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

CMBS Issuance for Year Poised to Top $84Bln; Issuers Not Done Yet

Friday, 08 December 2017

Five CMBS transactions totaling $3.6 billion priced over the past five days and another four, totaling $2.3 billion, were launched, which would bring total issuance for the year so far to $84.3 billion. That would be 25.4 percent more volume than last year. Issuers aren't done yet and could very well float at least another $5 billion of bonds.

SEC Clarifies Accounting Rules on Sales Recognition of Certain CMBS

Thursday, 07 December 2017

The SEC has clarified that issuers of CMBS could continue treating the securitization of assets as sales, as opposed to financings, under generally accepted accounting principles, even when a third party buys its risk-retention classes. The regulator hasn't made a formal ruling, but provided guidance through the Securities Industry and Financial Markets Association.

JCR Capital Raises $142Mln in Six Months for Value-Add Lending Fund

Wednesday, 06 December 2017

JCR Capital Investment Corp., which started raising a value-add lending fund in June, already has raised $142 million for the vehicle, JCR Income Plus Fund IV. The fund, which will provide joint venture and preferred equity as well as mezzanine loans, becomes the third leg in the Denver investment manager's capital offerings. It already operates in the core and opportunistic sectors.

Former Stan Johnson Net-Lease Execs Launch Brokerage Platform

Tuesday, 05 December 2017

Two long-time players in the business of brokering the sale of net-leased properties have launched their own brokerage platform, Brokers+Engineers. The two, Camille Renshaw and Scott Scurich, aim to modernize the brokerage of net-leased properties by building a robust data set and analytics. They expect to broker $350 million of property sales in year one.

Monday, 04 December 2017

So far this year, REITs have issued a record-breaking $47.5 billion of unsecured notes - nearly a quarter more than they issued last year. And in three days last week, eight REITs priced $5 billion of notes, setting another record. Their driver: continued low interest rates and the fear that they'll increase.

Real Estate Execs' Confidence in Market Conditions Continues to Rise

Friday, 01 December 2017

Confidence from commercial real estate executives on the industry's current state and future prospects has increased slightly, according to the latest survey from the Real Estate Roundtable. But those executives have expressed some caution about cycle timing and tax-reform uncertainty.

Los Angeles Investor Prevails in Online Auction for Moreno Valley Mall in Calif.

Thursday, 30 November 2017

International Growth Properties has completed its purchase of the Moreno Valley Mall in California's Inland Empire. The Los Angeles investor was tops among more than 10 investors that competed at an online auction hosted on the RealInsight sales platform. It won the auction with an offer of $60.25 million and ponied up another 5 percent buyer's premium.

Korean Bank Lends $175Mln Against Chicago Office Building

Wednesday, 29 November 2017

Shinhan Bank of South Korea has provided $175 million of mortgage financing against 300 South Riverside Plaza, a 1.1 million-square-foot office building in Chicago's West Loop area. The building last year lost its main tenant, but most of the space it vacated since has been re-leased.

Iron Point Partners Raising Capital for Latest Real Estate Investment Fund

Tuesday, 28 November 2017

The Washington, D.C., investment manager, which was founded 10 years ago by a team of executives who previously were with the real estate investing operation of Robert M. Bass, so far has raised $61 million for Iron Point Real Estate Partners IV LP. Its predecessor fund had raised $750 million.

Kohan Retail Buys Colonial Park Mall in Harrisburg, Pa.

Monday, 27 November 2017

Kohan Retail Investment Group, perhaps the most active buyer of troubled shopping malls in the country, has purchased the Colonial Park Mall in Harrisburg, Pa. The Great Neck, N.Y., investment company bought the property for $15 million from Washington Prime Group, which had offered it through NKF Capital Markets. It plans to keep operating the property as a mall.

Select Income Eyes Spinning Off Industrial Properties

Wednesday, 22 November 2017

Select Income REIT, long frustrated that stock investors have improperly discounted its common shares, is spinning off what could be its most valuable assets - 266 industrial properties with 28.5 million square feet, mostly in Hawaii. The REIT, Industrial Logistics Properties Trust, would own just more than 40 percent of all the industrial space on Oahu.

As Congress Passes HVCRE Clarification, Regulators Devise New Loan Rule

Tuesday, 21 November 2017

Just as Congress was moving forward with a legislative proposal to clarify the definition of a high-volatility commercial real estate, or HVCRE loan, the three banking regulators unveiled a proposed rule that could make those efforts moot. They've proposed a new category of loans, high-volatility acquisition, development and construction loans, in an effort to eliminate the HVCRE rule's vagueness.

Non-Traded REITs Raised Only $782Mln in 3Q

Monday, 20 November 2017

Non-traded REITs raised only $782 million of equity during the third quarter, their weakest showing in at least 13 years, bringing the total raised so far this year to $3 billion. It's likely that capital-raising for the full year will fall well below last year's dismal $4.8 billion raised.

Kalikow's Gamma Real Estate Poised to Write $300Mln of Loans in 2017

Friday, 17 November 2017

Gamma Real Estate, the real estate investing arm of the Kalikow family, which stepped back into the alternative lending space four years ago, is poised to originate at least $300 million of loans this year. The company had pulled back from the lending business in 2008, but returned to it in 2013. It's originated nearly $1 billion of loans since then.

Proposed Rule May Decrease Chinese Investments in U.S. Properties

Thursday, 16 November 2017

China's economic planning agency has issued a draft rule that could lead to fewer Chinese companies investing in United States commercial properties. That would be on top of previous restrictions the Chinese government had placed on overseas property deals. Last year, the Chinese invested a record $19.2 billion in U.S. property, the most among foreign investors.

