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

Friday, 04 December 2009

Blank-Check Co. Converting to Retail REIT Plans $800Mln of Investments

By John Covaleski, Commercial Real Estate Direct Staff Writer

A blank-check company that raised $400 million in a public offering of its stock two years ago is deploying those proceeds to acquire real estate under a plan to convert to a REIT.

The company, Retail Opportunity Investments Corp. of Purchase, N.Y., expects to make up to $800 million of retail-property investments. It just reached an agreement on its first deal, agreeing to pay a Southern California partnership $18.1 million for a 95,000-square-foot shopping center at 15717 Downey Ave in Paramount, Calif., a Los Angeles suburb.

"The Paramount deal is the first of what we like to believe will be many acquisitions," said John Roche, chief financial officer. He further said the leverage the company expects to use in its real estate deals would give it total investment firepower of $700 million to $800 million.

Management of the company, formerly known as NRDC Acquisitions Corp., opted to convert to a REIT after it was unable to find suitable investments under the company's original plan as blank check, or special-purpose acquisitions company that was to acquire operating businesses in retail and other industries.

The company, which hopes to gain regulatory approval for...





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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

  • 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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