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

Korman Offers for Sale Suburban Philadelphia Apartments

Friday, 27 May 2016

Korman Communities is offering for sale ARK Bucks County, a 1,072-unit apartment complex in the Philadelphia suburb of Bensalem, Pa. The 41-year-old property, at 5301 Neshaminy Blvd., is being offered through CBRE. The thinking is that it would sell for a price resulting in a capitalization rate of roughly 6 percent.

Buyer of Fla. Retail Center Sues C-III, Alleging Manipulation of Fair-Value Option

Thursday, 26 May 2016

Davidson Kempner Capital Management, which earlier this year bought the Gulf Coast Town Center, has sued C-III Asset Management for trying to orchestrate an "audacious scheme" to buy the Fort Myers, Fla., retail property at an "artificially low" price, using the fair-value option built into most CMBS deals.

Industry Still Scrambling to Deal with Risk Retention Rules

Wednesday, 25 May 2016

With 213 days before new risk-retention rules go into effect, the CMBS industry is still trying to figure out how it will deal with them. Proposed legislation to soften the rules' impact on the sector appear to be a long-shot, and issuers and investors are still uncertain how exactly to structure transactions so they can abide by the rules with as little impact as possible.

REITs Set Ambitious Property Sales Goals

Tuesday, 24 May 2016

The largest REITs earlier this year had set a goal of selling some $16 billion of properties - most were looking to take advantage of the high prices investors were paying to fine tune their portfolios and pay down debt. Others were looking to opportunistically buy their own stock.

Monday, 23 May 2016

Banyan Street Capital is said to have struck a deal to pay about $69 million, or $207/sf, for American Center, a 332,787-square-foot office property in the Washington, D.C., suburb of Vienna, Va. The Miami firm is buying the property, which is part of the collateral pool for a substantial CMBS loan, from Beacon Capital Properties.

Seasoned New York Property Pro Launches Bridge Lending Operation

Friday, 20 May 2016

David Schwartz, a seasoned New York real estate professional, has founded Fort Amsterdam Capital to provide short-term loans against small middle-market apartment and mixed-use properties in New York. He's taking advantage of an underserved market and is in the process of raising a fund.

Suburban New York Apartments Hit Sales Market

Thursday, 19 May 2016

AvalonBay Communities Inc. is offering for sale the eaves Nanuet, a 504-unit apartment property in Rockland County, N.Y. The property, about 36 miles from Manhattan, could sell for $150 million. The property serves as collateral for $62.3 million of Freddie Mac debt that matures in May 2019.

Morgan Stanley Lends $159.3Mln Against Chicago Apartments

Wednesday, 18 May 2016

Morgan Stanley has provided $159.3 million of floating-rate financing against North Harbor Tower, a 600-unit apartment property in the Loop submarket of Chicago. The property, at 175 North Harbor Drive, near Maggie Daley Park, was purchased recently by Crescent Heights of Miami.

Upscale Tampa, Fla., Apartments Returning to Sales Market

Tuesday, 17 May 2016

A venture of the Novare Group and Batson-Cook Development Co., which last year sought to sell its SkyHouse Channelside apartment property in downtown Tampa, Fla., is giving it another go. It's hired Walker & Dunlop to offer the upscale 320-unit property, at 112 North 12th St., and the buzz is that it could sell for more than $300,000/unit, or some $96 million.

Monday, 16 May 2016

The San Francisco investment manager is well on its way to raising what could be $1.5 billion of equity commitments for its latest value-add investment fund, DivcoWest Fund V. It's so far raised more than $1 billion for the fund, which would follow a strategy similar to that of its predecessors: Buy well-located properties, particularly those catering to the tech industry, and improve their value.

New York City's Apartment Investment-Sales Market Cools Off

Friday, 13 May 2016

Sales transaction activity in New York City's apartment market has cooled off in recent months. A monthly average of 57 property sales have taken place over the past half year, down sharply from the 75-deal monthly average over the six months through last July, according to Ariel Property Advisors, a New York investment-sales shop.

Thursday, 12 May 2016

JPMorgan Asset Management is teeing up for sale the Southeast Financial Center, a 1.2 million-square-foot office property in downtown Miami. The New York investment manager is said to have hired HFF to market the two-building property, which it owns on behalf of its Strategic Property Fund.

Recent CMBS Conduit Deals Benefit from Issuance Drought, Healthy Demand

Wednesday, 11 May 2016

The latest in what appears to be a growing series of CMBS conduit deals priced and benefited from solid technicals - an expected lengthy issuance drought, combined with pent-up investor demand. Its benchmark class priced in line with the most recent deal, but its more subordinate classes were hit as investors are discriminating among collateral pools.

VEREIT Aims to Offer Up To $1Bln of Properties in Final Leg of Disposition Effort

Wednesday, 11 May 2016

VEREIT Inc. is aiming to offer for sale $800 million to $1 billion of properties this year as it continues an effort to fine-tune its portfolio. It hopes that by offering up to $1 billion of properties, it could execute on the sale of perhaps $500 million of properties. That would bring its total sales since early last year to $2.2 billion.

Tuesday, 10 May 2016

Metropolitan Life Insurance Co. and Prudential Insurance Co. of America have provided $550 million of mortgage financing against the Cherry Creek Shopping Center in Denver. The financing was used to retire $280 million of CMBS financing that was slated to mature in June.

