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

Capital-Raising for Calmwater Fund Reaches Halfway Point

Friday, 09 December 2016

Calmwater Capital has raised roughly half of a debt-investment fund, which has a target of $750 million. The vehicle, Calmwater Real Estate Credit Fund 3, would be used to originate bridge loans of $5 million to $50 million against a variety of property types across the country.

Risk-Retention Loan Premium Not as Big as Feared

Thursday, 08 December 2016

For nearly a year, industry watchers have predicted that pending risk-retention rules, which will impact a substantial segment of the commercial mortgage business, would result in an increase in borrowing costs. Expectations of that premium generally ranged from 20 to 50 basis points. But things haven't been as bleak.

CWCapital Offers Delinquent CMBS Loan Against UBS Center in Stamford, Conn.

Wednesday, 07 December 2016

CWCapital Asset Management, which is managing the $148.7 million CMBS loan against the 682,327-square-foot UBS Center in Stamford, Conn., has put the nonperforming loan up for sale. It has hired Mission Capital Advisors to sell the loan and is shooting to complete a transaction by Feb. 24.

Mack-Cali Tees Up for Sale Northern N.J. Office Portfolio

Wednesday, 07 December 2016

Mack-Cali Realty Corp. is offering for sale a portfolio of nine office buildings with 2.2 million square feet in Bergen County, N.J. The Jersey City, N.J., REIT has hired HFF to market the portfolio, which could fetch $240 million.

Hines, GE in Talks to Sell Atlanta Financial Center to Sumitomo

Tuesday, 06 December 2016

A venture of Hines and General Motors Asset Management is said to be in talks to sell the 914,747-square-foot Atlanta Financial Center to Sumitomo Corp. of America for $219.5 million, or $240/sf. The sales price is believed to translate to a capitalization rate in the low 5-percent range.

JCR Capital Seeks to Broaden Bridge-Loan Offering

Tuesday, 06 December 2016

JCR Capital, which provides debt and equity capital for middle-market properties across the country, is looking to broaden its menu of offerings. The Denver investment manager is looking to develop a separate account relationship in order to start writing larger bridge loans, of up to $40 million. Its loans typically average $7 million each.

Monday, 05 December 2016

PECO Real Estate Partners, which was formed last year, is raising its initial investment vehicle. It's raising $60 million for a fund that would pursue net-leased properties. It also is continuing raising capital for PECO Strategic Investment Fund III, which was launched by Phillips Edison & Co.

 

Friday, 02 December 2016

Mesa West Core Lending Fund has provided $192 million of financing against the Congress Square office and retail property in downtown Boston that's in the process of being redeveloped into a mixed-use complex. The property is the former headquarters of Fidelity Investments.

Inland Teams with Sound Point on Debt Venture

Thursday, 01 December 2016

Inland Real Estate Investment Corp., an old-line sponsor of non-traded REITs, has launched an effort to pursue opportunities in the debt market in a venture with Sound Point Capital. The venture reunites Don MacKinnon, portfolio manager of real estate for Sound Point, with Mitchell Sabshon, president and chief executive of Inland.

CMBS Issuance Expected to End Year at $67.2Bln; 2017 Issuance Could Be Lower

Thursday, 01 December 2016

The year is likely to end with $67.2 billion of CMBS having been issued, based on deals that currently are being prepared for market. That would be 29.3 percent behind last year's $95.1 billion of issuance and would mark the first time since 2009 that annual issuance had declined from the year before. Expectations for next year are for issuance to possibly decline slightly or remain flat.

Crowdfunding Platform Raises Capital to Originate Bridge Loans

Wednesday, 30 November 2016

Crowdfunding platform RealtyShares is looking to carve out a bigger slice of the commercial real estate lending business. It's lined up institutional capital that it will use to write bridge loans of up to $10 million each against office, retail, industrial and apartment properties as part of an effort to provide property owners a one-stop shop for capital.

Carlyle, King Pay $167Mln for Lexington, Mass., Office/Lab Property

Tuesday, 29 November 2016

A venture of the Carlyle Group and King Street Properties has paid $167 million, or about $416/sf, for a 401,080-square-foot office and laboratory complex on Hayden Avenue in the Boston suburb of Lexington, Mass.

Tuesday, 29 November 2016

The MAve Hotel in Manhattan isn't operating as a conventional hotel anymore, which could put its CMBS loan, securitized just three years ago, at risk of default. The loan, with an original balance of $22 million, is securitized through COMM, 2013-CCRE12. It hasn't defaulted yet and maintains a still healthy balance in a number of reserve accounts.

Rialto Raises $1.3Bln for Latest Series of Investment Funds

Monday, 28 November 2016

Rialto Capital Management has raised $1.3 billion for its latest series of investment vehicles, equaling the amount it had raised for a predecessor fund and putting it well on its way to reaching its $1.75 billion target. The $1.1 billion it's raised for the fund's debt component is more than the $1 billion it had targeted.

RBC Lends $250Mln Against Denver Office Property

Wednesday, 23 November 2016

Royal Bank of Canada has provided $250 million of mortgage financing against 1801 California St., a 1.3 million-square-foot office property in downtown Denver. The loan replaces $206.5 million of debt that RBC had provided in 2012 and was coming due. The property's owner, a venture led by Brookfield Property Partners, had been trying to sell at least a stake in it.

