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

Monday, 21 August 2017

PGIM Real Estate Finance has provided $33 million of bridge financing against the Graceland shopping center, with 397,992 square feet in Columbus, Ohio. The loan, with a two-year term and options for up to three one-year extensions, was funded through a recently launched program to lend against core-plus properties. Capital comes from a fund that so far has raised $300 million.

RMR Group Plans to List Shares for First Mortgage REIT

Friday, 18 August 2017

The Newton, Mass., company expects to complete its initial public offering for Tremont Mortgage Trust by the end of the year. It recently applied to have the REIT's shares listed on Nasdaq. It is the first mortgage REIT for RMR, which manages four other publically traded REITs.

Macerich to Line Up $600Mln of Debt Against 4 Malls

Thursday, 17 August 2017

The Santa Monica, Calif., REIT is planning to line up about $600 million of debt against four of its malls. One of the properties is unencumbered by debt. It may line up additional financing against other properties later this year.

HPT Acquires Crowne Plaza Hotel in Ohio, Buying Another in N.C.

Wednesday, 16 August 2017

Hospitality Properties Trust, a Newton, Mass., REIT, has paid $48.9 million for the 419-room Crowne Plaza & Lofts hotel in Columbus, Ohio. Meanwhile, it is paying $44 million for a 300-room Crowne Plaza in Charlotte, N.C.

Tier REIT Considers Reducing Exposure to Houston Office Market

Tuesday, 15 August 2017

The Dallas-based REIT is considering reducing its presence in the Houston office market. It owns three properties with a total of about 2.23 million square feet that it carries on its balance sheet at a combined value of $535 million. One of the portfolio's buildings backs $77.9 million of CMBS debt.

Ukraine Turns to U.S. Loan-Sales Specialists to Resolve Troubled Loans

Monday, 14 August 2017

The country of Ukraine, which has been in a years-long banking crisis, has turned to U.S. contractors for help in resolving it. The country's Deposit Guarantee Fund and its national bank have hired First Financial Network and DebtX to handle the sale of $410 million of nonperforming loans.

Healthcare Realty to Pay $612.5Mln for 15 Atlanta Medical Offices

Friday, 11 August 2017

Healthcare Realty Trust Inc. has struck a deal to pay $612.5 million for a portfolio of 15 medical-office buildings with 1.3 million square feet in the Atlanta area. The Nashville, Tenn., REIT is buying the properties from Meadows & Ohly.

Ten-X Identifies Top-5 Buy, Sell Apartment Markets

Thursday, 10 August 2017

Investors looking to purchase apartment properties in the United States may want to focus on non-major markets in the South and West that have enjoyed strong employment growth and haven't faced surges of new supply. Sacramento, Calif., tops a list of markets compiled by Ten-X Commercial with the best prospects for investors, while New York is at the top of "Sell" list.

Developer Pays $19.6Mln for Ala. Retail Center Backing Troubled CMBS Loan

Wednesday, 09 August 2017

The Eastern Shore Centre, a 557,513-square-foot retail property in Spanish Fort, Ala., was sold to Allied Dynamics for $19.6 million, resulting in a $56.1 million loss to the CMBS trust that had held a $66.5 million mortgage against the property. The loan had been securitized through Wachovia Bank Commercial Mortgage Trust, 2006-C26.

Crow Holdings Launches Latest Value-Add Investment Fund

Tuesday, 08 August 2017

The commercial real estate arm of Crow Holdings has started raising its latest investment fund, Crow Holdings Realty Partners VIII LP, which will pursue value-add investments in properties and operating companies. The fund would be a follow-up to Partners VII, which raised $1.85 billion of investor commitments.

AVR Realty Sells Apartment Portfolio for $510Mln

Monday, 07 August 2017

Carlton Associates Inc. has partnered with investor David Werner to pay $510 million, or $141,863/unit, for a portfolio of 11 apartment properties from AVR Realty. The properties have 3,595 units in South Carolina, Tennessee, Louisiana and Georgia.

REIT Offers for Sale Schaumburg, Ill., Office Buildings

Friday, 04 August 2017

The former Zurich Towers office complex in suburban Chicago is being brought to the sales market. Retail Properties of America Inc., its owner, hopes to sell the property, now known as the Schaumburg Towers, by the end of the year. CBRE has been hired to market the property for sale.

Knighthead Funding Raising $250Mln for Latest Lending Fund

Thursday, 03 August 2017

Knighthead Funding is well on its way to raising its second fund, which it uses to fund bridge loans to facilitate property acquisitions, repositionings and recapitalizations. The investment manager so far has raised roughly $135 million of its $250 million target for its Knighthead Special Situations Real Estate Fund II.

Cousins Plans to Sell Orlando, Fla., Office Buildings

Wednesday, 02 August 2017

Cousins Properties Inc. has decided to quit the Orlando, Fla., market, where it owns three downtown office properties with more than 1 million square feet. It's planning to sell them this year. The company took over the properties through its recent acquisition of Parkway Properties Inc.

Sale of Hilltop Mall to Hit CMBS Deal Hard

Tuesday, 01 August 2017

Hilltop Mall, a 1.1 million-square-foot regional shopping center in the East San Francisco Bay city of Richmond, Calif., that was purchased by a venture of LBG Real Estate Cos. and Aviva Investors, sold for more than its $12 million appraised value. That will result in a hefty loss to Morgan Stanley Capital I Inc., 2005-HQ7, which held a $64.4 million loan against 564,410 sf at the property.

