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

Increasing Labor Costs Squeezing Multifamily Development Pipeline

Friday, 09 November 2018

A tightening labor market has forced developers of apartment properties across the country to push back or slow down the delivery of new supply. Construction companies are facing a shortage of skilled laborers, resulting in higher costs, which are contributing to a slow down in the construction of new units.

Colony Capital Aims to Sell Another $1Bln of Assets as Part of Re-Focusing Effort

Thursday, 08 November 2018

Colony Capital Inc., in the midst of a repositioning away from directly owning assets to a fee-centric business model, is planning to sell up to another $1 billion of assets through next year and use proceeds to originate third-party investment products. That would be on top of the $1.1 billion of non-strategic assets the Los Angeles investment manager has sold so far this year.

CBL Puts Honey Creek Mall in Indiana on Sales Market

Wednesday, 07 November 2018

CBL & Associates Properties Inc. has put its Honey Creek Mall in Terre Haute, Ind., up for sale in order to resolve the property's $24.4 million mortgage. The offering is being driven by the property's lender, which has hired NKF Capital Markets to solicit investors. The loan against the property is cross-collateralized with a mall CBL owns in Daytona Beach, Fla.

Torchlight Pays More Than $140Mln for 2 Large Apartments Near Grand Rapids, Mich.

Tuesday, 06 November 2018

Torchlight Investors is said to have paid more than $140 million, or $81,871/unit, for the Woodlake and Ramblewood Apartments, with a total of 1,710 units just outside of downtown Grand Rapids, Mich. The transaction, brokered by HFF, is believed to be among the largest property deals in Michigan.

Host Hotels Selling Westin in Manhattan for $300Mln, Reducing New York City Exposure

Monday, 05 November 2018

Host Hotels & Resorts Inc. has taken another step toward reducing its exposure to New York City, a market it says is oversupplied. It has agreed to sell the Westin New York Grand Central in Manhattan for $300 million. The company's New York hotels have underperformed the rest of its portfolio.

Pennsylvania REIT Seen Giving Up on Malls in Pa., Wis.

Friday, 02 November 2018

Pennsylvania REIT is giving up on its Wyoming Valley Mall in the Scranton/Wilkes-Barre area of northeastern Pennsylvania. Meanwhile, it's likely to follow suit with its Valley View Mall in LaCrosse, Wis. The actions will impact CMBS investors, as both malls back securitized loans.

Owner of Apartment Portfolio Sues to Nullify UCC Auction Brought by Mezz Lender

Thursday, 01 November 2018

Atlas Apartment Holdings, a Dallas investor that bought a portfolio of 11 apartment properties in Texas five years ago, is trying to get a New York State court to nullify a foreclosure auction conducted by Macquarie, which held a $71 million mezzanine loans against the portfolio. A New York court last month dismissed a counterclaim brought by Macquarie and KKR & Co., which had won the foreclosure auction.

Seller of Phoenix' Chase Tower Bought Loan via Fair-Value Purchase Option

Wednesday, 31 October 2018

Taconic Capital Advisors, which led the team that recently sold the 723,922-square-foot Chase Tower in Phoenix for $107.5 million, had purchased the distressed loan against the property in April for $62.15 million by exercising a fair-value option. At the time, the collateral property carried an $82.4 million appraisal.

CMBS Loan Against Mall of Acadiana in Lafayette, La., Put on Sales Block

Tuesday, 30 October 2018

The $119.5 million loan is one of 11 left in the collateral pool of Banc of America Commercial Mortgage Trust, 2007-2, which originally had a balance of $3.2 billion and so far has suffered nearly $310 million of losses. The Mall of Acadiana, owned by CBL & Associates Properties, was appraised in May at a value of $45.9 million.

Monday, 29 October 2018

Washington Prime Group is planning to turn over the deeds to its West Ridge Mall in Topeka, Kan., and Towne West Square shopping center in Wichita, Kan., both of which it says are over-leveraged. West Ridge Mall backs a $50.6 million loan, while Towne West Square backs a $46.7 million loan. The two loans are in CMBS transactions issued in 2014 and 2011, respectively.