Capital-Raising for Calmwater Fund Reaches Halfway Point

Friday, 09 December 2016

Calmwater Capital has raised roughly half of a debt-investment fund, which has a target of $750 million. The vehicle, Calmwater Real Estate Credit Fund 3, would be used to originate bridge loans of $5 million to $50 million against a variety of property types across the country.

Risk-Retention Loan Premium Not as Big as Feared

Thursday, 08 December 2016

For nearly a year, industry watchers have predicted that pending risk-retention rules, which will impact a substantial segment of the commercial mortgage business, would result in an increase in borrowing costs. Expectations of that premium generally ranged from 20 to 50 basis points. But things haven't been as bleak.

CWCapital Offers Delinquent CMBS Loan Against UBS Center in Stamford, Conn.

Wednesday, 07 December 2016

CWCapital Asset Management, which is managing the $148.7 million CMBS loan against the 682,327-square-foot UBS Center in Stamford, Conn., has put the nonperforming loan up for sale. It has hired Mission Capital Advisors to sell the loan and is shooting to complete a transaction by Feb. 24.

Mack-Cali Tees Up for Sale Northern N.J. Office Portfolio

Wednesday, 07 December 2016

Mack-Cali Realty Corp. is offering for sale a portfolio of nine office buildings with 2.2 million square feet in Bergen County, N.J. The Jersey City, N.J., REIT has hired HFF to market the portfolio, which could fetch $240 million.

Hines, GE in Talks to Sell Atlanta Financial Center to Sumitomo

Tuesday, 06 December 2016

A venture of Hines and General Motors Asset Management is said to be in talks to sell the 914,747-square-foot Atlanta Financial Center to Sumitomo Corp. of America for $219.5 million, or $240/sf. The sales price is believed to translate to a capitalization rate in the low 5-percent range.

JCR Capital Seeks to Broaden Bridge-Loan Offering

Tuesday, 06 December 2016

JCR Capital, which provides debt and equity capital for middle-market properties across the country, is looking to broaden its menu of offerings. The Denver investment manager is looking to develop a separate account relationship in order to start writing larger bridge loans, of up to $40 million. Its loans typically average $7 million each.

Inland Teams with Sound Point on Debt Venture

Thursday, 01 December 2016

Inland Real Estate Investment Corp., an old-line sponsor of non-traded REITs, has launched an effort to pursue opportunities in the debt market in a venture with Sound Point Capital. The venture reunites Don MacKinnon, portfolio manager of real estate for Sound Point, with Mitchell Sabshon, president and chief executive of Inland.

CMBS Issuance Expected to End Year at $67.2Bln; 2017 Issuance Could Be Lower

Thursday, 01 December 2016

The year is likely to end with $67.2 billion of CMBS having been issued, based on deals that currently are being prepared for market. That would be 29.3 percent behind last year's $95.1 billion of issuance and would mark the first time since 2009 that annual issuance had declined from the year before. Expectations for next year are for issuance to possibly decline slightly or remain flat.

Crowdfunding Platform Raises Capital to Originate Bridge Loans

Wednesday, 30 November 2016

Crowdfunding platform RealtyShares is looking to carve out a bigger slice of the commercial real estate lending business. It's lined up institutional capital that it will use to write bridge loans of up to $10 million each against office, retail, industrial and apartment properties as part of an effort to provide property owners a one-stop shop for capital.

Carlyle, King Pay $167Mln for Lexington, Mass., Office/Lab Property

Tuesday, 29 November 2016

A venture of the Carlyle Group and King Street Properties has paid $167 million, or about $416/sf, for a 401,080-square-foot office and laboratory complex on Hayden Avenue in the Boston suburb of Lexington, Mass.

Rialto Raises $1.3Bln for Latest Series of Investment Funds

Monday, 28 November 2016

Rialto Capital Management has raised $1.3 billion for its latest series of investment vehicles, equaling the amount it had raised for a predecessor fund and putting it well on its way to reaching its $1.75 billion target. The $1.1 billion it's raised for the fund's debt component is more than the $1 billion it had targeted.

RBC Lends $250Mln Against Denver Office Property

Wednesday, 23 November 2016

Royal Bank of Canada has provided $250 million of mortgage financing against 1801 California St., a 1.3 million-square-foot office property in downtown Denver. The loan replaces $206.5 million of debt that RBC had provided in 2012 and was coming due. The property's owner, a venture led by Brookfield Property Partners, had been trying to sell at least a stake in it.

Capital-Raising by Non-Traded REITs in 3Q Slowest in 7 Years

Monday, 21 November 2016

Non-traded REITs raised $1 billion of equity during the third quarter, according to Summit Investment Research. That's the weakest quarter since 2009 for the sector, which has been reeling since last year, when AR Global, until then the leading sponsor of non-traded REITs, quit the business.

Tier REIT Lists for Sale Baltimore's 500 East Pratt

Friday, 18 November 2016

Tier REIT Inc. has again turned to HFF to help it sell one of its non-core assets - 500 East Pratt, a 219,712-square-foot office building in Baltimore's Inner Harbor. The building is one of five that the Dallas REIT plans to sell by the end of 2018. It's the second that HFF is tasked with selling.

Industrial-Property Specialist Moves Forward with $1.15Bln Value-Add Fund

Thursday, 17 November 2016

Exeter Property Group is well on its way to raising what could be $1.15 billion of equity commitments for its latest value-add investment fund. The fund would be the fourth such vehicle for the Plymouth Meeting, Pa., investment manager, which last year sold a portfolio of 210 properties for $3.1 billion.

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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CMBS 2.0 Spreads

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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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