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

L-Shaped Risk-Retention Strategy Could Be Way of Future

Friday, 13 January 2017

Issuers might have the financial capacity to retain vertical strips of every CMBS deal they bring to market this year in order to abide by recently enacted risk-retention rules, but that's not likely to happen. Instead, the thinking among many industry observers is that deals eventually will be structured using the so-called L structure. And that structure would be a keeper.

Defeasance Activity Falls Short of Expectations

Thursday, 12 January 2017

A total of 1,013 CMBS loans were defeased last year, compared to 1,332 loans a year earlier. The latest year's numbers will grow as additional data are tallied. But total figures for the year will still fall short of the $22.5 billion of loans that were defeased in 2015, according to Moody's Investors Service.

Wednesday, 11 January 2017

A venture of North American Properties and CBRE Global Investors is once again offering for sale the BB&T Tower, a 541,789-square-foot office property in Atlanta's midtown area. The buzz is that the venture is looking to sell the 25-story property for about $190 million, or $351/sf.

Wednesday, 11 January 2017

Real Capital Analytics has developed a measure of property quality, its Q-Score. It found CMBS lenders have, indeed, moved up the quality scale with the loans they write.

Wall of Maturities Becomes Low Hurdle; Bridge Lenders Chomp at the Bit

Wednesday, 11 January 2017

As a large number of loans face refinancing challenges, bridge lenders are anxious to lend a hand.

Houston's Marathon Oil Tower Returns to the Sales Market

Tuesday, 10 January 2017

CBRE Global Investors is offering for sale the 1.2 million-square-foot Marathon Oil Tower in Houston's Galleria submarket. It had brought the 41-story building to the sales market two years ago, but ultimately pulled it after bids came in lower than expected.

Investor Interest in Apartments Sees No Signs of Slowing

Tuesday, 10 January 2017

A total of 6,121 apartment properties were sold for $124.4 billion through last October, according to Real Capital Analytics. That compares with the 6,549 properties that sold for $119 million during the same period a year earlier.

Tuesday, 10 January 2017

A spike in hotel construction over the past two years has resulted in a softening of the market's fundamentals.

Office Sector Ends Year with Haves and Have-Nots

Tuesday, 10 January 2017

As prices for properties in major office markets continue to climb, investors are looking in secondary and tertiary markets in their quest for yield.

Retail Property Sector Stabilizes Despite Onslaught of Challenges

Tuesday, 10 January 2017

Rising vacancies from mall anchor tenants are forcing retail property owners to get creative in their attempt to improve the in-store shopping experience.

The Wall of Maturities: Looking Back and Forward

Tuesday, 10 January 2017

Nearly 70 percent of maturing CMBS loans were paid off last year. Will that trend carry over into 2017?

Rialto Stays Atop B-Piece Buyers; Grows Market Share

Monday, 09 January 2017

Rialto Capital Management continued to absolutely dominate the market for CMBS B-pieces last year, buying the subordinate classes of 16 conduit deals totaling $13.5 billion, for a 28.6 percent share of the market. A total of 18 investors bought into conduit deals last year, up from 11 in 2015 and double the number of players in 2014.

2016 Was Another Disappointing Year for CMBS Issuance

Monday, 09 January 2017

Issuance fell by nearly 30 percent last year. It was the first annual decline since 2009. The expectation for this year is that issuance will be flat or maybe decline yet again, as issuers grapple with risk-retention rules that went into effect on Dec. 24.

Monday, 09 January 2017

An in-depth look at the current state of the CMBS market, where it's been, and how it will impact commercial real estate moving forward.

Five Mile Offers Atlanta's 100 Peachtree Office Building

Friday, 06 January 2017

Five Mile Capital Partners is offering for sale 100 Peachtree St. NW, a 622,084-square-foot office building in downtown Atlanta. CBRE has the assignment. The property is seen selling for a price similar to the $105.50/sf that was paid in 2015 for the Centennial Tower, with 652,092 sf, at 101 Marietta St.

L-Shaped Risk-Retention Strategy Could Be Way of Future

Friday, 13 January 2017

Issuers might have the financial capacity to retain vertical strips of every CMBS deal they bring to market this year in order to abide by recently enacted risk-retention rules, but that's not likely to happen. Instead, the thinking among many industry observers is that deals eventually will be structured using the so-called L structure. And that structure would be a keeper.

