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

Terrorism Insurance Backstop Extension May be Shorter than Expected

Friday, 31 October 2014

Congressional differences on how to reauthorize the federal government's terrorism insurance backstop program is fueling speculation that any extension that's granted could be shorter than the seven years the private sector had been expecting. The law authorizing the program comes to an end at the end of the year.

New York Life, Northwestern Lend $500Mln Against Boston's International Place

Thursday, 30 October 2014

New York Life Insurance Co. and Northwestern Mutual Life Insurance Co. have provided $500 million of financing against One and Two International Place, a 1.9 million-square-foot office property in Boston. The fixed-rate loan, which the two insurers equally funded, was arranged by HFF.

Wednesday, 29 October 2014

General Growth Properties Inc. is offering for sale the Greenwood Mall in Bowling Green, Ky. The REIT had offered it two years ago, but ended up refinancing it. It's tapped CBRE to handle the sale. The property could sell for about $120 million, or roughly $207/sf, resulting in a capitalization rate of about 8 percent, based on last year's net operating income.

Former Blackstone Lending Exec, Peter Sotoloff, Joins Forces with Mack Real Estate

Wednesday, 29 October 2014

Peter Sotoloff, the former head of U.S. originations at Blackstone Group, has joined Mack Real Estate Group as chief investment officer of its newly launched originations unit. The unit, Mack Real Estate Credit Strategies, will focus its investments on mezzanine and senior loans and preferred equity on properties in transition and in need of flexible capital. The buzz is it's looking to raise $750 million for a fund that would capitalize its investments.

London Investment Manager Aims for $700Mln of U.S. Deals in Next 2 Years

Tuesday, 28 October 2014

London investment manager 90 North Real Estate Partners has its eyes on an expansion in North America. The three-year-old company, whose name refers to 90 degrees north latitude, the northern-most point on the globe, has hired Daniel T. Cooper, a 25-year real estate veteran, to lead its efforts. It's aiming to make up to $700 million of investments in the coming two years, primarily in net-leased office and industrial properties, as well as student housing.

Pebblebrook Buying Boston's Revere Hotel for $261Mln

Tuesday, 28 October 2014

Pebblebrook Hotel Trust has struck a deal to pay $261 million for the 358-room Revere Hotel in Boston's Theater District. The REIT is buying the hotel, a former Radisson, along with an adjacent lot from Northwood Investors, which had purchased it in 2010 and invested $27 million in a massive renovation and repositioning.

Monday, 27 October 2014

A venture led by Worthe Real Estate Group is in the market to sell two Burbank, Calif., office properties with 95,852 square feet. The Santa Monica, Calif., developer has tapped Madison Partners to market the properties, 3300 Riverside Drive, with 55,500 sf, and 4444 West Lakeside Drive, with 37,802 sf.

Allianz Lends $125Mln Against Station Place II in Washington, D.C.

Friday, 24 October 2014

Allianz Real Estate of America has provided a $125 million loan against Station Place II, a 362,069-square-foot office building at 600 2nd St. NE in Washington, D.C. The loan was used to defease a $94.5 million CMBS loan that was securitized in 2006 and had carried a 6.9 percent coupon.

Torchlight Seeks $1Bln for Debt Fund

Friday, 24 October 2014

Torchlight Investors, an investment manager that operates a CMBS special servicing unit, is looking to raise $1 billion of equity commitments for a fund that would invest in commercial real estate acquire debt and CMBS. Its last fund raised $956 million of commitments last year and is still in its investing stage.

Deutsche Lends $98.2Mln Against Boston's 399 Boylston

Thursday, 23 October 2014

Deutsche Bank has provided $98.2 million of financing against 399 Boylston St., a 229,400-square-foot office building in Boston's Back Bay that was purchased last month by the Blackstone Group for $117 million, or roughly $510/sf. The building will face a substantial vacancy in 2017, but that could spell an opportunity for the investment manager.

Thursday, 23 October 2014

Federal regulators this week approved final rules regarding the retention of risk in asset-backed securities, including CMBS. The rules do not differ much from the proposed regulations that the SEC and other agencies had proposed a year ago and are expected to increase the costs to borrow via the CMBS market.

