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

New York State Apartment Developer, 3 Others Accused of Mortgage Fraud

Thursday, 23 May 2019

Robert Morgan, founder of Morgan Communities of Pittsford, N.Y., and three others face federal charges of wire fraud, bank fraud and money laundering. The four men are accused of conspiring to obtain fraudulent loans between 2007 and 2017 from, among others, Freddie Mac and Fannie Mae against 20 properties scattered in six states. If convicted, each could face up to 30 years in prison.

Rockwood Seeks $1.25Bln for Latest Value-Add Fund

Wednesday, 22 May 2019

Rockwood Capital is looking to raise $1.25 billion of equity commitments for its latest value-add fund, Rockwood Capital Real Estate Partners Fund XI. It's a follow-up to a vehicle that raised $1.1 billion two years ago.

Oklahoma City Investor Buys 4 D.C.-Area Office Buildings from 2 CMBS Trusts

Tuesday, 21 May 2019

Radix Equity has acquired four office buildings with 463,691 square feet in the Washington, D.C., suburb of Fairfax, Va. The buildings serve as collateral for $180.3 million of securitized debt. The company is no stranger to dealing with CMBS trusts, having acquired four other office buildings last year from three separate deals.

Monday, 20 May 2019

Starwood Property Trust, which owns a 33 percent stake in a portfolio of four shopping malls that back a $685.6 million securitized loan, has written down the value of its interest in the properties by nearly 50 percent. That's not a good sign for the CMBS trust that holds the mortgage, Starwood Retail Property Trust, 2014-STAR. The loan matures in November.

Industrial REIT Increases Credit Facility, Buys 13-Property Portfolio for $226Mln

Friday, 17 May 2019

WPT Industrial REIT has acquired 13 buildings with 2.2 million sf in five states for $226 million, or about $102/sf. The deal is the largest for the Toronto REIT, which was spun off from Welsh Property Trust six years ago. Meanwhile, the company has increased its unsecured credit facility to $450 million from $300 million, allowing it to fund the purchase without obtaining mortgages against the properties.

CBL Eyes Giving Back 2 Additional Malls to CMBS Lenders

Thursday, 16 May 2019

CBL & Associates Properties Inc. is negotiating with CMBS lenders that hold a pair of mortgages totaling $94.6 million against two of its shopping centers. The two, a $67.2 million mortgage against the Greenbrier Mall in Chesapeake, Va., and a $27.4 million loan against the Hickory Point Mall in Forsyth, Ill., were restructured in recent years and face their final maturity in seven months.

MSC 2007-IQ16 Swallows $85.9Mln of Losses as 2 Collateral Assets Liquidate

Wednesday, 15 May 2019

Morgan Stanley Capital I Inc., 2007-IQ16, took it on the chin last month as two of its large collateral loans were liquidated, resulting in $85.9 million of additional losses to the trust. That brought losses absorbed by the trust to $371.1 million, or 14.3 percent of the deal's original $2.6 billion balance. The trust, whose remaining balance is $22.4 million, still has four remaining assets in its collateral pool. Each is in special servicing.

Venture Takes Over RealtyShares' Active Investment Portfolio, Investor Database

Tuesday, 14 May 2019

A venture of RREAF Holdings and iintoo Investments has taken over management of the active investment portfolio of RealtyShares, a San Francisco commercial real estate crowdfunding company that stopped taking new investments late last year. The deal also includes the company's database of more than 88,000 investors.

Monday, 13 May 2019

The Newport Beach, Calif., investment manager has raised $289.4 million of equity commitments for its second industrial fund, BKM Industrial Value Fund II. It also raised an additional $92.1 million of co-investments for the vehicle, which will target last-mile distribution properties in the Western United States.

Va. Investor Teams with New York Life to Acquire $1Bln of Apartments by 2022

Friday, 10 May 2019

Jefferson Apartment Group, a McLean, Va., investor, is teaming with New York Life Real Estate Investors to buy apartment properties in major and secondary markets in the Eastern United States. The venture, which already is under contract to buy its first property, expects to invest about $1 billion in the multifamily sector by 2022.

