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

Friday, 22 July 2016

Stockbridge Capital has struck a deal to pay about $160 million, or $229/sf, for five buildings with 700,000 square feet in the Corporate Centre office park in the Cool Springs area of Nashville, Tenn. It's buying the buildings from JPMCB Strategic Property Fund.

Louis Rogers Aims to Grow DST Business into Bigger Investment Manager

Thursday, 21 July 2016

Louis Rogers, a long-time specialist in structuring tax-deferred property exchanges, is aiming to buy more than $100 million of real estate through the rest of the year that would be syndicated through Delaware Statutory Trusts, or DSTs. He's also eyeing the launch of a fund and REIT as part of an effort to increase his Capital Square 1031's assets under management to $1 billion.

MetLife Lends $110Mln Against Manhattan Office Building

Wednesday, 20 July 2016

Metropolitan Life Insurance Co. has provided $110 million of floating-rate financing against 200 West 57th St., 158,607-square-foot office building in midtown Manhattan. Proceeds of the loan were used to retire $108 million of existing debt, including a $91 million mortgage that was securitized in 2007 and was coming due next February.

Equity Commonwealth Seeks Sale of Offices in Baltimore, D.C. Suburbs

Tuesday, 19 July 2016

Equity Commonwealth is offering for sale a portfolio of four office properties with 1.4 million square feet in Baltimore and the Maryland suburbs of Washington, D.C. While it'll take offers for individual properties, the Chicago REIT has a preference to sell the portfolio as a whole. Cushman & Wakefield has been tapped to market the portfolio.

KBS Aims to Sell Assets of Apartment REIT

Tuesday, 19 July 2016

KBS Legacy Partners Apartment REIT Inc. has hired HFF to market its 11-property apartment portfolio for sale. The properties have a total of 3,039 units in seven states and are 95 percent occupied. The Newport Beach, Calif., REIT had acquired them over the past five years for a combined $417.3 million.

Savoy Park's $50Mln B-Note Gets Paid Off in Full

Tuesday, 19 July 2016

The $50 million B-note that resulted from the modification of the $210 million CMBS loan against the 1,800-unit Savoy Park apartment complex in Harlem, N.Y., has been paid off in full. That's unusual. Most B-notes typically generate substantial losses when they're resolved.

Monday, 18 July 2016

Metropolitan Life Insurance Co. has provided a $190 million loan against the 302-room Ritz-Carlton Key Biscayne, just off the coast of Miami. The loan was used to defease, or replace with government securities, $164 million of debt, $160 million of which was securitized.

AXA Provides $295Mln Loan Against Manhattan's One Seaport Plaza

Friday, 15 July 2016

AXA Equitable Life Insurance Co. has provided a $295 million loan against One Seaport Plaza, a 1.4 million-square-foot office property in lower Manhattan. The financing, arranged by Singer & Bassuk Organization, pays a fixed coupon of 3.35 percent and was used to retire $240 million of existing debt that included a $225 million component that was securitized.

BofA Lends $450Mln Against International Square in Washington, D.C.

Thursday, 14 July 2016

Bank of America has provided $450 million of financing against International Square in Washington, D.C., allowing the property's owner to retire $270 million of CMBS financing that was slated to mature next January.

Life Insurers Saw 7.7 Percent Hike in Mortgage Portfolios Last Year

Wednesday, 13 July 2016

Life insurance companies tracked by Fitch Ratings increased the holdings of mortgages in their general accounts by $25.7 billion, or 7.7 percent last year, to $360 billion. They also increased their allocation to the mortgage sector to 12.4 percent of invested assets from 11.6 percent in 2014.

Capital One Writes $238.9Mln Freddie Loan Against Savoy Park

Tuesday, 12 July 2016

Capital One Multifamily Finance has written a $238.9 million Freddie Mac loan against the Savoy Park Apartments in Manhattan's Harlem area. The loan, arranged by Meridian Capital, helped fund Fairstead Capital's $315 million purchase of the 1,790-unit property.

