II LP, would be a follow-up to Partners I, through which the New York REIT had raised $1.1 billion of equity commitments in 2017. That fund likely is reaching its capacity.

UBS Lends $240Mln Against Colonnade Office Complex Near Dallas

Tuesday, 12 March 2019

UBS has provided $240 million of financing against the 1.1 million-square-foot Colonnade office complex in the Dallas suburb of Addison, Texas. A $63 million subordinate piece of the financing was syndicated to EverWest Real Estate Investors. The debt allowed for the defeasance of a $152.4 million CMBS loan that was securitized six years ago.

 

Special Servicer Selling Troubled CMBS Loan; Comes Under Fire from Controlling-Class Holder

Monday, 11 March 2019

Midland Loan Services has agreed to sell the A1 piece of a distressed $107.8 million CMBS loan against a northern California office property. But evidently it didn't widely market the note, nor did it determine its fair value. That prompted the holder of the controlling class from one of the deals to object, arguing that the sale could result in an outsized loss to the trust holding the loan's A2 piece.

 

Apartment Specialist Electra America Nears Finish Line for Second Fund, Aims for Third

Friday, 08 March 2019

Electra America is close to raising a total of $400 million of equity commitments for its second apartment-investment fund and already has set its sights on a follow-up vehicle through which it would like to raise 50 percent more. The Tampa, Fla., company pursues value-add properties in the Southeastern United States and Texas.

Broadshore Capital Sees Up to $500Mln of Investments This Year; Has Eyes for Seniors

Thursday, 07 March 2019

Broadshore Capital Partners, the former Lowe Enterprises Investors, expects to make between $300 million and $500 million of investments this year. The investment manager, with $2 billion of assets under management, expects to favor properties in the seniors-housing sector, which will benefit from favorable demographics.

UC Funds Aims for Doubling of Bridge Lending Volume This Year

Wednesday, 06 March 2019

UC Funds, an alternative lender that in 2017 had launched a program through which it funds bridge loans against properties undergoing light transitions, is looking to double that program's volume this year to $1 billion. The program's volume was comprised overwhelmingly of loans against apartment properties.

Somera Road Keeps Chasing Opportunities as Defaults in CMBS Dwindle

Tuesday, 05 March 2019

Somera Road Inc., a New York investor widely known for buying distressed loans, particularly from CMBS deals, has diversified its business substantially. While it's still highly opportunistic, it no longer relies solely on the CMBS market for its business leads.

Student-Housing Sector Shifts, Impacting CMBS Loan Performance

Monday, 04 March 2019

The volume of delinquent CMBS loans against student-housing properties has skyrocketed by 144 percent over the 12 months through the end of February. While the universe of CMBS loans against student properties totals only $4.9 billion, the skyrocketing rate points to certain risks that are unique to the sector.

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

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  • 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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