Equity Commonwealth Looking to Sell 4 Properties as Part of Ongoing Disposition Program

Friday, 26 October 2018

Equity Commonwealth is marketing for sale four properties with 2.9 million square feet in Connecticut, Pennsylvania, Texas and Washington, continuing a disposition program that it began three years ago. It carries the buildings on its balance sheet at a combined value of nearly $475 million. So far this year, the company has sold $1 billion of real estate.

Brandywine Shrinking Northern Va. Exposure in Favor of Austin, Texas

Thursday, 25 October 2018

Brandywine Realty Trust is decreasing its footprint in suburban Washington, D.C., while increasing its focus on Austin, Texas. It has agreed to sell an 85 percent stake in eight office buildings with about 1.3 million square feet in Herndon, Va., for $312 million to Rockpoint Group.

CrowdStreet Steps into Investment Management Biz; Launches Fund

Wednesday, 24 October 2018

Crowdfunding platform CrowdStreet Inc. is looking to raise $25 million for a fund that would invest in properties for which capital is being raised on the site. The fund would provide its investors with instant diversity and could shorten the time it takes for sponsors to raise capital through the site.

Apartment-Rent Flattening in 3Q Seen as Blip

Tuesday, 23 October 2018

Average monthly apartment rents declined in September by $1 to $1,412/unit, marking the first month this year that rents hadn't increased, and rents during the third quarter were up only 0.3 percent, according to Yardi Matrix. But those data aren't indicative of a slowdown. On the contrary, higher home mortgage rates coupled with a slowdown in the construction of apartment units should translate to tighter markets across the country.

$80Mln Sharia Loan Against Houston Office Moves to Special Servicing

Monday, 22 October 2018

The $80 million CMBS loan against the Three Westlake Park office building in Houston has transferred to special servicer LNR Partners because it's expected to default. Its transfer comes three months after the $91 million loan against sister building Two Westlake transferred to Rialto Capital Advisors. That loan also was securitized.

Increasing Labor Costs Squeezing Multifamily Development Pipeline

Friday, 09 November 2018

A tightening labor market has forced developers of apartment properties across the country to push back or slow down the delivery of new supply. Construction companies are facing a shortage of skilled laborers, resulting in higher costs, which are contributing to a slow down in the construction of new units.

Colony Capital Aims to Sell Another $1Bln of Assets as Part of Re-Focusing Effort

Thursday, 08 November 2018

Colony Capital Inc., in the midst of a repositioning away from directly owning assets to a fee-centric business model, is planning to sell up to another $1 billion of assets through next year and use proceeds to originate third-party investment products. That would be on top of the $1.1 billion of non-strategic assets the Los Angeles investment manager has sold so far this year.

CBL Puts Honey Creek Mall in Indiana on Sales Market

Wednesday, 07 November 2018

CBL & Associates Properties Inc. has put its Honey Creek Mall in Terre Haute, Ind., up for sale in order to resolve the property's $24.4 million mortgage. The offering is being driven by the property's lender, which has hired NKF Capital Markets to solicit investors. The loan against the property is cross-collateralized with a mall CBL owns in Daytona Beach, Fla.

Torchlight Pays More Than $140Mln for 2 Large Apartments Near Grand Rapids, Mich.

Tuesday, 06 November 2018

Torchlight Investors is said to have paid more than $140 million, or $81,871/unit, for the Woodlake and Ramblewood Apartments, with a total of 1,710 units just outside of downtown Grand Rapids, Mich. The transaction, brokered by HFF, is believed to be among the largest property deals in Michigan.

Host Hotels Selling Westin in Manhattan for $300Mln, Reducing New York City Exposure

Monday, 05 November 2018

Host Hotels & Resorts Inc. has taken another step toward reducing its exposure to New York City, a market it says is oversupplied. It has agreed to sell the Westin New York Grand Central in Manhattan for $300 million. The company's New York hotels have underperformed the rest of its portfolio.

Pennsylvania REIT Seen Giving Up on Malls in Pa., Wis.