CMBS Issuance for Year Poised to Top $84Bln; Issuers Not Done Yet

Friday, 08 December 2017

Five CMBS transactions totaling $3.6 billion priced over the past five days and another four, totaling $2.3 billion, were launched, which would bring total issuance for the year so far to $84.3 billion. That would be 25.4 percent more volume than last year. Issuers aren't done yet and could very well float at least another $5 billion of bonds.

SEC Clarifies Accounting Rules on Sales Recognition of Certain CMBS

Thursday, 07 December 2017

The SEC has clarified that issuers of CMBS could continue treating the securitization of assets as sales, as opposed to financings, under generally accepted accounting principles, even when a third party buys its risk-retention classes. The regulator hasn't made a formal ruling, but provided guidance through the Securities Industry and Financial Markets Association.

JCR Capital Raises $142Mln in Six Months for Value-Add Lending Fund

Wednesday, 06 December 2017

JCR Capital Investment Corp., which started raising a value-add lending fund in June, already has raised $142 million for the vehicle, JCR Income Plus Fund IV. The fund, which will provide joint venture and preferred equity as well as mezzanine loans, becomes the third leg in the Denver investment manager's capital offerings. It already operates in the core and opportunistic sectors.

Former Stan Johnson Net-Lease Execs Launch Brokerage Platform

Tuesday, 05 December 2017

Two long-time players in the business of brokering the sale of net-leased properties have launched their own brokerage platform, Brokers+Engineers. The two, Camille Renshaw and Scott Scurich, aim to modernize the brokerage of net-leased properties by building a robust data set and analytics. They expect to broker $350 million of property sales in year one.

Real Estate Execs' Confidence in Market Conditions Continues to Rise

Friday, 01 December 2017

Confidence from commercial real estate executives on the industry's current state and future prospects has increased slightly, according to the latest survey from the Real Estate Roundtable. But those executives have expressed some caution about cycle timing and tax-reform uncertainty.

Los Angeles Investor Prevails in Online Auction for Moreno Valley Mall in Calif.

Thursday, 30 November 2017

International Growth Properties has completed its purchase of the Moreno Valley Mall in California's Inland Empire. The Los Angeles investor was tops among more than 10 investors that competed at an online auction hosted on the RealInsight sales platform. It won the auction with an offer of $60.25 million and ponied up another 5 percent buyer's premium.

Korean Bank Lends $175Mln Against Chicago Office Building

Wednesday, 29 November 2017

Shinhan Bank of South Korea has provided $175 million of mortgage financing against 300 South Riverside Plaza, a 1.1 million-square-foot office building in Chicago's West Loop area. The building last year lost its main tenant, but most of the space it vacated since has been re-leased.

Iron Point Partners Raising Capital for Latest Real Estate Investment Fund

Tuesday, 28 November 2017

The Washington, D.C., investment manager, which was founded 10 years ago by a team of executives who previously were with the real estate investing operation of Robert M. Bass, so far has raised $61 million for Iron Point Real Estate Partners IV LP. Its predecessor fund had raised $750 million.

Kohan Retail Buys Colonial Park Mall in Harrisburg, Pa.

Monday, 27 November 2017

Kohan Retail Investment Group, perhaps the most active buyer of troubled shopping malls in the country, has purchased the Colonial Park Mall in Harrisburg, Pa. The Great Neck, N.Y., investment company bought the property for $15 million from Washington Prime Group, which had offered it through NKF Capital Markets. It plans to keep operating the property as a mall.

Select Income Eyes Spinning Off Industrial Properties

Wednesday, 22 November 2017

Select Income REIT, long frustrated that stock investors have improperly discounted its common shares, is spinning off what could be its most valuable assets - 266 industrial properties with 28.5 million square feet, mostly in Hawaii. The REIT, Industrial Logistics Properties Trust, would own just more than 40 percent of all the industrial space on Oahu.

As Congress Passes HVCRE Clarification, Regulators Devise New Loan Rule

Tuesday, 21 November 2017

Just as Congress was moving forward with a legislative proposal to clarify the definition of a high-volatility commercial real estate, or HVCRE loan, the three banking regulators unveiled a proposed rule that could make those efforts moot. They've proposed a new category of loans, high-volatility acquisition, development and construction loans, in an effort to eliminate the HVCRE rule's vagueness.

Non-Traded REITs Raised Only $782Mln in 3Q

Monday, 20 November 2017

Non-traded REITs raised only $782 million of equity during the third quarter, their weakest showing in at least 13 years, bringing the total raised so far this year to $3 billion. It's likely that capital-raising for the full year will fall well below last year's dismal $4.8 billion raised.

Kalikow's Gamma Real Estate Poised to Write $300Mln of Loans in 2017

Friday, 17 November 2017

Gamma Real Estate, the real estate investing arm of the Kalikow family, which stepped back into the alternative lending space four years ago, is poised to originate at least $300 million of loans this year. The company had pulled back from the lending business in 2008, but returned to it in 2013. It's originated nearly $1 billion of loans since then.

Proposed Rule May Decrease Chinese Investments in U.S. Properties

Thursday, 16 November 2017

China's economic planning agency has issued a draft rule that could lead to fewer Chinese companies investing in United States commercial properties. That would be on top of previous restrictions the Chinese government had placed on overseas property deals. Last year, the Chinese invested a record $19.2 billion in U.S. property, the most among foreign investors.

New York Investor Launches Blind-Pool Offering Targeting Retail Investors

Wednesday, 15 November 2017

Mascia Development LLC, a New York real estate investor that had syndicated equity interests in properties to retail investors, is forming a company that will be capitalized by retail investors and would invest in office, retail and industrial properties in secondary and tertiary markets. The company would be similar to the non-traded REITs launched by more-established crowdfunding platforms.

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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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