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

Friday, 07 April 2017

$1.4Bln Raised Through Structured Tax-Deferred Vehicles in 2016; 1Q Sees $365.7Mln

A total of $1.4 billion of equity was raised on behalf of structured tax-deferred exchange vehicles last year, according to Mountain Dell Consulting. It provides further evidence that the structured exchange business, which had nearly become extinct between 2009 and 2012, continues to strengthen. Last year's volume was up nearly a third from the $1.1 billion that was raised in 2015.

Commercial Real Estate Direct Staff Report

A total of $1.4 billion of equity was raised on behalf of structured tax-deferred exchange vehicles last year, according to Mountain Dell Consulting. And during the first quarter, another $365.7 million was raised.

The data provides further evidence that the structured exchange business, which had nearly become extinct between 2009 and 2012, continues to strengthen. Last year's volume was up nearly a third from the $1.1 billion that was raised in 2015 and nearly double the $731.5 million that was raised in 2014.

But that's not surprising as the tax-deferred business always benefits from increasing property prices.

Section 1031 of the U.S. Internal Revenue Code allows taxes on gains from property sales to be deferred as long as proceeds are reinvested in like properties within a set period of time. Investors can sell one property and buy another, or they can sell a property and, through a structured vehicle, such as a Delaware Statutory Trust, or DST, or Tenant-in-Common vehicle, or TIC, buy stakes in a number of properties. As prices increase, property owners are more prone to...





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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 - 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

 

MOODY'S/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

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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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