Investment Manager Sees No Rush to Grow

Monday, 11 July 2016

Ten Capital Management, a three-year-old investment manager that pursues middle-market deals, is sticking to its guns. It plans to methodically pursue small- to medium-sized properties in healthy and diverse markets that others might overlook and capitalize through its cadre of high net-worth investors.

Friday, 08 July 2016

Rialto Capital Management invested in the subordinate bonds that comprise the B-pieces of three CMBS conduit deals during the second quarter, giving it a 35.6 percent share of the market for the period. During the first half, it bought the B-pieces of nearly one-third of the $18.5 billion of conduit deals that were issued.

Alexandria Real Estate to Pay $725Mln for Cambridge, Mass., Complex

Thursday, 07 July 2016

Alexandria Real Estate Equities Inc. has struck a deal to pay $725 million, or about $1,124/sf, for One Kendall Square, a seven-building science and technology campus in East Cambridge, Mass. The Pasadena, Calif., REIT said the price it's paying results in a capitalization rate of 4.7 percent. It's aiming to goose that by bringing the property's below-market rents to market levels.

EB-5 Regional Center Program Likely Headed to Another Temporary Extension

Wednesday, 06 July 2016

The EB-5 regional center program, slated for a Sept. 30 expiration, is likely headed toward another temporary extension without any reform. Efforts to reform the legislation this year likely won't happen as legislators are reluctant to pursue comprehensive immigration reform.

Louis Rogers Aims to Grow DST Business into Bigger Investment Manager

Thursday, 21 July 2016

Louis Rogers, a long-time specialist in structuring tax-deferred property exchanges, is aiming to buy more than $100 million of real estate through the rest of the year that would be syndicated through Delaware Statutory Trusts, or DSTs. He's also eyeing the launch of a fund and REIT as part of an effort to increase his Capital Square 1031's assets under management to $1 billion.

MetLife Lends $110Mln Against Manhattan Office Building

Wednesday, 20 July 2016

Metropolitan Life Insurance Co. has provided $110 million of floating-rate financing against 200 West 57th St., 158,607-square-foot office building in midtown Manhattan. Proceeds of the loan were used to retire $108 million of existing debt, including a $91 million mortgage that was securitized in 2007 and was coming due next February.

Equity Commonwealth Seeks Sale of Offices in Baltimore, D.C. Suburbs

Tuesday, 19 July 2016

Equity Commonwealth is offering for sale a portfolio of four office properties with 1.4 million square feet in Baltimore and the Maryland suburbs of Washington, D.C. While it'll take offers for individual properties, the Chicago REIT has a preference to sell the portfolio as a whole. Cushman & Wakefield has been tapped to market the portfolio.

KBS Aims to Sell Assets of Apartment REIT

Tuesday, 19 July 2016

KBS Legacy Partners Apartment REIT Inc. has hired HFF to market its 11-property apartment portfolio for sale. The properties have a total of 3,039 units in seven states and are 95 percent occupied. The Newport Beach, Calif., REIT had acquired them over the past five years for a combined $417.3 million.

Savoy Park's $50Mln B-Note Gets Paid Off in Full

Tuesday, 19 July 2016

The $50 million B-note that resulted from the modification of the $210 million CMBS loan against the 1,800-unit Savoy Park apartment complex in Harlem, N.Y., has been paid off in full. That's unusual. Most B-notes typically generate substantial losses when they're resolved.

AXA Provides $295Mln Loan Against Manhattan's One Seaport Plaza

Friday, 15 July 2016

AXA Equitable Life Insurance Co. has provided a $295 million loan against One Seaport Plaza, a 1.4 million-square-foot office property in lower Manhattan. The financing, arranged by Singer & Bassuk Organization, pays a fixed coupon of 3.35 percent and was used to retire $240 million of existing debt that included a $225 million component that was securitized.

BofA Lends $450Mln Against International Square in Washington, D.C.

