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

Monday, 15 July 2019

Halstatt Real Estate Partners, an affiliate of a Naples, Fla., family office, is close to reaching its target of $150 million of equity commitments for its third fund, which is investing in properties and developments throughout Florida. With debt and co-investment capital, the fund plans to acquire $500 million to $600 million of assets.

Citi Lends $198.3Mln for RFR's Purchase of Manhattan's 477 Madison Ave.

Friday, 12 July 2019

Citigroup has provided $198.3 million of financing to RFR Holdings, which recently paid $258.25 million for 477 Madison Ave. in midtown Manhattan. The New York company plans to renovate the 325,000-square-foot office property's façade, as well as install new windows and mechanical systems.

Morgan Properties Puts Elizabeth, N.J., Apartments on Sales Block

Thursday, 11 July 2019

Westminster Towers, a two-building apartment property with 203 units in Elizabeth, N.J., is being offered for sale. The 57-year-old property, at 801 North Broad St. and 1341 North Ave., is near a commuter rail station, providing easy access to Manhattan. It's being pitched as a potential value-add play, as only about 15 percent of its units have undergone upgrades. Those units saw monthly rental increases of as much as $250.

Northern N.J. Value-Add Office Play Brought to Market

Wednesday, 10 July 2019

Brookwood Financial Partners has brought to the sales market Morris Corporate Center 1 and 2, a pair of office buildings with 543,766 square feet in the northern New Jersey municipality of Parsippany. The property should benefit from a recent surge in tenant and investor activity in the area, helped by Teva Pharmaceutical's move last year.

CWCapital Moves to Sell Loan Against Gateway One in St. Louis

Tuesday, 09 July 2019

CWCapital Asset Management has placed the $43.8 million CMBS loan against the 409,920-square-foot Gateway One office building in St. Louis on the sales block. The loan is the largest of nine remaining in the collateral pool for Merrill Lynch Mortgage Trust, 2006-C1, and represents 44 percent of the deal's $99.5 million remaining balance. The building earlier this year was appraised at a value of $26 million.

KKR Venture Paying $325Mln for 6 Apartment Properties in Fla., North Carolina, Texas

Tuesday, 09 July 2019

The venture, which includes Carter-Haston Real Estate Services, is paying $325 million for the 1,823-unit apartment portfolio. Bluerock Residential Growth REIT Inc. is selling the portfolio. Two of the properties serve as collateral for $69 million of Freddie Mac securitized debt.

Monday, 08 July 2019

Freddie Mac found that 82 percent of apartment renters it surveyed recently thought renting was more affordable than owning. That's up 15 percentage points from the housing-finance agency's last survey, conducted in February 2018, and is the highest percentage ever recorded by the survey.

Starwood Property Lends $105Mln to Fund Acquisition, Renovation of Houston Hotel

Friday, 05 July 2019

Starwood Property Trust has provided a total of $105 million of financing against the 955-room Hyatt Regency Houston hotel near the city's George R. Brown Convention Center. A total of $80 million of the loan was used to help fund the 47-year-old property's purchase by a venture of Apollo Real Estate and Haberhill LLC, in a deal brokered by JLL.

Citigroup Dominates Ranking of Loan Contributors with $4.9Bln Volume

Wednesday, 03 July 2019

Citigroup so far is dominating a ranking of loan contributors to domestic, private-label CMBS transactions. The banking giant sold $4.9 billion of loans through securitizations during the first six months of the year, amounting to 12.6 percent of all loans contributed to the market.

NexPoint Selling Apartment Portfolio for $289.9Mln, Buying 2 Properties for $100Mln

Tuesday, 02 July 2019

The Dallas REIT has agreed to sell six apartment properties with 2,218 units in five Sunbelt states for $289.9 million, or $130,703/unit. Meanwhile, it is buying two properties with 702 units in Florida and Tennessee for $100 million, or $142,450/unit. It's also negotiating to buy three additional properties, but those deals are not under contract.

Monday, 01 July 2019

M&T Bank has provided $80 million of financing against the 187,060-square-foot Albano office building at 305 East 46th St. in midtown Manhattan, which recently was placed on the sales block by its owner Vanbarton Group. The loan was used to take out a $61 million loan that the bank had provided last May.

Washington REIT Selling 8 Shopping Centers, Slashing Exposure to Retail

Friday, 28 June 2019

Washington REIT has agreed to sell eight of its 16 shopping centers as the company continues to significantly reduce its exposure to the retail and office sectors and primarily focus on its multifamily holdings.

CMBS Issuance Again Balloons in June, But Still 5.4 Percent Below Last Year's Pace

Thursday, 27 June 2019

Private-label CMBS issuance during the first half totaled $38.5 billion, with nearly 21 percent of that, or $7.9 billion, pricing in June alone. Despite the heavy month, volume remained 4.6 percent shy of last year's pace.

Dropping Interest Rates Bode Well for CMBS Conduit Lenders

Wednesday, 26 June 2019

The four conduit deals with either horizontal or vertical risk-retention schemes that have closed so far during the second quarter generated a hefty 5.64 percent profit margin to their loan contributors. For the year so far, profitability has been an impressive 4.9 percent. Thank falling Treasury yields for the trend.

 

Mill Creek Residential Offers Recently Completed N.J. Apartments for Sale

Tuesday, 25 June 2019

Modera Parsippany, a recently completed apartment property in the New York suburb of Parsippany, N.J., has been put on the sales block by its developer, Mill Creek Residential. The Dallas developer has hired HFF's New Jersey office to market the 212-unit property, which should benefit from recent area rental increases.

Citi Lends $198.3Mln for RFR's Purchase of Manhattan's 477 Madison Ave.