Atlanta Apartment Portfolio Offered for Sale

Wednesday, 22 October 2014

Worthing Cos. is offering for sale a portfolio of three adjacent apartment properties with 691 units in the central perimeter submarket of Atlanta. CBRE is marketing the portfolio, which could sell for around $150 million, or $217,077/unit, which would result in a capitalization rate of about 5 percent.

L.A.-Area Office Building Facing Loss of Only Tenant Fetches $159Mln

Tuesday, 21 October 2014

LBA Realty has agreed to pay Transpacific Development Corp. $159 million, or about $469/sf, for Sony Pictures Plaza, a 338,695-square-foot office building in Culver City, Calif., that's expected to lose its sole tenant, Sony Pictures Entertainment, in three years.

Apartment Complex in The Bronx, N.Y., Hits Sales Market

Tuesday, 21 October 2014

Clinton Towers, a three-building apartment property in the East Tremont section of the Bronx, N.Y., has been put up for sale through Marcus & Millichap. The property, which is no longer part of the Mitchell-Lama program, could sell for nearly $70 million, translating to a capitalization rate of 4 percent.

Monday, 20 October 2014

The owner of a mixed-use property in Gahanna, Ohio, has sued special servicer LNR Partners, alleging it obstructed its access to a reserve fund. As a result of what the property's owner said was LNR's refusal to give it access to the funds, it defaulted on the loan, which was securitized only six months ago.

Terrorism Insurance Backstop Extension May be Shorter than Expected

Friday, 31 October 2014

Congressional differences on how to reauthorize the federal government's terrorism insurance backstop program is fueling speculation that any extension that's granted could be shorter than the seven years the private sector had been expecting. The law authorizing the program comes to an end at the end of the year.

New York Life, Northwestern Lend $500Mln Against Boston's International Place

Thursday, 30 October 2014

New York Life Insurance Co. and Northwestern Mutual Life Insurance Co. have provided $500 million of financing against One and Two International Place, a 1.9 million-square-foot office property in Boston. The fixed-rate loan, which the two insurers equally funded, was arranged by HFF.

Former Blackstone Lending Exec, Peter Sotoloff, Joins Forces with Mack Real Estate

Wednesday, 29 October 2014

Peter Sotoloff, the former head of U.S. originations at Blackstone Group, has joined Mack Real Estate Group as chief investment officer of its newly launched originations unit. The unit, Mack Real Estate Credit Strategies, will focus its investments on mezzanine and senior loans and preferred equity on properties in transition and in need of flexible capital. The buzz is it's looking to raise $750 million for a fund that would capitalize its investments.

London Investment Manager Aims for $700Mln of U.S. Deals in Next 2 Years

Tuesday, 28 October 2014

London investment manager 90 North Real Estate Partners has its eyes on an expansion in North America. The three-year-old company, whose name refers to 90 degrees north latitude, the northern-most point on the globe, has hired Daniel T. Cooper, a 25-year real estate veteran, to lead its efforts. It's aiming to make up to $700 million of investments in the coming two years, primarily in net-leased office and industrial properties, as well as student housing.

Pebblebrook Buying Boston's Revere Hotel for $261Mln

Tuesday, 28 October 2014

Pebblebrook Hotel Trust has struck a deal to pay $261 million for the 358-room Revere Hotel in Boston's Theater District. The REIT is buying the hotel, a former Radisson, along with an adjacent lot from Northwood Investors, which had purchased it in 2010 and invested $27 million in a massive renovation and repositioning.

Allianz Lends $125Mln Against Station Place II in Washington, D.C.

Friday, 24 October 2014

Allianz Real Estate of America has provided a $125 million loan against Station Place II, a 362,069-square-foot office building at 600 2nd St. NE in Washington, D.C. The loan was used to defease a $94.5 million CMBS loan that was securitized in 2006 and had carried a 6.9 percent coupon.

