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

Cole Capital Launches Non-Traded REIT

Friday, 05 February 2016

Cole Capital has launched its latest non-traded REIT offering, Cole Office & Industrial REIT III Inc. The unit of VEREIT Inc. is aiming to raise $2.5 billion through the entity, its first such offering in years. Its latest offering will adopt a net-asset value pricing model roughly two years after its stock offering launches.

Blackstone Lends $285Mln Against Manhattan's Rivertower Apartments

Thursday, 04 February 2016

Blackstone Real Estate Debt Strategies has provided $285 million of mortgage financing against Rivertower, a 311-unit apartment property in Manhattan's Sutton Place neighborhood. The 38-story property is owned by a venture of Slate Property Group and GreenOak Real Estate, which recently bought it for $390 million, or $1.25 million/unit, resulting in a low-3 percent capitalization rate.

Boston Properties to Retire $211.25Mln CMBS Loan Against Va. Retail, Office Property

Thursday, 04 February 2016

Boston Properties Inc. plans to use a portion of the proceeds from the sale of $1 billion of unsecured notes to retire $211.25 million of financing that encumbers the Fountain Square office and retail property in the Washington, D.C., suburb of Reston, Va. The REIT plans to retire the debt in April, after it becomes open to prepayment.

Will the Music Stop?

Thursday, 04 February 2016

 

Commercial real estate prices are at record levels throughout the country. Interest-rate hikes are on the way, leaving many to worry that a drop in sales pricing is not that far behind.

 

Beacon Offers for Sale Arlington, Va., Office Property

Wednesday, 03 February 2016

Beacon Capital Partners is offering for sale Pentagon Center, a 911,817-square-foot office property in the Washington, D.C., suburb of Arlington, Va. The Boston investment manager has hired Cushman & Wakefield to market the 46-year-old property, which is one of 19 properties that remain in the collateral pool for a $1.1 billion CMBS loan.

Prudential Seen Partnering With SocGen on Conduit-Lending Venture

Tuesday, 02 February 2016

 

The buzz is that Prudential Mortgage Capital Co. will team up with Societe Generale on a CMBS conduit-lending venture similar to one it operates with Perella Weinberg Partners. That venture, formed in 2011, is set to be dissolved this summer, after having written some $2.8 billion of conduit loans.

 

Monday, 01 February 2016

New York company has hired Cushman & Wakefield to market for sale 55 Hope St., a 117-unit upscale apartment building with 6,200 square feet of retail space in the Williamsburg neighborhood of Brooklyn, N.Y. Units in the building are 97 percent leased, while the retail component is fully leased.

Middle-Market Lender Puts Portfolio of Performing Bridge Loans on Sales Block

Friday, 29 January 2016

Procida Funding & Advisors LLC has put a portfolio of $148 million of performing high-yield loans on the sales block, in what could be a first-of-its-kind offering. The Englewood Cliffs, N.J., bridge lender has hired NGKF Capital Markets' loan-sales advisory group to handle the offering, which involves 28 loans against properties within a 100-mile radius of its headquarters.

Friday, 29 January 2016

World Wide Group has paid $103 million, or $321,875/unit, for the SkyHouse Raleigh, a 320-unit apartment property in downtown Raleigh, N.C. The New York company bought the property, at 308 South Blount St., from a venture of Novare Group and Batson-Cook Development Co., which had offered it through JLL.

JCR Capital's Latest Investment Fund Gets Oversubscribed at $329.5Mln

Thursday, 28 January 2016

JCR Capital has raised $329.5 million of commitments for its latest investment vehicle, well exceeding its $250 million target. The Denver company's fund, JCR Capital Commercial Real Estate Finance Fund III LP, provides capital - including joint venture and preferred equity, as well as mezzanine and hard-money debt financing - against middle-market properties across the country.

Equity Residential to Pay $119Mln for Washington, D.C., Apartments

Wednesday, 27 January 2016

The Chicago apartment REIT has struck a deal to pay $119 million, or about $626,316/unit, for the 190-unit Ellington apartments in the U Street corridor of Washington, D.C. TIAA-CREF is selling the property, which is 94 percent leased. Eastdil Secured has the listing.

Piedmont Places 4 Los Angeles-Area Office Properties on Sales Market

Tuesday, 26 January 2016

Piedmont Office Realty Trust Inc. has placed its four Los Angeles-area office properties with about 1 million square feet on the sales market. The trophy of the bunch is 800 North Brand Blvd., with 527,338 sf in Glendale, Calif. It could sell for $240 million. JLL has been hired to market it for sale.

Monday, 25 January 2016

Grosvenor Americas has paid $146 million, or about $225,309/unit, for the Crossings at Washingtonian Center, a 648-unit apartment property in Gaithersburg, Md. It has lined up $95.1 million of Fannie Mae financing to fund its purchase from Quadrangle Development.

Friday, 22 January 2016

Post Brothers is teeing up for sale two apartment properties with 771 units in Philadelphia. The properties are the 626-unit Rittenhouse Hill at 633 West Rittenhouse St. in the city's Germantown area, and the Goldtex Building, with 145 units about eight miles away in the city's Callowhill section, which is about a half mile from City Hall.

Blackstone Raises $1.3Bln for Latest Mezz-Lending Vehicle

Friday, 22 January 2016

Blackstone Group has raised $1.3 billion for its latest mezzanine-debt investment fund. The fund, Blackstone Real Estate Debt Strategies III LP, would be a follow-up to a similarly named vehicle that in 2014 completed raising $3.5 billion of equity capital.

