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

S3 Capital Wrote $915Mln of Loans in 2019; Expects Similar Volume This Year

Friday, 24 January 2020

S3 Capital Partners, which specializes in funding bridge and construction loans against properties in New York City and New Jersey, originated 85 loans totaling $915 million last year. It expects to fund a similar volume in 2020.

2 Carey Watermark Non-Traded REITs to Merge in Path to Liquidity

Thursday, 23 January 2020

W.P. Carey Inc. and Watermark Capital Partners are merging two non-traded REITs they sponsor. The move, which is subject to shareholder approval, would create a company, Watermark Lodging Trust, that would own 33 full-service hotels with 9,658 rooms in some of the country's biggest markets.

Sheraton Park Hotel in Anaheim, Calif., Sells for $52.5Mln

Wednesday, 22 January 2020

The Sheraton Park Hotel in Anaheim, Calif., whose $65 million CMBS loan had soured in 2012, was sold at auction, generating $52.5 million of proceeds for Wachovia Bank Commercial Mortgage Trust, 2007-C34, which had held the loan. The CMBS trust has only three loans left in its collateral pool. All mature in 2024.

Capital-Raising in Structured Tax-Deferred Exchange Market Nears Pre-Recession Levels

Tuesday, 21 January 2020

Capital-raising in the structured tax-deferred exchange market last year hit $3.49 billion, the highest it's been since 2006, when it hit a record $3.65 billion, according to Mountain Dell Consulting LLC. Driving the volume is the continued increase in property pricing, which has allowed investors to reap gains from their holdings, which they've increasingly chosen to shelter from taxes.

Freddie, Fannie Funded $148Bln of Multifamily Loans in 2019

Friday, 17 January 2020

Freddie Mac funded about $78 billion of loans, while Fannie Mae funded $70 billion, giving the two a collective 41 percent share of the $364 billion of projected multifamily lending for the year. The expectation is that each would handle comparable volumes this year, when multifamily lending volumes are expected to climb by nearly 9 percent.

Blackstone's Non-Traded REIT Raised $8.7Bln in 2019, Up 201 Percent From 2018

Thursday, 16 January 2020

Blackstone Group's entry in the non-traded REIT sector continues to hit home runs. The company, Blackstone Real Estate Income Trust, which was launched in 2016, raised $8.7 billion of equity capital last year, according to Blue Vault. That was up from the $2.9 billion it had raised in 2018.

CMBS Conduit Loans Maturing Through 2021 Face Few Refinancing Hurdles

Thursday, 16 January 2020

A total of $109.6 billion of CMBS loans are up for refinancing over the next two years. Calm waters are forecast, even if interest rates climb.

Crowdfunding Starts Gaining Ground in Commercial Real Estate

Thursday, 16 January 2020

Initially, crowdfunding, the process of raising capital via the Internet, was used to raise preferred equity and debt. Now, platforms are broadening their offerings to include other pieces of a property's capital stack.

Dallas Investment Manager Launches First Investment Fund, Plans Follow-Up Vehicle

Wednesday, 15 January 2020

The Prescott Group, a Dallas real estate investment manager, has raised $63.4 million of equity commitments for its first investment fund that is pursuing property acquisitions and debt investments throughout the United States. The vehicle, Prescott Strategies Fund I, already has made 12 investments, primarily in the office sector and most of which it has bought through foreclosure auctions or in distressed situations.

Low Interest Rates Drive Surge in CMBS Defeasance Activity

Wednesday, 15 January 2020

The volume of loans defeased, or replaced by government securities, through last November totaled $12.79 billion. That's up 46 percent from $9.7 billion in 2018.

The Next Big Thing in Real Estate: Blockchain?

Wednesday, 15 January 2020

The likely benefits of the commercial real estate industry adopting blockchain - a decentralized, irrefutable ledger - would be cost reduction and time savings, as well as cleaner and more standardized data.

CRE Not Done Growing (Quite) Yet

Tuesday, 14 January 2020

It's been said that 2020 would usher in upward pressure on capitalization rates and downward pressure on property values. However, that does not appear to be the case.

Hotel Industry Looks to Emulate Airbnb Model

Tuesday, 14 January 2020

The home-sharing company thrived last decade, blurring the lines between hotels and Airbnb.

Blackstone Pays $268Mln for Sheraton Phoenix Hotel

Monday, 13 January 2020

Blackstone Group has paid $268 million, or $267,198/room, for the 1,003-room Sheraton hotel in downtown Phoenix. A venture of Marriott International, TLG Investment Partners and Concord Wilshire Capital was the seller.

Shifting from Post-Crisis Regulation to Fresh Policy Challenges in 2020

Monday, 13 January 2020

This year's policy slate will shift from the Dodd-Frank policymaking cycle to some major headline issues, including the Libor transition, reform of the government-sponsored enterprises and relief for lenders complying with the anti-money laundering Beneficial Ownership requirements.

