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

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.

Camden Property Sees Selling Another $600Mln of Properties This Year

Tuesday, 03 May 2016

 

Camden Property Trust, which last week completed the sale of its Las Vegas holdings for $630 million, expects to sell up to another $600 million of properties this year as it continues to upgrade its portfolio of apartment properties. It's looking to sell its older properties, which while enjoying substantial increases in income, require more attention than its newer properties.

Monday, 02 May 2016

Aareal Capital Corp. has provided $133 million of mortgage financing against the Park Square Building, a 495,708-square-foot office property in Boston's Back Bay area. The loan was used to retire $95 million of CMBS debt that became open to prepayment last month.

TIAA Lends $320Mln Against Kansas City Office, Retail Property

Friday, 29 April 2016

The 10-year loan, which pays a coupon of 3.88 percent, requires only interest payments for three years, after which it amortizes over a 30-year schedule. Country Club Plaza, with 1.27 million square feet, is owned by a venture of Taubman Centers Inc. and Macerich Co., which recently acquired it for $660 million, or about $519/sf.

Boston Properties Eyes Refinancing Debt Against Manhattan's GM Building

Thursday, 28 April 2016

The Boston REIT will soon be in the market to refinance the loan that is secured by the 1.8 million-square-foot office building at 767 Fifth Ave. in midtown Manhattan. The existing debt, a $1.3 billion senior loan and $306 million of mezzanine financing, comes due in October 2017. The 48-year-old property is 98.5 percent leased.

CMBS Issuers React to Improved Market Tone with 3 Conduit Deals

Wednesday, 27 April 2016

CMBS issuers have teed up three conduit deals in an effort to take advantage of market conditions that have become far more favorable in recent weeks. Spreads for newly issued conduit deals have improved substantially recently, while investor demand is said to have improved markedly.

American Campus Aims to Sell $600Mln of Student Properties This Year

Tuesday, 26 April 2016

American Campus Communities has begun the process of selling as much as $600 million of non-core properties this year. It's already sold two properties and will use proceeds to fund its sizable pipeline of developments. The expectation is that the properties that it's teeing up for sale will fetch prices resulting in cap rates of 6-6.25 percent.

Monday, 25 April 2016

A venture of Federal Capital Partners and Ross Cos. is offering for sale a portfolio of seven garden-style apartment properties with 2,895 units in the Maryland suburbs of Washington, D.C. The properties, in Prince George's County, are being offered through CBRE, which will take bids for individual properties or the portfolio in its entirety.

Bank of China Lends $310Mln for Construction of Cambridge, Mass., Lab/Office

Friday, 22 April 2016

The Bank of China has provided $310 million of construction financing for a 431,483-square-foot laboratory and office property that Alexandria Real Estate Equities Inc. is developing at 100 Binney St. in Cambridge, Mass. Part of the property already has been leased to Bristol-Myers Squibb Co.

Manhattan Office Building Teed Up for Sale

Thursday, 21 April 2016

The venture that owns 127 West 25th St., a 104,000-square-foot office building that's net leased to the Bowery Residents' Committee, is getting ready to list it for sale. It's in the process of selecting a broker. Part of the property serves as a homeless shelter under a city contract that runs through 2021.

KBS Sells Bank Branch Portfolio; Defeases $102.9Mln of CMBS Debt

Wednesday, 20 April 2016

KBS REIT Inc. has sold 61 bank-branch properties that it had inherited from the former Gramercy Capital Corp. for $139.6 million. The portfolio was sold to Pontus Net Lease Advisors of La Jolla, Calif. The transaction resulted in the defeasance of $102.9 million of CMBS debt, which comprises the remainder of the collateral pool for BSDB, 2005-AFR1.

Mass. Mall that Backed $76.7Mln CMBS Loan Hits Sales Market

Tuesday, 19 April 2016

CWCapital Asset Management is offering for sale the 732,101-square-foot Hanover Mall in Hanover, Mass., through NGKF Capital Markets. The buzz is that the property, at 1775 Washington St., could sell for as much as $40 million, which compares with a $28 million value pegged to it in a January appraisal.

Net-Leased Pro Aims to Raise Capital for REIT Through Mini-IPO

Monday, 18 April 2016

David Sobelman, co-founder of net-leased property specialist Calkain Cos., is aiming to raise $20 million through a mini-IPO for a REIT that would pursue net-leased properties. The REIT would be the first real estate company to take advantage of part of the four-year-old JOBS Act, whose aim was to facilitate raising capital from investors.

Friday, 15 April 2016

The Jersey City, N.J., REIT is continuing its massive repositioning plan and has tapped Cushman & Wakefield to offer for sale a portfolio of office properties in the Washington, D.C., suburbs of Greenbelt, Md., and Lanham, Md. The portfolio includes land parcels that can be developed into office and residential space.

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.