Korman Offers for Sale Suburban Philadelphia Apartments

Friday, 27 May 2016

Korman Communities is offering for sale ARK Bucks County, a 1,072-unit apartment complex in the Philadelphia suburb of Bensalem, Pa. The 41-year-old property, at 5301 Neshaminy Blvd., is being offered through CBRE. The thinking is that it would sell for a price resulting in a capitalization rate of roughly 6 percent.

Buyer of Fla. Retail Center Sues C-III, Alleging Manipulation of Fair-Value Option

Thursday, 26 May 2016

Davidson Kempner Capital Management, which earlier this year bought the Gulf Coast Town Center, has sued C-III Asset Management for trying to orchestrate an "audacious scheme" to buy the Fort Myers, Fla., retail property at an "artificially low" price, using the fair-value option built into most CMBS deals.

Industry Still Scrambling to Deal with Risk Retention Rules

Wednesday, 25 May 2016

With 213 days before new risk-retention rules go into effect, the CMBS industry is still trying to figure out how it will deal with them. Proposed legislation to soften the rules' impact on the sector appear to be a long-shot, and issuers and investors are still uncertain how exactly to structure transactions so they can abide by the rules with as little impact as possible.

REITs Set Ambitious Property Sales Goals

Tuesday, 24 May 2016

The largest REITs earlier this year had set a goal of selling some $16 billion of properties - most were looking to take advantage of the high prices investors were paying to fine tune their portfolios and pay down debt. Others were looking to opportunistically buy their own stock.

Seasoned New York Property Pro Launches Bridge Lending Operation

Friday, 20 May 2016

David Schwartz, a seasoned New York real estate professional, has founded Fort Amsterdam Capital to provide short-term loans against small middle-market apartment and mixed-use properties in New York. He's taking advantage of an underserved market and is in the process of raising a fund.

Suburban New York Apartments Hit Sales Market

Thursday, 19 May 2016

AvalonBay Communities Inc. is offering for sale the eaves Nanuet, a 504-unit apartment property in Rockland County, N.Y. The property, about 36 miles from Manhattan, could sell for $150 million. The property serves as collateral for $62.3 million of Freddie Mac debt that matures in May 2019.

Morgan Stanley Lends $159.3Mln Against Chicago Apartments

Wednesday, 18 May 2016

Morgan Stanley has provided $159.3 million of floating-rate financing against North Harbor Tower, a 600-unit apartment property in the Loop submarket of Chicago. The property, at 175 North Harbor Drive, near Maggie Daley Park, was purchased recently by Crescent Heights of Miami.

Upscale Tampa, Fla., Apartments Returning to Sales Market

Tuesday, 17 May 2016

A venture of the Novare Group and Batson-Cook Development Co., which last year sought to sell its SkyHouse Channelside apartment property in downtown Tampa, Fla., is giving it another go. It's hired Walker & Dunlop to offer the upscale 320-unit property, at 112 North 12th St., and the buzz is that it could sell for more than $300,000/unit, or some $96 million.

New York City's Apartment Investment-Sales Market Cools Off

Friday, 13 May 2016

Sales transaction activity in New York City's apartment market has cooled off in recent months. A monthly average of 57 property sales have taken place over the past half year, down sharply from the 75-deal monthly average over the six months through last July, according to Ariel Property Advisors, a New York investment-sales shop.

Recent CMBS Conduit Deals Benefit from Issuance Drought, Healthy Demand

Wednesday, 11 May 2016

The latest in what appears to be a growing series of CMBS conduit deals priced and benefited from solid technicals - an expected lengthy issuance drought, combined with pent-up investor demand. Its benchmark class priced in line with the most recent deal, but its more subordinate classes were hit as investors are discriminating among collateral pools.

VEREIT Aims to Offer Up To $1Bln of Properties in Final Leg of Disposition Effort

Wednesday, 11 May 2016

VEREIT Inc. is aiming to offer for sale $800 million to $1 billion of properties this year as it continues an effort to fine-tune its portfolio. It hopes that by offering up to $1 billion of properties, it could execute on the sale of perhaps $500 million of properties. That would bring its total sales since early last year to $2.2 billion.

Blackstone Lends $207.6Mln Against Chicago's Sullivan Center

Monday, 09 May 2016

Blackstone Mortgage Trust Inc. has provided $207.6 million of financing against the Sullivan Center in Chicago. The debt against the 15-story property matures in 2021. A venture of Madison Capital and KKR & Co. recently acquired the property, with a mix of office and retail space, from El-Ad Canada Inc.

Ladder Capital Gains CMBS Issuance Option With Shelf Registration

Friday, 06 May 2016

Ladder Capital Corp. has filed its own shelf registration, giving it the ability to securitize commercial mortgages it writes under its own banner. If it were to go that route, the New York finance company would retain any resulting B-pieces - a role it's well suited for given its permanent capital. But it might not ever use its shelf. It filed it for the flexibility it provides.

CMBS Loan That Matured in 2012 Finally Gets Paid Off

Thursday, 05 May 2016

A $22 million CMBS loan against an Austin, Texas, office building that had matured four years ago finally has been retired. The collateral property, while fully leased, suffered from a structural defect that made lenders unwilling to lend against it. In addition, it was owned by a tenant-in-common group.

Piedmont Aims for Up To $1Bln of Property Sales Through 2019

Wednesday, 04 May 2016

The Atlanta-area office REIT is planning to increase its pace of dispositions as it continues to reposition its portfolio. It might plow proceeds into properties in markets that might not yet have been picked over by investors and still have the potential for strong growth. But it expects to be a net seller this year.

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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