Friday, 02 November 2018

Pennsylvania REIT is giving up on its Wyoming Valley Mall in the Scranton/Wilkes-Barre area of northeastern Pennsylvania. Meanwhile, it's likely to follow suit with its Valley View Mall in LaCrosse, Wis. The actions will impact CMBS investors, as both malls back securitized loans.

Owner of Apartment Portfolio Sues to Nullify UCC Auction Brought by Mezz Lender

Thursday, 01 November 2018

Atlas Apartment Holdings, a Dallas investor that bought a portfolio of 11 apartment properties in Texas five years ago, is trying to get a New York State court to nullify a foreclosure auction conducted by Macquarie, which held a $71 million mezzanine loans against the portfolio. A New York court last month dismissed a counterclaim brought by Macquarie and KKR & Co., which had won the foreclosure auction.

Seller of Phoenix' Chase Tower Bought Loan via Fair-Value Purchase Option

Wednesday, 31 October 2018

Taconic Capital Advisors, which led the team that recently sold the 723,922-square-foot Chase Tower in Phoenix for $107.5 million, had purchased the distressed loan against the property in April for $62.15 million by exercising a fair-value option. At the time, the collateral property carried an $82.4 million appraisal.

CMBS Loan Against Mall of Acadiana in Lafayette, La., Put on Sales Block

Tuesday, 30 October 2018

The $119.5 million loan is one of 11 left in the collateral pool of Banc of America Commercial Mortgage Trust, 2007-2, which originally had a balance of $3.2 billion and so far has suffered nearly $310 million of losses. The Mall of Acadiana, owned by CBL & Associates Properties, was appraised in May at a value of $45.9 million.

Equity Commonwealth Looking to Sell 4 Properties as Part of Ongoing Disposition Program

Friday, 26 October 2018

Equity Commonwealth is marketing for sale four properties with 2.9 million square feet in Connecticut, Pennsylvania, Texas and Washington, continuing a disposition program that it began three years ago. It carries the buildings on its balance sheet at a combined value of nearly $475 million. So far this year, the company has sold $1 billion of real estate.

Brandywine Shrinking Northern Va. Exposure in Favor of Austin, Texas

Thursday, 25 October 2018

Brandywine Realty Trust is decreasing its footprint in suburban Washington, D.C., while increasing its focus on Austin, Texas. It has agreed to sell an 85 percent stake in eight office buildings with about 1.3 million square feet in Herndon, Va., for $312 million to Rockpoint Group.

CrowdStreet Steps into Investment Management Biz; Launches Fund

Wednesday, 24 October 2018

Crowdfunding platform CrowdStreet Inc. is looking to raise $25 million for a fund that would invest in properties for which capital is being raised on the site. The fund would provide its investors with instant diversity and could shorten the time it takes for sponsors to raise capital through the site.

Apartment-Rent Flattening in 3Q Seen as Blip

Tuesday, 23 October 2018

Average monthly apartment rents declined in September by $1 to $1,412/unit, marking the first month this year that rents hadn't increased, and rents during the third quarter were up only 0.3 percent, according to Yardi Matrix. But those data aren't indicative of a slowdown. On the contrary, higher home mortgage rates coupled with a slowdown in the construction of apartment units should translate to tighter markets across the country.

$80Mln Sharia Loan Against Houston Office Moves to Special Servicing

Monday, 22 October 2018

The $80 million CMBS loan against the Three Westlake Park office building in Houston has transferred to special servicer LNR Partners because it's expected to default. Its transfer comes three months after the $91 million loan against sister building Two Westlake transferred to Rialto Capital Advisors. That loan also was securitized.

New Office Leases in Manhattan on Track for Second-Highest Total in History

Friday, 19 October 2018

A total of 25.7 million square feet of new office leases were signed in Manhattan this year through September, putting the year on track to be the second-most active since Cushman & Wakefield started collecting such data in the 1980s. Leasing activity for the year will top 30.5 million sf, but will fall short of the record 32.8 million sf set in 2014.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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  • What Does Increased Construction Mean for Apartment REITs?
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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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