Thursday, 14 July 2016

Bank of America has provided $450 million of financing against International Square in Washington, D.C., allowing the property's owner to retire $270 million of CMBS financing that was slated to mature next January.

Life Insurers Saw 7.7 Percent Hike in Mortgage Portfolios Last Year

Wednesday, 13 July 2016

Life insurance companies tracked by Fitch Ratings increased the holdings of mortgages in their general accounts by $25.7 billion, or 7.7 percent last year, to $360 billion. They also increased their allocation to the mortgage sector to 12.4 percent of invested assets from 11.6 percent in 2014.

Capital One Writes $238.9Mln Freddie Loan Against Savoy Park

Tuesday, 12 July 2016

Capital One Multifamily Finance has written a $238.9 million Freddie Mac loan against the Savoy Park Apartments in Manhattan's Harlem area. The loan, arranged by Meridian Capital, helped fund Fairstead Capital's $315 million purchase of the 1,790-unit property.

Investment Manager Sees No Rush to Grow

Monday, 11 July 2016

Ten Capital Management, a three-year-old investment manager that pursues middle-market deals, is sticking to its guns. It plans to methodically pursue small- to medium-sized properties in healthy and diverse markets that others might overlook and capitalize through its cadre of high net-worth investors.

Alexandria Real Estate to Pay $725Mln for Cambridge, Mass., Complex

Thursday, 07 July 2016

Alexandria Real Estate Equities Inc. has struck a deal to pay $725 million, or about $1,124/sf, for One Kendall Square, a seven-building science and technology campus in East Cambridge, Mass. The Pasadena, Calif., REIT said the price it's paying results in a capitalization rate of 4.7 percent. It's aiming to goose that by bringing the property's below-market rents to market levels.

EB-5 Regional Center Program Likely Headed to Another Temporary Extension

Wednesday, 06 July 2016

The EB-5 regional center program, slated for a Sept. 30 expiration, is likely headed toward another temporary extension without any reform. Efforts to reform the legislation this year likely won't happen as legislators are reluctant to pursue comprehensive immigration reform.

Los Angeles Apartment Investor Seeks to Spread Wings; Eyes Fund

Tuesday, 05 July 2016

Universe Holdings has been strategically raising capital and is said to be in the early stages of raising what would be its first fund, as it gears up to expand the size and scope of its portfolio. Its existing portfolio is populated with small- to mid-sized properties, many in and around Los Angeles.

CMBS Market Has Slowest Quarter in 4 Years

Friday, 01 July 2016

The CMBS market slowed to a near trickle in the second quarter. Only 17 deals totaling a mere $9.5 billion were issued - the lowest quarterly volume since 2012 - bringing total issuance for the year to $27.3 billion, down 47.3 percent from last year.

MetLife Lends $132.9Mln Against Seattle Office Building

Thursday, 30 June 2016

Metropolitan Life Insurance Co. has provided $132.9 million of floating-rate financing against 901 Fifth Ave., a 540,589-square-foot office building in downtown Seattle. The financing helped a venture of Schnitzer West and Investcorp fund its $223.3 million, or $413/sf purchase of the 41-story building.

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

Top Bookrunners Domestic, Private-Label CMBS - 2015
Investment Bank #Deals Vol$mln MktShr%
Deutsche Bank 18.23 17,210.79 18.25
Wells Fargo Securities 17.77 14,715.47 15.61
JPMorgan Securities 14.43 11,589.38 12.29
Morgan Stanley 14.47 9,715.97 10.30
Credit Suisse 10.75 8,593.95 9.11

 

MOODY'S/RCA CPPI

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

Top CMBS Loan Contributors - 2015
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 161.6 10,858.98 11.55
Deutsche Bank 218.0 8,867.97 9.43
Morgan Stanley 241.5 8,264.67 8.79
Bank of America 242.8 6,533.69 6.95
Citigroup 217.4 6,274.94 6.67

 

 

 

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
warehouse-backstage