Defeasance Activity Falls Short of Expectations

Thursday, 12 January 2017

A total of 1,013 CMBS loans were defeased last year, compared to 1,332 loans a year earlier. The latest year's numbers will grow as additional data are tallied. But total figures for the year will still fall short of the $22.5 billion of loans that were defeased in 2015, according to Moody's Investors Service.

Wall of Maturities Becomes Low Hurdle; Bridge Lenders Chomp at the Bit

Wednesday, 11 January 2017

As a large number of loans face refinancing challenges, bridge lenders are anxious to lend a hand.

Houston's Marathon Oil Tower Returns to the Sales Market

Tuesday, 10 January 2017

CBRE Global Investors is offering for sale the 1.2 million-square-foot Marathon Oil Tower in Houston's Galleria submarket. It had brought the 41-story building to the sales market two years ago, but ultimately pulled it after bids came in lower than expected.

Investor Interest in Apartments Sees No Signs of Slowing

Tuesday, 10 January 2017

A total of 6,121 apartment properties were sold for $124.4 billion through last October, according to Real Capital Analytics. That compares with the 6,549 properties that sold for $119 million during the same period a year earlier.

Office Sector Ends Year with Haves and Have-Nots

Tuesday, 10 January 2017

As prices for properties in major office markets continue to climb, investors are looking in secondary and tertiary markets in their quest for yield.

Retail Property Sector Stabilizes Despite Onslaught of Challenges

Tuesday, 10 January 2017

Rising vacancies from mall anchor tenants are forcing retail property owners to get creative in their attempt to improve the in-store shopping experience.

The Wall of Maturities: Looking Back and Forward

Tuesday, 10 January 2017

Nearly 70 percent of maturing CMBS loans were paid off last year. Will that trend carry over into 2017?

Rialto Stays Atop B-Piece Buyers; Grows Market Share

Monday, 09 January 2017

Rialto Capital Management continued to absolutely dominate the market for CMBS B-pieces last year, buying the subordinate classes of 16 conduit deals totaling $13.5 billion, for a 28.6 percent share of the market. A total of 18 investors bought into conduit deals last year, up from 11 in 2015 and double the number of players in 2014.

2016 Was Another Disappointing Year for CMBS Issuance

Monday, 09 January 2017

Issuance fell by nearly 30 percent last year. It was the first annual decline since 2009. The expectation for this year is that issuance will be flat or maybe decline yet again, as issuers grapple with risk-retention rules that went into effect on Dec. 24.

Five Mile Offers Atlanta's 100 Peachtree Office Building

Friday, 06 January 2017

Five Mile Capital Partners is offering for sale 100 Peachtree St. NW, a 622,084-square-foot office building in downtown Atlanta. CBRE has the assignment. The property is seen selling for a price similar to the $105.50/sf that was paid in 2015 for the Centennial Tower, with 652,092 sf, at 101 Marietta St.

Carmel Partners Tops $940Mln of Equity for Latest Fund

Wednesday, 04 January 2017

Carmel Partners has raised $941.8 million for its latest value-add investment vehicle. The fund, Carmel Partners Investment Fund VI LP, would be the sixth for the San Francisco investment manager, which specializes in apartment properties primarily on the West Coast, New York and Washington, D.C.

JPMorgan Unseats Deutsche Bank at Top of CMBS Bookrunner Ranking

Tuesday, 03 January 2017

JPMorgan Securities has unseated Deutsche Bank at the top of a ranking of bookrunners of domestic, private-label CMBS. It marks the first time in five years that Deutsche hasn't sat atop the ranking. Issuance for the year plunged by 28.1 percent to $68.3 billion as bond-market volatility during the first half stymied lending.

New York Community Lends $90Mln Against Manhattan's Van Dyke Apartments

Friday, 30 December 2016

New York Community Bank has provided $90 million of mortgage financing against the Van Dyke, a 135-unit apartment property on the Upper West Side of Manhattan. The loan takes out a $62.5 million CMBS loan that was set to mature next April.

Portland, Ore., Developer's Latest Value-Add Fund Gets Oversubscribed

Friday, 30 December 2016

Gerding Edlen's latest investment fund has been oversubscribed and is approaching its $400 million cap. The Portland, Ore., developer, which moved into the investment management business in 2011, so far has raised $365 million for its Gerding Edlen Green Cities III fund, which had a $350 million capital-raising target.

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

 

 

 

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