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

Thursday, 22 October 2009

NY Court Wallops StuyTown; CMBS to Get Clipped

Commercial Real Estate Direct Staff Report

The value of Manhattan's Stuyvesant Town and Peter Cooper Village apartment complex might have been dealt a fatal blow.

New York State's Court of Appeals has ruled that the property's current owner, a venture of Tishman Speyer Properties and BlackRock Realty, as well as its previous owner, Metropolitan Life Insurance Co., should not have been able to move individual units out of the city's rent-stabilization roster, thus allowing them to charge higher, market-rate rents.

The court said it did not consider whether its ruling should be applied retroactively, so it's not clear whether the number of units that are now generating market-rate rents will change.

The result is devastating, not only for the property's owner, which bought it for $5.4 billion in 2007, but for investors who hold bonds from the five CMBS deals that own $3 billion of senior debt on the property, which has a total of 11,227 units. Another $1.5 billion of mezzanine debt is also outstanding, much of which has already been written down sharply or to zero. Some of its holders include Gramercy Capital Corp., SL Green Realty Corp. and Hartford Financial.

Among those that made substantial equity investments in the property are Florida's State Board of Administration, which had a $250 million equity piece that it has written down to zero, and the California Public Employees' Retirement System, which put up about $500 million of the deal's $1 billion equity.

Realpoint in recent months had valued the property at $2.1 billion. But that value had assumed that the 4,440 units that...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners
Private-Label CMBS - FY2014
Inv Bank #Deals Bal $mln MktShr%
Deutsche Bank 27.1  23,479.37 26.3
JPMorgan 18.6  13,752.01 15.4
Wells Fargo 17.2  13,085.05 14.6
Goldman Sachs 9.0  7,896.25 8.8
Citigroup 9.1  7,526.97 8.4

 

 

MOODY'S/RCA CPPI

 

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Top Loan Contributors
Private-Label CMBS FY2014
Lender Vol $mln MktShr%
Deutsche Bank 14,005.13 16.0
JPMorgan 11,440.63 13.0
Wells Fargo 5,849.16 6.7
CCRE 5,750.69 6.6
Citigroup 5,604.13 6.4

 

 

 

REITCafe

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  • 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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