Starwood Property Writes Down Value of Mall Portfolio That Backs CMBS Debt

Thursday, 09 May 2019

The Greenwich, Conn., REIT has sharply written down the value of its stake in a portfolio of four malls with about 2.8 million square feet in four states. It made a $69 million write-down on its interest in the portfolio, which it now carries on its balance sheet at a value of $70.6 million. The properties serve as collateral for $686.4 million of securitized debt that matures in November.

Fortress Seen Buying $78Mln Soured Loan on Ariz. Resort at Par

Wednesday, 08 May 2019

The investment manager is said to have purchased, at par value, the $78 million CMBS loan against the 575-room JW Marriott Starr Pass Resort & Spa in Tucson, Ariz. The deal would resolve a loan that's been in special servicing since 2010. The resort's operations have rebounded in recent years.

New York REIT Lines Up $1.04Bln of Financing Against Hotel Portfolio

Tuesday, 07 May 2019

Hospitality Investors Trust Inc. has lined up $1.04 billion of financing against a portfolio of 92 hotels. The financing, which matures in November 2021, but has three extension options, is locked out from prepayment until May 2020. Proceeds were used to repay maturing debt against the portfolio, as well as reduce the balance of an existing term loan.

Park Hotels to Buy Chesapeake Lodging in $2.7Bln Deal

Monday, 06 May 2019

The deal will bolster Park's exposure to large coastal cities such as Boston, Miami, Los Angeles, San Diego and San Francisco. It expects to sell five hotels by the time the Chesapeake acquisition closes in the fourth quarter, leaving the combined company with 66 properties and 35,390 rooms in 17 states and Washington, D.C.

Boston Properties Venture Lines Up $255Mln Loan for New Marriott HQ in Bethesda, Md.

Friday, 03 May 2019

A venture that includes the Boston REIT and the Bernstein Cos. has secured $255 million of construction financing for the development of Marriott International's new headquarters in Bethesda, Md. PNC Bank provided the loan, which comes with a four-term year and a pair of one-year extension options. The loan carries a rate pegged to Libor plus 125 basis points.

New York State Apartment Developer, 3 Others Accused of Mortgage Fraud

Thursday, 23 May 2019

Robert Morgan, founder of Morgan Communities of Pittsford, N.Y., and three others face federal charges of wire fraud, bank fraud and money laundering. The four men are accused of conspiring to obtain fraudulent loans between 2007 and 2017 from, among others, Freddie Mac and Fannie Mae against 20 properties scattered in six states. If convicted, each could face up to 30 years in prison.

Rockwood Seeks $1.25Bln for Latest Value-Add Fund

Wednesday, 22 May 2019

Rockwood Capital is looking to raise $1.25 billion of equity commitments for its latest value-add fund, Rockwood Capital Real Estate Partners Fund XI. It's a follow-up to a vehicle that raised $1.1 billion two years ago.

Oklahoma City Investor Buys 4 D.C.-Area Office Buildings from 2 CMBS Trusts

Tuesday, 21 May 2019

Radix Equity has acquired four office buildings with 463,691 square feet in the Washington, D.C., suburb of Fairfax, Va. The buildings serve as collateral for $180.3 million of securitized debt. The company is no stranger to dealing with CMBS trusts, having acquired four other office buildings last year from three separate deals.

Industrial REIT Increases Credit Facility, Buys 13-Property Portfolio for $226Mln

Friday, 17 May 2019

WPT Industrial REIT has acquired 13 buildings with 2.2 million sf in five states for $226 million, or about $102/sf. The deal is the largest for the Toronto REIT, which was spun off from Welsh Property Trust six years ago. Meanwhile, the company has increased its unsecured credit facility to $450 million from $300 million, allowing it to fund the purchase without obtaining mortgages against the properties.

CBL Eyes Giving Back 2 Additional Malls to CMBS Lenders

Thursday, 16 May 2019

CBL & Associates Properties Inc. is negotiating with CMBS lenders that hold a pair of mortgages totaling $94.6 million against two of its shopping centers. The two, a $67.2 million mortgage against the Greenbrier Mall in Chesapeake, Va., and a $27.4 million loan against the Hickory Point Mall in Forsyth, Ill., were restructured in recent years and face their final maturity in seven months.

