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

GEM Realty Aims for Biggest Fund Yet

Monday, 29 August 2016

GEM Realty Capital Inc. is well on its way to raising its latest, and largest, investment fund. The Chicago investment manager is shooting for $1.1 billion of equity commitments for the vehicle, GEM Realty Fund VI LP, and an affiliated parallel fund. It's already raised more than $705 million of commitments for the vehicle.

 

AIG, JPMorgan Lend $265Mln Against Boston's Church Park

Friday, 26 August 2016

AIG Investments provided $200 million of senior financing, while JPMorgan Chase Bank provided $65 million of mezzanine debt against the Church Park apartment and retail property in Boston's Back Bay. The debt was used to retire, through defeasance, a $116.3 million mortgage that Freddie Mac had provided in 2009.

Friday, 26 August 2016

The credit metrics for conduit deals this year has improved when compared with last year, but some of that can be explained by the inclusion of very low-leverage loans in what are smaller deals this year. The thinking has been that deals this year suffered from a great deal of barbelling. But analysis by Wells Fargo Securities shows that barbelling isn't as bad as feared.

Piedmont Offers for Sale Washington, D.C.'s Two Independence Square

Thursday, 25 August 2016

Piedmont Office Realty Trust is offering for sale Two Independence Square, a 605,897-square-foot office building in the Southwest market of Washington, D.C. Cushman & Wakefield has the assignment. The property is fully occupied by the National Aeronautics and Space Administration through 2028.

Forest City Reviews Retail Holdings for Possible Sale

Wednesday, 24 August 2016

Forest City Realty Trust Inc. has launched a strategic review that might result in it selling most of its retail exposure, which is comprised of 14 regional malls around the country and 19 specialty retail centers in New York. The move is part of an ongoing portfolio refocusing effort by the Cleveland REIT, which would redeploy proceeds into office and apartment properties.

Apartment Completions Seen Jumping This Year

Tuesday, 23 August 2016

Some 321,200 apartment units are expected to be added to the country's inventory this year, according to RENTCafe, an apartment search site run by Yardi Systems. That would be the biggest annual increase in deliveries in 10 years and compares with the 214,108 units that were added last year. The increase in deliveries is contributing to the overall slowdown in rent growth.

Monday, 22 August 2016

The REIT's decision to adopt a liquidation plan culminates a process that started just more than a year ago as it sought to shore up its lagging share price. In May, it had agreed to merge with JBG Cos., but that deal was terminated earlier this month.

Friday, 19 August 2016

The structured tax-deferred exchange market continues to ramp up, with $706 million of equity having been raised during the first half, putting the year on track to see $1.4 billion. That would compare with the roughly $1.1 billion of equity that was raised last year, according to Mountain Dell Consulting.

Realty Mogul Moves into Investment Management, Launches Non-Traded REIT

Thursday, 18 August 2016

Realty Mogul has entered the investment management business, becoming the latest crowdfunding platform to do so. It's launched a non-traded REIT that would invest in commercial real estate debt assets, including subordinate and mezzanine loans, as well as in preferred equity, CMBS and REITs.

John Hancock Lends $115Mln Against Miami Office Property

Wednesday, 17 August 2016

John Hancock Life Insurance Co. has provided a $115 million loan against One Biscayne, a 691,783-square-foot office property in downtown Miami. The 10-year loan allowed for the refinancing of an $83 million loan that was securitized through DBUBS Mortgage Trust, 2011-LC3.

Money360 Tops $100Mln of Loan Originations; Aims to Triple That Next Year

Tuesday, 16 August 2016

Money360 Inc., which started originating commercial real estate loans less than a year ago, has breached the $100 million level. It's now aiming to originate $250 million to $300 million over the next 12 months. To get to that level, the company has been beefing up its staff, adding originators and back-office professionals.

Proposed Sale Prompts Special Transfer for Modified CMBS Loan Against Ala. Mall

Tuesday, 16 August 2016

The CMBS financing against Riverchase Galleria in suburban Birmingham, Ala., once again has been transferred to special servicing. But this time it's because the collateral property's owner, a venture led by General Growth Properties Inc., is planning to sell the 1.5 million-square-foot property.

Monday, 15 August 2016

TIAA has provided $400 million of mortgage financing against a portfolio of six office properties with about 1 million square feet in the downtown and East End areas of Washington, D.C. The loan was used by the owner of the portfolio, Tishman Speyer Properties, to prepay $290 million of CMBS that was slated to mature in January.

Franklin Street Affiliate Offers for Sale Chicago Office Property

Friday, 12 August 2016

An affiliate of Franklin Street Properties Corp. is teeing up for sale 303 East Wacker Drive, an 860,000-square-foot office property in the East Loop area of Chicago. The REIT has hired HFF to market the property, which it carries on its balance sheet at a value of $143 million.

Blackstone Moves into Non-Traded REIT Sector

Friday, 12 August 2016

The big kahuna of the real estate investment management world is looking to take its institutional platform to the retail world through a non-traded REIT. The vehicle, Blackstone Real Estate Income Trust Inc., will pursue core-plus investments focused on current income. It aims to raise $5 billion by selling shares, initially for $10 apiece.

AIG, JPMorgan Lend $265Mln Against Boston's Church Park

Friday, 26 August 2016

AIG Investments provided $200 million of senior financing, while JPMorgan Chase Bank provided $65 million of mezzanine debt against the Church Park apartment and retail property in Boston's Back Bay. The debt was used to retire, through defeasance, a $116.3 million mortgage that Freddie Mac had provided in 2009.

