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

Friday, 23 June 2017

With the pace of property sales running well behind that of last year, it's likely that commercial mortgage origination volumes this year will show a decline from 2016. That's according to the Mortgage Bankers Association, which has updated its projections and now sees full-year volume declining by 3 percent, to $478 billion.

Brookfield Seen Paying $45Mln for Independence Mall in N.C.

Thursday, 22 June 2017

Brookfield Asset Management is said to have purchased the Independence Mall in Wilmington, N.C., resolving a troubled $110 million CMBS loan against it. It paid $45 million for the 1 million-square-foot property, which betters the $42 million appraised valued pegged on it late last year.

JMP Funds Venture Pursuing Ambitious Apartment Investment Plan

Wednesday, 21 June 2017

A group of real estate executives that nearly four years ago launched a management and advisory firm, whose portfolio has grown to some 4,500 apartment units, is now aiming to buy properties for its own account. They've formed 5 Cap Realty LLC and ventured with JMP Asset Management to build a $1 billion portfolio of apartment properties in the coming five years.

Departure of Anchor Tenant Puts CMBS Loan Against Ala. Office at Risk

Tuesday, 20 June 2017

Regions Bank, which occupies just more than one-third of the space at the Regions Harbert Plaza office building in Birmingham, Ala., won't be renewing its lease, which matures at the end of the year. That has prompted the property's $82.7 million CMBS loan to transfer to special servicer CWCapital Asset Management.

CMBS Issuance Picks Up Steam, Topping 2016 Volumes

Monday, 19 June 2017

CMBS issuance, which was running at a snail's pace through April, has picked up smartly since then. Including deals in the pipeline, issuance in May and June will top the volume for the first four months of the year. We're now looking at $32.4 billion of issuance for the first half, up more than 19 percent from last year's anemic pace.

Wall of Maturities Update: May Runs Smoothly, but Largest Remaining Volume Lies Ahead

Friday, 16 June 2017

Continued availability of relatively low-cost financing options for commercial property owners has significantly reduced the risk that the long-feared "wall of maturities" would be a major problem for the CMBS industry. But it's not over yet, as nearly $10 billion of loans are set to mature this month.

IStar Gears Up to Offer for Sale Silicon Valley Office Leased to Apple

Thursday, 15 June 2017

IStar Financial Inc. is gearing up to offer for sale 1050-1090 East Arques Ave., a 224,548-square-foot office building in Sunnyvale, Calif., that's fully leased to Apple Inc. The four-building property was constructed in 1985 and completely redeveloped four years ago, facilitating Apple's long-term lease.

Freddie Rolls Out Securitization of Tax-Free Multifamily Mortgages

Wednesday, 14 June 2017

Freddie Mac for the first time has securitized a portfolio of tax-exempt loans against affordable-housing properties. The transaction, FRETE, 2017-ML01, joins the agency's well-known K- and SB-series deals. Freddie expects to issue similar deals at least once a quarter next year.

Ladder Capital Goes Solo, Launches $625.7Mln CMBS Conduit Deal

Wednesday, 14 June 2017

Ladder Capital Finance, which has been stockpiling conduit loans in recent months, has opted to securitize $625.7 million of its loans through its first solo transaction. The New York finance company has tapped Wells Fargo Securities as the deal's underwriter and will keep a 1.97 percent slice of each of the deal's bond classes. It's also sold a horizontal risk-retention piece.

LNR Brings Vista Ridge Mall to Market

Tuesday, 13 June 2017

LNR Partners, special servicer for the $64.3 million CMBS loan against the Vista Ridge Mall in suburban Dallas, is putting the 28-year-old retail property up for sale through NGKF Capital Markets. The mall is anchored by a Macy's, Dillard's, JCPenney and Sears, which own the spaces they occupy.

Monday, 12 June 2017

An affiliate of Argent Ventures has paid $126.2 million, or nearly $140/sf, for Westchester One, a 907,436-square-foot office property in White Plains, N.Y. The New York investment manager bought the 20-story office property, which includes two parking structures with a total of 2,550 spaces, from Beacon Capital Strategic Partners IV fund.

Friday, 09 June 2017

Permit activity, either for abandoned or new construction, seems to mimic trends in the larger economy, showing clear fluctuations during times of crisis and recovery.

IStar Financial Strikes $142Mln Deal for Land Beneath Los Angeles-Area Development

Friday, 09 June 2017

An affiliate of iStar Financial has agreed to pay $142 million for the ground beneath BLVD 6200, a 1,030-unit apartment property that's in the process of being developed in Hollywood, Calif. The improvements are being developed by a venture of DLJ Real Estate Capital Partners and Clarett Group.

Friday, 09 June 2017

Prospective tenants are getting creative in choosing space, incorporating technology into their decision making.

JRK Property Raises $330Mln for Fund Targeting Older Apartment Properties

Thursday, 08 June 2017

JRK Property Holdings of Los Angeles has raised $330 million of equity commitments for its fifth investment fund. The vehicle, JRK Multifamily Opportunities II, aims to invest in apartment properties that were constructed before 1990. It typically upgrades the properties and adds amenities, allowing it to improve cash flow.

Brookfield Seen Paying $45Mln for Independence Mall in N.C.

Thursday, 22 June 2017

Brookfield Asset Management is said to have purchased the Independence Mall in Wilmington, N.C., resolving a troubled $110 million CMBS loan against it. It paid $45 million for the 1 million-square-foot property, which betters the $42 million appraised valued pegged on it late last year.

