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

Thursday, 27 April 2017

Pennsylvania REIT, which has been refining its portfolio of retail properties since 2012, is now looking to sell interests in a number of its properties in order to generate proceeds to fund their redevelopment. It's been taking prospective investors on tours of its properties, both its top-flight and lesser-quality assets.

TPG Capital Eyes Taking Mortgage REIT Public

Wednesday, 26 April 2017

Investment manager TPG Capital, which has some $72 billion of assets, including real estate, under management, is taking its real estate investment operation public. The company, TPG Real Estate Finance Trust Inc., will join a growing list of publicly funded entities that are investing in relatively short-term loans against substantial commercial properties.

Oaktree Raises $700Mln for Follow-Up Real Estate Debt Fund

Tuesday, 25 April 2017

Oaktree Capital Group has raised some $700 million for a follow-up investment fund that will pursue investments in a variety of real estate debt instruments, including mortgages, mezzanine loans and CMBS. The fund's capital-raising target is said to be north of $1 billion.

Baltimore-Area Apartment Portfolio Offered for Sale

Monday, 24 April 2017

A venture of Rockpoint Group and Sawyer Realty Holdings is offering for sale a portfolio of four apartment properties with 2,729 units in the Baltimore area. The portfolio, which is being offered through CBRE, could sell for $260 million, or $95,273/sf. Offers are being solicited only for the portfolio in its entirety.

Goldman Raises Nearly $1Bln for Latest Real Estate Credit Partners Fund

Friday, 21 April 2017

Goldman Sachs has raised nearly $1 billion for its latest real estate debt-investment vehicle, Broad Street Real Estate Credit Partners III LP. The fund would be a follow-up to Credit Partners II, through which the investment bank's merchant banking arm three years ago had raised an estimated $1.8 billion.

CWCapital Seeks to Monetize Asset Management System

Thursday, 20 April 2017

CWCapital Asset Management, among the most active special servicers in the CMBS world, is proactively turning to its asset management system, which it has been perfecting over the years, to generate income as the volume of loans it handles is expected to shrink.

Office Space at Chicago's Sullivan Center for Sale

Wednesday, 19 April 2017

A venture of Madison Capital and KKR & Co. is offering for sale the 833,000 square feet of office space at the Sullivan Center mixed-use building in Chicago's Central Loop. JLL has the sales assignment. The offering comes on the heels of the venture selling the building's retail space to Acadia Realty Trust.

AVG Partners Buys Loan on UBS Center in Stamford, Conn., for $54.2Mln

Tuesday, 18 April 2017

AVG Partners, which owns the UBS Center in Stamford, Conn., has purchased the defaulted CMBS loan against the 682,327-square-foot property. The Beverly Hills, Calif., investor paid $54.2 million for the loan, which was securitized through LB-UBS Commercial Mortgage Trust, 2004-C1. That compares to the empty property's most recent appraised value of $44.4 million.

Monday, 17 April 2017

Hertz Investment Group is aiming to generate $105 million from the sale of the Bank of America Tower in Jacksonville, Fla. The property is encumbered by $79.4 million of financing, of which $35.5 million was securitized. The financing matures in July, but can be extended for up to two additional years. CBRE is offering the property.

Torchlight Lent $159.2Mln Against Charlotte, N.C., Sarasota, Fla., Offices

Thursday, 13 April 2017

Torchlight Investors has provided $159.2 million of financing to facilitate Dilweg Cos.' $115.5 million purchase and stabilization of the First Citizens Bank Plaza in Charlotte, N.C., and Sarasota City Center in Sarasota, Fla. The two properties are collectively 49 percent occupied.

Baltimore's 200 St. Paul Plaza Offered for Sale

Wednesday, 12 April 2017

Kornblatt Co. is offering for sale 200 St. Paul Plaza, a 266,672-square-foot office property in downtown Baltimore. The property serves as collateral for $34.7 million of CMBS debt that is locked out from prepayment through October 2020.

Rialto's FDIC Portfolio Reaches Clean-Up Call

Tuesday, 11 April 2017

Rialto Capital Management, which seven years ago bought stakes in two massive portfolios of troubled commercial and residential loans from the FDIC, has started winding the portfolios down. What originally was $3.05 billion of assets has been whittled down $173 million.

Monday, 10 April 2017

The departure of AR Global Investments from the non-traded REIT world, coupled with uncertainty surrounding a substantial pending regulation, has put a big damper on the sector's ability to raise capital. Only $4.8 billion was raised last year, according to Summit Investment Research, down from $10.2 billion in 2015.

$1.4Bln Raised Through Structured Tax-Deferred Vehicles in 2016; 1Q Sees $365.7Mln

Friday, 07 April 2017

A total of $1.4 billion of equity was raised on behalf of structured tax-deferred exchange vehicles last year, according to Mountain Dell Consulting. It provides further evidence that the structured exchange business, which had nearly become extinct between 2009 and 2012, continues to strengthen. Last year's volume was up nearly a third from the $1.1 billion that was raised in 2015.

Synthetic Securities Launched to Provide Hedge for Property Price Changes

Thursday, 06 April 2017

Global Index Group, which creates index-based synthetic financial products, has developed a pair of securities that would allow institutional investors to take a long or short position on changes in commercial property values. While they're not the first attempt to provide the industry with a synthetic way of getting access to the sector, they're unique in that they eliminate the counterparty risk all previous efforts faced.