S3 Capital Wrote $915Mln of Loans in 2019; Expects Similar Volume This Year

Friday, 24 January 2020

S3 Capital Partners, which specializes in funding bridge and construction loans against properties in New York City and New Jersey, originated 85 loans totaling $915 million last year. It expects to fund a similar volume in 2020.

2 Carey Watermark Non-Traded REITs to Merge in Path to Liquidity

Thursday, 23 January 2020

W.P. Carey Inc. and Watermark Capital Partners are merging two non-traded REITs they sponsor. The move, which is subject to shareholder approval, would create a company, Watermark Lodging Trust, that would own 33 full-service hotels with 9,658 rooms in some of the country's biggest markets.

Sheraton Park Hotel in Anaheim, Calif., Sells for $52.5Mln

Wednesday, 22 January 2020

The Sheraton Park Hotel in Anaheim, Calif., whose $65 million CMBS loan had soured in 2012, was sold at auction, generating $52.5 million of proceeds for Wachovia Bank Commercial Mortgage Trust, 2007-C34, which had held the loan. The CMBS trust has only three loans left in its collateral pool. All mature in 2024.

Capital-Raising in Structured Tax-Deferred Exchange Market Nears Pre-Recession Levels

Tuesday, 21 January 2020

Capital-raising in the structured tax-deferred exchange market last year hit $3.49 billion, the highest it's been since 2006, when it hit a record $3.65 billion, according to Mountain Dell Consulting LLC. Driving the volume is the continued increase in property pricing, which has allowed investors to reap gains from their holdings, which they've increasingly chosen to shelter from taxes.

Freddie, Fannie Funded $148Bln of Multifamily Loans in 2019

Friday, 17 January 2020

Freddie Mac funded about $78 billion of loans, while Fannie Mae funded $70 billion, giving the two a collective 41 percent share of the $364 billion of projected multifamily lending for the year. The expectation is that each would handle comparable volumes this year, when multifamily lending volumes are expected to climb by nearly 9 percent.

Blackstone's Non-Traded REIT Raised $8.7Bln in 2019, Up 201 Percent From 2018

Thursday, 16 January 2020

Blackstone Group's entry in the non-traded REIT sector continues to hit home runs. The company, Blackstone Real Estate Income Trust, which was launched in 2016, raised $8.7 billion of equity capital last year, according to Blue Vault. That was up from the $2.9 billion it had raised in 2018.

CMBS Conduit Loans Maturing Through 2021 Face Few Refinancing Hurdles

Thursday, 16 January 2020

A total of $109.6 billion of CMBS loans are up for refinancing over the next two years. Calm waters are forecast, even if interest rates climb.

Crowdfunding Starts Gaining Ground in Commercial Real Estate

Thursday, 16 January 2020

Initially, crowdfunding, the process of raising capital via the Internet, was used to raise preferred equity and debt. Now, platforms are broadening their offerings to include other pieces of a property's capital stack.

Dallas Investment Manager Launches First Investment Fund, Plans Follow-Up Vehicle

Wednesday, 15 January 2020

The Prescott Group, a Dallas real estate investment manager, has raised $63.4 million of equity commitments for its first investment fund that is pursuing property acquisitions and debt investments throughout the United States. The vehicle, Prescott Strategies Fund I, already has made 12 investments, primarily in the office sector and most of which it has bought through foreclosure auctions or in distressed situations.

Low Interest Rates Drive Surge in CMBS Defeasance Activity

Wednesday, 15 January 2020

The volume of loans defeased, or replaced by government securities, through last November totaled $12.79 billion. That's up 46 percent from $9.7 billion in 2018.

The Next Big Thing in Real Estate: Blockchain?

Wednesday, 15 January 2020

The likely benefits of the commercial real estate industry adopting blockchain - a decentralized, irrefutable ledger - would be cost reduction and time savings, as well as cleaner and more standardized data.

CRE Not Done Growing (Quite) Yet

Tuesday, 14 January 2020

It's been said that 2020 would usher in upward pressure on capitalization rates and downward pressure on property values. However, that does not appear to be the case.

Hotel Industry Looks to Emulate Airbnb Model

Tuesday, 14 January 2020

The home-sharing company thrived last decade, blurring the lines between hotels and Airbnb.

Blackstone Pays $268Mln for Sheraton Phoenix Hotel

Monday, 13 January 2020

Blackstone Group has paid $268 million, or $267,198/room, for the 1,003-room Sheraton hotel in downtown Phoenix. A venture of Marriott International, TLG Investment Partners and Concord Wilshire Capital was the seller.

Shifting from Post-Crisis Regulation to Fresh Policy Challenges in 2020

Monday, 13 January 2020

This year's policy slate will shift from the Dodd-Frank policymaking cycle to some major headline issues, including the Libor transition, reform of the government-sponsored enterprises and relief for lenders complying with the anti-money laundering Beneficial Ownership requirements.

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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
warehouse-backstage