Piedmont Offers for Sale Washington, D.C.'s Two Independence Square

Thursday, 25 August 2016

Piedmont Office Realty Trust is offering for sale Two Independence Square, a 605,897-square-foot office building in the Southwest market of Washington, D.C. Cushman & Wakefield has the assignment. The property is fully occupied by the National Aeronautics and Space Administration through 2028.

Forest City Reviews Retail Holdings for Possible Sale

Wednesday, 24 August 2016

Forest City Realty Trust Inc. has launched a strategic review that might result in it selling most of its retail exposure, which is comprised of 14 regional malls around the country and 19 specialty retail centers in New York. The move is part of an ongoing portfolio refocusing effort by the Cleveland REIT, which would redeploy proceeds into office and apartment properties.

Apartment Completions Seen Jumping This Year

Tuesday, 23 August 2016

Some 321,200 apartment units are expected to be added to the country's inventory this year, according to RENTCafe, an apartment search site run by Yardi Systems. That would be the biggest annual increase in deliveries in 10 years and compares with the 214,108 units that were added last year. The increase in deliveries is contributing to the overall slowdown in rent growth.

John Hancock Lends $115Mln Against Miami Office Property

Wednesday, 17 August 2016

John Hancock Life Insurance Co. has provided a $115 million loan against One Biscayne, a 691,783-square-foot office property in downtown Miami. The 10-year loan allowed for the refinancing of an $83 million loan that was securitized through DBUBS Mortgage Trust, 2011-LC3.

Money360 Tops $100Mln of Loan Originations; Aims to Triple That Next Year

Tuesday, 16 August 2016

Money360 Inc., which started originating commercial real estate loans less than a year ago, has breached the $100 million level. It's now aiming to originate $250 million to $300 million over the next 12 months. To get to that level, the company has been beefing up its staff, adding originators and back-office professionals.

Proposed Sale Prompts Special Transfer for Modified CMBS Loan Against Ala. Mall

Tuesday, 16 August 2016

The CMBS financing against Riverchase Galleria in suburban Birmingham, Ala., once again has been transferred to special servicing. But this time it's because the collateral property's owner, a venture led by General Growth Properties Inc., is planning to sell the 1.5 million-square-foot property.

Franklin Street Affiliate Offers for Sale Chicago Office Property

Friday, 12 August 2016

An affiliate of Franklin Street Properties Corp. is teeing up for sale 303 East Wacker Drive, an 860,000-square-foot office property in the East Loop area of Chicago. The REIT has hired HFF to market the property, which it carries on its balance sheet at a value of $143 million.

Blackstone Moves into Non-Traded REIT Sector

Friday, 12 August 2016

The big kahuna of the real estate investment management world is looking to take its institutional platform to the retail world through a non-traded REIT. The vehicle, Blackstone Real Estate Income Trust Inc., will pursue core-plus investments focused on current income. It aims to raise $5 billion by selling shares, initially for $10 apiece.

Landesbank Lends $160Mln Against D.C. Office, Retail Portfolio

Thursday, 11 August 2016

Landesbank Baden-Wurttemberg has provided $160 million of floating-rate financing against a portfolio of 13 properties with 303,059 square feet of office and retail space and five development sites, almost all of which are in Washington, D.C. The financing was part of a recapitalization that involved the sale of a stake to Acadia Realty Trust.

Goldman Sachs to Buy Charlotte, N.C., Office Property

Wednesday, 10 August 2016

An affiliate of Goldman Sachs has struck a deal to pay close to $71 million, or $300/sf, for South Tryon Square, a 237,186-square-foot office property in the Uptown area of Charlotte, N.C. A fund sponsored by the investment bank is buying the property from the Police & Fire Retirement System of the City of Detroit in a deal brokered by HFF. The property backs a $22.8 million CMBS loan that was coming due.

CMBS Conduit Issuance Heats Up; Collateral Quality Improves Markedly

Tuesday, 09 August 2016

Strong demand from investors that pushed pricing of the latest conduit to the tightest levels in some two years has prompted other issuers to move on their deals. Three conduit transactions, totaling $2 billion, have been teed up and should price within the next week or so. S&P, meanwhile, has been tapped to rate its second conduit since its SEC-imposed penalty expired.

Capital One Writes $345Mln Fannie Loan Against Calif. Apartments

Friday, 05 August 2016

Capital One Multifamily Finance LLC has originated a $345 million Fannie Mae loan against Newport Bluffs, a 1,052-unit apartment property in Newport Beach, Calif. The loan was used to refinance $264 million of CMBS debt that recently became open to prepayment.

First Potomac to Put Office, Industrial/Flex Properties on Sales Market after Labor Day

Friday, 05 August 2016

First Potomac Realty Trust has hired HFF to market for sale One Fair Oaks in Fairfax, Va., and Cushman & Wakefield to sell Plaza 500 in Alexandria. The offerings are the latest by the Bethesda, Md., REIT, which last year launched an effort to sell up to $350 million of properties in order to maximize shareholder value.

1H Defeasance Activity of $7.9Bln Well Shy of Last Year

Thursday, 04 August 2016

A total of 528 loans with a balance of $7.9 billion were defeased during the first half of the year, according to Moody's Investors Service. That compares with $10.2 billion of volume a year earlier. Full-year volume is on track to fall well below last year's total defeasance volume of $22.5 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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