JMP Funds Venture Pursuing Ambitious Apartment Investment Plan

Wednesday, 21 June 2017

A group of real estate executives that nearly four years ago launched a management and advisory firm, whose portfolio has grown to some 4,500 apartment units, is now aiming to buy properties for its own account. They've formed 5 Cap Realty LLC and ventured with JMP Asset Management to build a $1 billion portfolio of apartment properties in the coming five years.

Departure of Anchor Tenant Puts CMBS Loan Against Ala. Office at Risk

Tuesday, 20 June 2017

Regions Bank, which occupies just more than one-third of the space at the Regions Harbert Plaza office building in Birmingham, Ala., won't be renewing its lease, which matures at the end of the year. That has prompted the property's $82.7 million CMBS loan to transfer to special servicer CWCapital Asset Management.

CMBS Issuance Picks Up Steam, Topping 2016 Volumes

Monday, 19 June 2017

CMBS issuance, which was running at a snail's pace through April, has picked up smartly since then. Including deals in the pipeline, issuance in May and June will top the volume for the first four months of the year. We're now looking at $32.4 billion of issuance for the first half, up more than 19 percent from last year's anemic pace.

Wall of Maturities Update: May Runs Smoothly, but Largest Remaining Volume Lies Ahead

Friday, 16 June 2017

Continued availability of relatively low-cost financing options for commercial property owners has significantly reduced the risk that the long-feared "wall of maturities" would be a major problem for the CMBS industry. But it's not over yet, as nearly $10 billion of loans are set to mature this month.

IStar Gears Up to Offer for Sale Silicon Valley Office Leased to Apple

Thursday, 15 June 2017

IStar Financial Inc. is gearing up to offer for sale 1050-1090 East Arques Ave., a 224,548-square-foot office building in Sunnyvale, Calif., that's fully leased to Apple Inc. The four-building property was constructed in 1985 and completely redeveloped four years ago, facilitating Apple's long-term lease.

Freddie Rolls Out Securitization of Tax-Free Multifamily Mortgages

Wednesday, 14 June 2017

Freddie Mac for the first time has securitized a portfolio of tax-exempt loans against affordable-housing properties. The transaction, FRETE, 2017-ML01, joins the agency's well-known K- and SB-series deals. Freddie expects to issue similar deals at least once a quarter next year.

Ladder Capital Goes Solo, Launches $625.7Mln CMBS Conduit Deal

Wednesday, 14 June 2017

Ladder Capital Finance, which has been stockpiling conduit loans in recent months, has opted to securitize $625.7 million of its loans through its first solo transaction. The New York finance company has tapped Wells Fargo Securities as the deal's underwriter and will keep a 1.97 percent slice of each of the deal's bond classes. It's also sold a horizontal risk-retention piece.

LNR Brings Vista Ridge Mall to Market

Tuesday, 13 June 2017

LNR Partners, special servicer for the $64.3 million CMBS loan against the Vista Ridge Mall in suburban Dallas, is putting the 28-year-old retail property up for sale through NGKF Capital Markets. The mall is anchored by a Macy's, Dillard's, JCPenney and Sears, which own the spaces they occupy.

IStar Financial Strikes $142Mln Deal for Land Beneath Los Angeles-Area Development

Friday, 09 June 2017

An affiliate of iStar Financial has agreed to pay $142 million for the ground beneath BLVD 6200, a 1,030-unit apartment property that's in the process of being developed in Hollywood, Calif. The improvements are being developed by a venture of DLJ Real Estate Capital Partners and Clarett Group.

JRK Property Raises $330Mln for Fund Targeting Older Apartment Properties

Thursday, 08 June 2017

JRK Property Holdings of Los Angeles has raised $330 million of equity commitments for its fifth investment fund. The vehicle, JRK Multifamily Opportunities II, aims to invest in apartment properties that were constructed before 1990. It typically upgrades the properties and adds amenities, allowing it to improve cash flow.

Two Harbors Eyes Spinning Off Commercial Lending Business

Friday, 02 June 2017

Two Harbors Investment Corp., a mortgage REIT that two years ago had moved into the commercial real estate sector, is now planning to spin that business off through Granite Point Mortgage Trust Inc. The company would start life with a $1.8 billion portfolio of mortgage assets and generally would pursue relatively short-term loans against properties that are in some form of transition.

JCR Capital Launches Latest Investment Fund

Thursday, 01 June 2017

The Denver investment manager, which is focused solely on middle-market properties, is gearing up to raise a value-add fund that will provide mezzanine debt and preferred equity. It will round out the company's offerings, which include a core investment business and a fund with an opportunistic bent.

Emerging Fund Managers Face Headwinds as Investors Seek Track Records

Wednesday, 31 May 2017

It's become tougher to break into the real estate investment management business. After all, institutional investors rely on firms' track records when deciding in which funds to invest. Last year, $11 billion was raised by emerging managers, according to Preqin, down from the $30 billion raised in 2007 and $16 billion raised in both 2014 and 2015.

KKR Well on Way to Raising Follow-Up Property Investment Fund

Tuesday, 30 May 2017

KKR & Co. is well on its way to raising its second real estate investment fund. It's raised just more than $500 million of a targeted $2 billion for KKR Real Estate Partners Americas II. It would be a follow-up to a vehicle that had raised $1.23 billion just more than three years ago.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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