RMR Group Plans to List Shares for First Mortgage REIT

Friday, 18 August 2017

The Newton, Mass., company expects to complete its initial public offering for Tremont Mortgage Trust by the end of the year. It recently applied to have the REIT's shares listed on Nasdaq. It is the first mortgage REIT for RMR, which manages four other publically traded REITs.

Macerich to Line Up $600Mln of Debt Against 4 Malls

Thursday, 17 August 2017

The Santa Monica, Calif., REIT is planning to line up about $600 million of debt against four of its malls. One of the properties is unencumbered by debt. It may line up additional financing against other properties later this year.

HPT Acquires Crowne Plaza Hotel in Ohio, Buying Another in N.C.

Wednesday, 16 August 2017

Hospitality Properties Trust, a Newton, Mass., REIT, has paid $48.9 million for the 419-room Crowne Plaza & Lofts hotel in Columbus, Ohio. Meanwhile, it is paying $44 million for a 300-room Crowne Plaza in Charlotte, N.C.

Tier REIT Considers Reducing Exposure to Houston Office Market

Tuesday, 15 August 2017

The Dallas-based REIT is considering reducing its presence in the Houston office market. It owns three properties with a total of about 2.23 million square feet that it carries on its balance sheet at a combined value of $535 million. One of the portfolio's buildings backs $77.9 million of CMBS debt.

Ukraine Turns to U.S. Loan-Sales Specialists to Resolve Troubled Loans

Monday, 14 August 2017

The country of Ukraine, which has been in a years-long banking crisis, has turned to U.S. contractors for help in resolving it. The country's Deposit Guarantee Fund and its national bank have hired First Financial Network and DebtX to handle the sale of $410 million of nonperforming loans.

Healthcare Realty to Pay $612.5Mln for 15 Atlanta Medical Offices

Friday, 11 August 2017

Healthcare Realty Trust Inc. has struck a deal to pay $612.5 million for a portfolio of 15 medical-office buildings with 1.3 million square feet in the Atlanta area. The Nashville, Tenn., REIT is buying the properties from Meadows & Ohly.

Ten-X Identifies Top-5 Buy, Sell Apartment Markets

Thursday, 10 August 2017

Investors looking to purchase apartment properties in the United States may want to focus on non-major markets in the South and West that have enjoyed strong employment growth and haven't faced surges of new supply. Sacramento, Calif., tops a list of markets compiled by Ten-X Commercial with the best prospects for investors, while New York is at the top of "Sell" list.

Developer Pays $19.6Mln for Ala. Retail Center Backing Troubled CMBS Loan

Wednesday, 09 August 2017

The Eastern Shore Centre, a 557,513-square-foot retail property in Spanish Fort, Ala., was sold to Allied Dynamics for $19.6 million, resulting in a $56.1 million loss to the CMBS trust that had held a $66.5 million mortgage against the property. The loan had been securitized through Wachovia Bank Commercial Mortgage Trust, 2006-C26.

Crow Holdings Launches Latest Value-Add Investment Fund

Tuesday, 08 August 2017

The commercial real estate arm of Crow Holdings has started raising its latest investment fund, Crow Holdings Realty Partners VIII LP, which will pursue value-add investments in properties and operating companies. The fund would be a follow-up to Partners VII, which raised $1.85 billion of investor commitments.

AVR Realty Sells Apartment Portfolio for $510Mln

Monday, 07 August 2017

Carlton Associates Inc. has partnered with investor David Werner to pay $510 million, or $141,863/unit, for a portfolio of 11 apartment properties from AVR Realty. The properties have 3,595 units in South Carolina, Tennessee, Louisiana and Georgia.

REIT Offers for Sale Schaumburg, Ill., Office Buildings

Friday, 04 August 2017

The former Zurich Towers office complex in suburban Chicago is being brought to the sales market. Retail Properties of America Inc., its owner, hopes to sell the property, now known as the Schaumburg Towers, by the end of the year. CBRE has been hired to market the property for sale.

Knighthead Funding Raising $250Mln for Latest Lending Fund

Thursday, 03 August 2017

Knighthead Funding is well on its way to raising its second fund, which it uses to fund bridge loans to facilitate property acquisitions, repositionings and recapitalizations. The investment manager so far has raised roughly $135 million of its $250 million target for its Knighthead Special Situations Real Estate Fund II.

Cousins Plans to Sell Orlando, Fla., Office Buildings

Wednesday, 02 August 2017

Cousins Properties Inc. has decided to quit the Orlando, Fla., market, where it owns three downtown office properties with more than 1 million square feet. It's planning to sell them this year. The company took over the properties through its recent acquisition of Parkway Properties Inc.

Sale of Hilltop Mall to Hit CMBS Deal Hard

Tuesday, 01 August 2017

Hilltop Mall, a 1.1 million-square-foot regional shopping center in the East San Francisco Bay city of Richmond, Calif., that was purchased by a venture of LBG Real Estate Cos. and Aviva Investors, sold for more than its $12 million appraised value. That will result in a hefty loss to Morgan Stanley Capital I Inc., 2005-HQ7, which held a $64.4 million loan against 564,410 sf at the property.

Mission Capital Tapped to Sell Chesapeake Square Mall

Friday, 28 July 2017

Torchlight Loan Services has put the Chesapeake Square Mall, which it took through foreclosure roughly a year ago, on the sales block. Mission Capital Advisors has been hired to market the Chesapeake, Va., property, which had been encumbered by a $60.2 million CMBS loan. An Aug. 15 bid deadline has been set.

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

 

MOODY'S/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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