Torchlight Seeks $1Bln for Debt Fund

Friday, 24 October 2014

Torchlight Investors, an investment manager that operates a CMBS special servicing unit, is looking to raise $1 billion of equity commitments for a fund that would invest in commercial real estate acquire debt and CMBS. Its last fund raised $956 million of commitments last year and is still in its investing stage.

Deutsche Lends $98.2Mln Against Boston's 399 Boylston

Thursday, 23 October 2014

Deutsche Bank has provided $98.2 million of financing against 399 Boylston St., a 229,400-square-foot office building in Boston's Back Bay that was purchased last month by the Blackstone Group for $117 million, or roughly $510/sf. The building will face a substantial vacancy in 2017, but that could spell an opportunity for the investment manager.

Atlanta Apartment Portfolio Offered for Sale

Wednesday, 22 October 2014

Worthing Cos. is offering for sale a portfolio of three adjacent apartment properties with 691 units in the central perimeter submarket of Atlanta. CBRE is marketing the portfolio, which could sell for around $150 million, or $217,077/unit, which would result in a capitalization rate of about 5 percent.

L.A.-Area Office Building Facing Loss of Only Tenant Fetches $159Mln

Tuesday, 21 October 2014

LBA Realty has agreed to pay Transpacific Development Corp. $159 million, or about $469/sf, for Sony Pictures Plaza, a 338,695-square-foot office building in Culver City, Calif., that's expected to lose its sole tenant, Sony Pictures Entertainment, in three years.

Apartment Complex in The Bronx, N.Y., Hits Sales Market

Tuesday, 21 October 2014

Clinton Towers, a three-building apartment property in the East Tremont section of the Bronx, N.Y., has been put up for sale through Marcus & Millichap. The property, which is no longer part of the Mitchell-Lama program, could sell for nearly $70 million, translating to a capitalization rate of 4 percent.

Baltimore-Area Apartment Property Offered for Sale

Friday, 17 October 2014

A venture of Federal Capital Partners and Angelo, Gordon & Co. is offering for sale the Fairways at Towson, an 828-unit apartment property in the Baltimore suburb of Towson, Md. The property, at 6906 Donachie Road, could sell for about $103.5 million, or $125,000/unit. It's being offered through CBRE.

Wall of Maturities Shrinks by 10 Percent in 9 Months; Volume Remains Formidable

Thursday, 16 October 2014

A total of 22,514 CMBS conduit loans with a balance of $278.1 billion come due in the next three years. While a seemingly massive wall of maturities, the volume has shrunk by nearly 10 percent over the past nine months. But there's a bit of natural selection going on and many of the loans that remain could face challenges getting taken out.

Santa Monica, Calif., Property Under Agreement to Sell for $113Mln

Wednesday, 15 October 2014

Hines has agreed to sell a 206,000-square-foot industrial property that it had planned to redevelop into a mixed-use complex in Santa Monica, Calif., for $113 million, or $550/sf. The property's being purchased by a venture of Lincoln Property Co. and Clarion Partners, which will likely redevelop it into creative office use.

Dallas Investment Manager Seeks $300Mln for Fourth Fund

Wednesday, 15 October 2014

Thackeray Partners is seeking $300 million of commitments for its fourth investment fund. The Dallas investment manager has so far raised $204 million of its target. The fund would be a follow-up to a vehicle that raised $225 million - more than the $200 million targeted - in 2012.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners
Private-Label CMBS - 9Mos2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 26.0 19,675.34 29.5
JPMorgan 12.1 8,678.41 13.0
Wells Fargo 15.1 8,504.57 12.8
Goldman Sachs 7.0 5,740.15 8.6
Citigroup 9.3 5,337.91 8.0

 

 

MOODY'S/RCA CPPI

 

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Top Loan Contributors
Private-Label CMBS 9Mos2014
Lender Vol $mln MktShr%
Deutsche Bank 11,647.54 17.75
JPMorgan 7,496.78 11.42
Wells Fargo 4,540.31 6.92
CCRE 4,474.33 6.82
Morgan Stanley 4,312.62 6.57

 

 

 

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