Cole Capital Launches Non-Traded REIT

Friday, 05 February 2016

Cole Capital has launched its latest non-traded REIT offering, Cole Office & Industrial REIT III Inc. The unit of VEREIT Inc. is aiming to raise $2.5 billion through the entity, its first such offering in years. Its latest offering will adopt a net-asset value pricing model roughly two years after its stock offering launches.

Blackstone Lends $285Mln Against Manhattan's Rivertower Apartments

Thursday, 04 February 2016

Blackstone Real Estate Debt Strategies has provided $285 million of mortgage financing against Rivertower, a 311-unit apartment property in Manhattan's Sutton Place neighborhood. The 38-story property is owned by a venture of Slate Property Group and GreenOak Real Estate, which recently bought it for $390 million, or $1.25 million/unit, resulting in a low-3 percent capitalization rate.

Boston Properties to Retire $211.25Mln CMBS Loan Against Va. Retail, Office Property

Thursday, 04 February 2016

Boston Properties Inc. plans to use a portion of the proceeds from the sale of $1 billion of unsecured notes to retire $211.25 million of financing that encumbers the Fountain Square office and retail property in the Washington, D.C., suburb of Reston, Va. The REIT plans to retire the debt in April, after it becomes open to prepayment.

Will the Music Stop?

Thursday, 04 February 2016

 

Commercial real estate prices are at record levels throughout the country. Interest-rate hikes are on the way, leaving many to worry that a drop in sales pricing is not that far behind.

 

Beacon Offers for Sale Arlington, Va., Office Property

Wednesday, 03 February 2016

Beacon Capital Partners is offering for sale Pentagon Center, a 911,817-square-foot office property in the Washington, D.C., suburb of Arlington, Va. The Boston investment manager has hired Cushman & Wakefield to market the 46-year-old property, which is one of 19 properties that remain in the collateral pool for a $1.1 billion CMBS loan.

Prudential Seen Partnering With SocGen on Conduit-Lending Venture

Tuesday, 02 February 2016

 

The buzz is that Prudential Mortgage Capital Co. will team up with Societe Generale on a CMBS conduit-lending venture similar to one it operates with Perella Weinberg Partners. That venture, formed in 2011, is set to be dissolved this summer, after having written some $2.8 billion of conduit loans.

 

Middle-Market Lender Puts Portfolio of Performing Bridge Loans on Sales Block

Friday, 29 January 2016

Procida Funding & Advisors LLC has put a portfolio of $148 million of performing high-yield loans on the sales block, in what could be a first-of-its-kind offering. The Englewood Cliffs, N.J., bridge lender has hired NGKF Capital Markets' loan-sales advisory group to handle the offering, which involves 28 loans against properties within a 100-mile radius of its headquarters.

JCR Capital's Latest Investment Fund Gets Oversubscribed at $329.5Mln

Thursday, 28 January 2016

JCR Capital has raised $329.5 million of commitments for its latest investment vehicle, well exceeding its $250 million target. The Denver company's fund, JCR Capital Commercial Real Estate Finance Fund III LP, provides capital - including joint venture and preferred equity, as well as mezzanine and hard-money debt financing - against middle-market properties across the country.

Equity Residential to Pay $119Mln for Washington, D.C., Apartments

Wednesday, 27 January 2016

The Chicago apartment REIT has struck a deal to pay $119 million, or about $626,316/unit, for the 190-unit Ellington apartments in the U Street corridor of Washington, D.C. TIAA-CREF is selling the property, which is 94 percent leased. Eastdil Secured has the listing.

Piedmont Places 4 Los Angeles-Area Office Properties on Sales Market

Tuesday, 26 January 2016

Piedmont Office Realty Trust Inc. has placed its four Los Angeles-area office properties with about 1 million square feet on the sales market. The trophy of the bunch is 800 North Brand Blvd., with 527,338 sf in Glendale, Calif. It could sell for $240 million. JLL has been hired to market it for sale.

Blackstone Raises $1.3Bln for Latest Mezz-Lending Vehicle

Friday, 22 January 2016

Blackstone Group has raised $1.3 billion for its latest mezzanine-debt investment fund. The fund, Blackstone Real Estate Debt Strategies III LP, would be a follow-up to a similarly named vehicle that in 2014 completed raising $3.5 billion of equity capital.

Matured CMBS Loan Gets Repaid; Collateral's TIC Ownership to Get Recast

Thursday, 21 January 2016

The $55.5 million CMBS loan against Britannia Business Center I, a 296,537-square-foot office property in Pleasanton, Calif., has been retired as part of an effort by Vitua Partners to recapitalize the four-building complex. The Phoenix investment manager is raising capital, some through a crowdfunding platform, that would facilitate its restructuring of the property's tenant-in-common ownership group.

JPMorgan Lends $229Mln Against San Antonio Retail Property

Wednesday, 20 January 2016

JPMorgan Chase Bank has provided $229 million of financing against the Shops at Rivercenter, a 1.1 million-square-foot retail property in San Antonio. The loan was used to retire a $54.2 million construction loan that was used to fund the property's recent redevelopment and an $85.5 million loan CMBS loan that wasn't coming due until March.

Wall of CMBS Loan Maturities Shrinks, Remains Daunting

Tuesday, 19 January 2016

A total of $205.2 billion of conduit loans will come due by 2018. Increases in interest rates will naturally put some loans at risk.

Principal Buys Stake in Maryland Student-Housing Property in $142Mln Deal

Friday, 15 January 2016

Principal Real Estate Investors has acquired a stake in Landmark College Park, an 829-bed student-housing property that serves the University of Maryland in College Park, Md., in a deal that values the property at $142 million, or about $171,291/bed. The property was purchased through a venture Principal operates with CA Student Living.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

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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
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