Friday, 12 July 2019

Citigroup has provided $198.3 million of financing to RFR Holdings, which recently paid $258.25 million for 477 Madison Ave. in midtown Manhattan. The New York company plans to renovate the 325,000-square-foot office property's façade, as well as install new windows and mechanical systems.

Morgan Properties Puts Elizabeth, N.J., Apartments on Sales Block

Thursday, 11 July 2019

Westminster Towers, a two-building apartment property with 203 units in Elizabeth, N.J., is being offered for sale. The 57-year-old property, at 801 North Broad St. and 1341 North Ave., is near a commuter rail station, providing easy access to Manhattan. It's being pitched as a potential value-add play, as only about 15 percent of its units have undergone upgrades. Those units saw monthly rental increases of as much as $250.

Northern N.J. Value-Add Office Play Brought to Market

Wednesday, 10 July 2019

Brookwood Financial Partners has brought to the sales market Morris Corporate Center 1 and 2, a pair of office buildings with 543,766 square feet in the northern New Jersey municipality of Parsippany. The property should benefit from a recent surge in tenant and investor activity in the area, helped by Teva Pharmaceutical's move last year.

CWCapital Moves to Sell Loan Against Gateway One in St. Louis

Tuesday, 09 July 2019

CWCapital Asset Management has placed the $43.8 million CMBS loan against the 409,920-square-foot Gateway One office building in St. Louis on the sales block. The loan is the largest of nine remaining in the collateral pool for Merrill Lynch Mortgage Trust, 2006-C1, and represents 44 percent of the deal's $99.5 million remaining balance. The building earlier this year was appraised at a value of $26 million.

KKR Venture Paying $325Mln for 6 Apartment Properties in Fla., North Carolina, Texas

Tuesday, 09 July 2019

The venture, which includes Carter-Haston Real Estate Services, is paying $325 million for the 1,823-unit apartment portfolio. Bluerock Residential Growth REIT Inc. is selling the portfolio. Two of the properties serve as collateral for $69 million of Freddie Mac securitized debt.

Starwood Property Lends $105Mln to Fund Acquisition, Renovation of Houston Hotel

Friday, 05 July 2019

Starwood Property Trust has provided a total of $105 million of financing against the 955-room Hyatt Regency Houston hotel near the city's George R. Brown Convention Center. A total of $80 million of the loan was used to help fund the 47-year-old property's purchase by a venture of Apollo Real Estate and Haberhill LLC, in a deal brokered by JLL.

Citigroup Dominates Ranking of Loan Contributors with $4.9Bln Volume

Wednesday, 03 July 2019

Citigroup so far is dominating a ranking of loan contributors to domestic, private-label CMBS transactions. The banking giant sold $4.9 billion of loans through securitizations during the first six months of the year, amounting to 12.6 percent of all loans contributed to the market.

NexPoint Selling Apartment Portfolio for $289.9Mln, Buying 2 Properties for $100Mln

Tuesday, 02 July 2019

The Dallas REIT has agreed to sell six apartment properties with 2,218 units in five Sunbelt states for $289.9 million, or $130,703/unit. Meanwhile, it is buying two properties with 702 units in Florida and Tennessee for $100 million, or $142,450/unit. It's also negotiating to buy three additional properties, but those deals are not under contract.

Washington REIT Selling 8 Shopping Centers, Slashing Exposure to Retail

Friday, 28 June 2019

Washington REIT has agreed to sell eight of its 16 shopping centers as the company continues to significantly reduce its exposure to the retail and office sectors and primarily focus on its multifamily holdings.

CMBS Issuance Again Balloons in June, But Still 5.4 Percent Below Last Year's Pace

Thursday, 27 June 2019

Private-label CMBS issuance during the first half totaled $38.5 billion, with nearly 21 percent of that, or $7.9 billion, pricing in June alone. Despite the heavy month, volume remained 4.6 percent shy of last year's pace.

Dropping Interest Rates Bode Well for CMBS Conduit Lenders

Wednesday, 26 June 2019

The four conduit deals with either horizontal or vertical risk-retention schemes that have closed so far during the second quarter generated a hefty 5.64 percent profit margin to their loan contributors. For the year so far, profitability has been an impressive 4.9 percent. Thank falling Treasury yields for the trend.

 

Mill Creek Residential Offers Recently Completed N.J. Apartments for Sale

Tuesday, 25 June 2019

Modera Parsippany, a recently completed apartment property in the New York suburb of Parsippany, N.J., has been put on the sales block by its developer, Mill Creek Residential. The Dallas developer has hired HFF's New Jersey office to market the 212-unit property, which should benefit from recent area rental increases.

Developer Buccini/Pollin Creates Investment Manager; Eyes $250Mln Fund

Saturday, 22 June 2019

The Buccini/Pollin Group, a national investor and developer, has formed an investment management arm to centralize the company's value-add investment activities in existing assets. The unit, Corten Real Estate Partners, which is led by P.J. Yeatman, is aiming to raise a $250 million fund that it would use to invest in middle-market office, multifamily and hotel properties throughout the Mid-Atlantic region.

Deutsche, Goldman, Wells Lend $1.43Bln Against 30 Hudson Yards

Thursday, 20 June 2019

Lenders led by Deutsche Bank have provided $1.43 billion of fixed-rate financing against some 1.5 million square feet of office space on 26 floors of the 55-story 30 Hudson Yards in Manhattan.

Former Heads of Laurus Corp. Launch Investment Management Operation

Wednesday, 19 June 2019

Andres and Jean Paul Szita, who relinquished control of real estate investment firm Laurus Corp. last year, have formed a new company, WealthStone LLC, that will pursue office, retail and apartment investments throughout the United States. They're looking to raise $300 million that would be invested in core and core-plus properties in major markets throughout the country.

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

  • 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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