MSC 2007-IQ16 Swallows $85.9Mln of Losses as 2 Collateral Assets Liquidate

Wednesday, 15 May 2019

Morgan Stanley Capital I Inc., 2007-IQ16, took it on the chin last month as two of its large collateral loans were liquidated, resulting in $85.9 million of additional losses to the trust. That brought losses absorbed by the trust to $371.1 million, or 14.3 percent of the deal's original $2.6 billion balance. The trust, whose remaining balance is $22.4 million, still has four remaining assets in its collateral pool. Each is in special servicing.

Venture Takes Over RealtyShares' Active Investment Portfolio, Investor Database

Tuesday, 14 May 2019

A venture of RREAF Holdings and iintoo Investments has taken over management of the active investment portfolio of RealtyShares, a San Francisco commercial real estate crowdfunding company that stopped taking new investments late last year. The deal also includes the company's database of more than 88,000 investors.

Va. Investor Teams with New York Life to Acquire $1Bln of Apartments by 2022

Friday, 10 May 2019

Jefferson Apartment Group, a McLean, Va., investor, is teaming with New York Life Real Estate Investors to buy apartment properties in major and secondary markets in the Eastern United States. The venture, which already is under contract to buy its first property, expects to invest about $1 billion in the multifamily sector by 2022.

Starwood Property Writes Down Value of Mall Portfolio That Backs CMBS Debt

Thursday, 09 May 2019

The Greenwich, Conn., REIT has sharply written down the value of its stake in a portfolio of four malls with about 2.8 million square feet in four states. It made a $69 million write-down on its interest in the portfolio, which it now carries on its balance sheet at a value of $70.6 million. The properties serve as collateral for $686.4 million of securitized debt that matures in November.

Fortress Seen Buying $78Mln Soured Loan on Ariz. Resort at Par

Wednesday, 08 May 2019

The investment manager is said to have purchased, at par value, the $78 million CMBS loan against the 575-room JW Marriott Starr Pass Resort & Spa in Tucson, Ariz. The deal would resolve a loan that's been in special servicing since 2010. The resort's operations have rebounded in recent years.

New York REIT Lines Up $1.04Bln of Financing Against Hotel Portfolio

Tuesday, 07 May 2019

Hospitality Investors Trust Inc. has lined up $1.04 billion of financing against a portfolio of 92 hotels. The financing, which matures in November 2021, but has three extension options, is locked out from prepayment until May 2020. Proceeds were used to repay maturing debt against the portfolio, as well as reduce the balance of an existing term loan.

Park Hotels to Buy Chesapeake Lodging in $2.7Bln Deal

Monday, 06 May 2019

The deal will bolster Park's exposure to large coastal cities such as Boston, Miami, Los Angeles, San Diego and San Francisco. It expects to sell five hotels by the time the Chesapeake acquisition closes in the fourth quarter, leaving the combined company with 66 properties and 35,390 rooms in 17 states and Washington, D.C.

Boston Properties Venture Lines Up $255Mln Loan for New Marriott HQ in Bethesda, Md.

Friday, 03 May 2019

A venture that includes the Boston REIT and the Bernstein Cos. has secured $255 million of construction financing for the development of Marriott International's new headquarters in Bethesda, Md. PNC Bank provided the loan, which comes with a four-term year and a pair of one-year extension options. The loan carries a rate pegged to Libor plus 125 basis points.

UDR Paying $108.5Mln for Suburban Philadelphia Apartment Property

Thursday, 02 May 2019

The Highlands Ranch, Colo., REIT is buying the 313-unit Park Square Apartments in King of Prussia, Pa., from a venture of CornerstoneTracy of Villanova, Pa., and Bentley Homes of West Chester, Pa. The property opened last year. Its sale is expected to close by the end of next month.

Owner of Post Office Properties Forming First-of-its-Kind REIT

Wednesday, 01 May 2019

Andrew Spodek, a longtime investor in properties leased to the United States Postal Service, is taking 271 such properties public through a REIT, Postal Realty Trust Inc. The Cedarhurst, N.Y., investor's plan is to function as an aggregator, buying additional properties leased to the postal service. The sector is highly fragmented, with some 16,383 owners, some of whom own only one property each.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

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CMBS 2.0 Spreads

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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

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    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%...
     
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  • 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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