Camden Property Sees Selling Another $600Mln of Properties This Year

Tuesday, 03 May 2016

 

Camden Property Trust, which last week completed the sale of its Las Vegas holdings for $630 million, expects to sell up to another $600 million of properties this year as it continues to upgrade its portfolio of apartment properties. It's looking to sell its older properties, which while enjoying substantial increases in income, require more attention than its newer properties.

TIAA Lends $320Mln Against Kansas City Office, Retail Property

Friday, 29 April 2016

The 10-year loan, which pays a coupon of 3.88 percent, requires only interest payments for three years, after which it amortizes over a 30-year schedule. Country Club Plaza, with 1.27 million square feet, is owned by a venture of Taubman Centers Inc. and Macerich Co., which recently acquired it for $660 million, or about $519/sf.

Boston Properties Eyes Refinancing Debt Against Manhattan's GM Building

Thursday, 28 April 2016

The Boston REIT will soon be in the market to refinance the loan that is secured by the 1.8 million-square-foot office building at 767 Fifth Ave. in midtown Manhattan. The existing debt, a $1.3 billion senior loan and $306 million of mezzanine financing, comes due in October 2017. The 48-year-old property is 98.5 percent leased.

CMBS Issuers React to Improved Market Tone with 3 Conduit Deals

Wednesday, 27 April 2016

CMBS issuers have teed up three conduit deals in an effort to take advantage of market conditions that have become far more favorable in recent weeks. Spreads for newly issued conduit deals have improved substantially recently, while investor demand is said to have improved markedly.

American Campus Aims to Sell $600Mln of Student Properties This Year

Tuesday, 26 April 2016

American Campus Communities has begun the process of selling as much as $600 million of non-core properties this year. It's already sold two properties and will use proceeds to fund its sizable pipeline of developments. The expectation is that the properties that it's teeing up for sale will fetch prices resulting in cap rates of 6-6.25 percent.

Bank of China Lends $310Mln for Construction of Cambridge, Mass., Lab/Office

Friday, 22 April 2016

The Bank of China has provided $310 million of construction financing for a 431,483-square-foot laboratory and office property that Alexandria Real Estate Equities Inc. is developing at 100 Binney St. in Cambridge, Mass. Part of the property already has been leased to Bristol-Myers Squibb Co.

Manhattan Office Building Teed Up for Sale

Thursday, 21 April 2016

The venture that owns 127 West 25th St., a 104,000-square-foot office building that's net leased to the Bowery Residents' Committee, is getting ready to list it for sale. It's in the process of selecting a broker. Part of the property serves as a homeless shelter under a city contract that runs through 2021.

KBS Sells Bank Branch Portfolio; Defeases $102.9Mln of CMBS Debt

Wednesday, 20 April 2016

KBS REIT Inc. has sold 61 bank-branch properties that it had inherited from the former Gramercy Capital Corp. for $139.6 million. The portfolio was sold to Pontus Net Lease Advisors of La Jolla, Calif. The transaction resulted in the defeasance of $102.9 million of CMBS debt, which comprises the remainder of the collateral pool for BSDB, 2005-AFR1.

Mass. Mall that Backed $76.7Mln CMBS Loan Hits Sales Market

Tuesday, 19 April 2016

CWCapital Asset Management is offering for sale the 732,101-square-foot Hanover Mall in Hanover, Mass., through NGKF Capital Markets. The buzz is that the property, at 1775 Washington St., could sell for as much as $40 million, which compares with a $28 million value pegged to it in a January appraisal.

Net-Leased Pro Aims to Raise Capital for REIT Through Mini-IPO

Monday, 18 April 2016

David Sobelman, co-founder of net-leased property specialist Calkain Cos., is aiming to raise $20 million through a mini-IPO for a REIT that would pursue net-leased properties. The REIT would be the first real estate company to take advantage of part of the four-year-old JOBS Act, whose aim was to facilitate raising capital from investors.

CMBS Conduit Lenders Try Priming Originations; Slash Spreads

Thursday, 14 April 2016

CMBS conduit lenders, reacting to favorable market conditions, over the past couple of weeks have started aggressively moving to increase their loan origination activity. They've reduced their spreads - the premiums over benchmark rates that they use to determine loan coupons - by some 50 basis points in recent weeks to roughly 300 bps more than swaps.

ACORE Capital Sees Originating Another $4Bln Next Year

Wednesday, 13 April 2016

ACORE Capital, which recently lined up an additional capital commitment from its financial backer, will likely originate another $4 billion of financing over the next year or so. Thus far, it's funded or agreed to fund $2.9 billion. The company specializes in providing bridge loans against large properties in major markets.

N.J. Office That Backed $88Mln CMBS Loan Offered Through Auction

Tuesday, 12 April 2016

LNR Partners Inc. is offering for sale the Continental Plaza, a 673,930-square-foot office property in northern New Jersey that had served as collateral for $88 million of CMBS debt. The property at 401-433 Hackensack Ave. in Hackensack, N.J., could sell for about $55 million, or $82/sf, based on its existing cash flow.

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

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  • What Does Increased Construction Mean for Apartment REITs?
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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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