TPG Capital Eyes Taking Mortgage REIT Public

Wednesday, 26 April 2017

Investment manager TPG Capital, which has some $72 billion of assets, including real estate, under management, is taking its real estate investment operation public. The company, TPG Real Estate Finance Trust Inc., will join a growing list of publicly funded entities that are investing in relatively short-term loans against substantial commercial properties.

Oaktree Raises $700Mln for Follow-Up Real Estate Debt Fund

Tuesday, 25 April 2017

Oaktree Capital Group has raised some $700 million for a follow-up investment fund that will pursue investments in a variety of real estate debt instruments, including mortgages, mezzanine loans and CMBS. The fund's capital-raising target is said to be north of $1 billion.

Baltimore-Area Apartment Portfolio Offered for Sale

Monday, 24 April 2017

A venture of Rockpoint Group and Sawyer Realty Holdings is offering for sale a portfolio of four apartment properties with 2,729 units in the Baltimore area. The portfolio, which is being offered through CBRE, could sell for $260 million, or $95,273/sf. Offers are being solicited only for the portfolio in its entirety.

Goldman Raises Nearly $1Bln for Latest Real Estate Credit Partners Fund

Friday, 21 April 2017

Goldman Sachs has raised nearly $1 billion for its latest real estate debt-investment vehicle, Broad Street Real Estate Credit Partners III LP. The fund would be a follow-up to Credit Partners II, through which the investment bank's merchant banking arm three years ago had raised an estimated $1.8 billion.

CWCapital Seeks to Monetize Asset Management System

Thursday, 20 April 2017

CWCapital Asset Management, among the most active special servicers in the CMBS world, is proactively turning to its asset management system, which it has been perfecting over the years, to generate income as the volume of loans it handles is expected to shrink.

Office Space at Chicago's Sullivan Center for Sale

Wednesday, 19 April 2017

A venture of Madison Capital and KKR & Co. is offering for sale the 833,000 square feet of office space at the Sullivan Center mixed-use building in Chicago's Central Loop. JLL has the sales assignment. The offering comes on the heels of the venture selling the building's retail space to Acadia Realty Trust.

AVG Partners Buys Loan on UBS Center in Stamford, Conn., for $54.2Mln

Tuesday, 18 April 2017

AVG Partners, which owns the UBS Center in Stamford, Conn., has purchased the defaulted CMBS loan against the 682,327-square-foot property. The Beverly Hills, Calif., investor paid $54.2 million for the loan, which was securitized through LB-UBS Commercial Mortgage Trust, 2004-C1. That compares to the empty property's most recent appraised value of $44.4 million.

Torchlight Lent $159.2Mln Against Charlotte, N.C., Sarasota, Fla., Offices

Thursday, 13 April 2017

Torchlight Investors has provided $159.2 million of financing to facilitate Dilweg Cos.' $115.5 million purchase and stabilization of the First Citizens Bank Plaza in Charlotte, N.C., and Sarasota City Center in Sarasota, Fla. The two properties are collectively 49 percent occupied.

Baltimore's 200 St. Paul Plaza Offered for Sale

Wednesday, 12 April 2017

Kornblatt Co. is offering for sale 200 St. Paul Plaza, a 266,672-square-foot office property in downtown Baltimore. The property serves as collateral for $34.7 million of CMBS debt that is locked out from prepayment through October 2020.

Rialto's FDIC Portfolio Reaches Clean-Up Call

Tuesday, 11 April 2017

Rialto Capital Management, which seven years ago bought stakes in two massive portfolios of troubled commercial and residential loans from the FDIC, has started winding the portfolios down. What originally was $3.05 billion of assets has been whittled down $173 million.

$1.4Bln Raised Through Structured Tax-Deferred Vehicles in 2016; 1Q Sees $365.7Mln

Friday, 07 April 2017

A total of $1.4 billion of equity was raised on behalf of structured tax-deferred exchange vehicles last year, according to Mountain Dell Consulting. It provides further evidence that the structured exchange business, which had nearly become extinct between 2009 and 2012, continues to strengthen. Last year's volume was up nearly a third from the $1.1 billion that was raised in 2015.

Synthetic Securities Launched to Provide Hedge for Property Price Changes

Thursday, 06 April 2017

Global Index Group, which creates index-based synthetic financial products, has developed a pair of securities that would allow institutional investors to take a long or short position on changes in commercial property values. While they're not the first attempt to provide the industry with a synthetic way of getting access to the sector, they're unique in that they eliminate the counterparty risk all previous efforts faced.

Goldman Lends $85Mln Against Manhattan Office Building

Wednesday, 05 April 2017

Goldman Sachs has provided $85 million of financing against the 427,483-square-foot office building at 135 East 57th St. in midtown Manhattan, allowing for the property's CMBS loan to get retired. The CMBS loan was in a pinch as the building hadn't been generating the cash flow needed to fully service it because of a sharp increase in its ground lease payments nine years ago.

KKR Eyes Taking Mortgage REIT Public

Wednesday, 05 April 2017

Private-equity giant KKR & Co. is planning to take its KKR Real Estate Finance Trust Inc. operation public. The move comes just six months after the finance unit was separately capitalized. The REIT will originate floating-rate loans against properties in transition, make preferred equity investments and buy CMBS B-pieces through a fund.

1Q Sees Only 19 Lenders Contribute Loans to CMBS Deals

Tuesday, 04 April 2017

Only 19 lenders contributed loans to CMBS deals during the first quarter. That's down from the 28 that contributed loans to the market during the same period a year ago and is the smallest number of contributors in a quarter since 2012, when the market was just getting its legs back.

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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