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

Friday, 24 July 2020

Ashford Gets Payment Deferral on $907Mln of Debt, But Faces Loss of 9 Hotels to Mezz Lenders

Ashford Hospitality Trust Inc. has negotiated the modification of $907 million of financing against a portfolio of 19 hotels with 4,900 rooms. A large chunk of that financing was securitized two years ago. But the Dallas REIT is losing nine other hotels to mezzanine lenders. It stopped making interest payments on its $4.1 billion of mortgage debt in April.

Commercial Real Estate Direct Staff Report

Ashford Hospitality Trust Inc. has negotiated the modification of $907 million of financing against a portfolio of 19 hotels with 4,900 rooms.

A $720.8 million senior portion of that financing is securitized through Banc of America Merrill Lynch Large Loan Trust, 2018-ASHF. The remaining debt is comprised of two mezzanine loans that were originated by Barclays Bank and Morgan Stanley.

The loan, along with other debt against Ashford-owned hotels, had transferred to special servicer Wells Fargo Bank in April, when the Dallas REIT decided to halt payments of interest and principal against most of the $4.1 billion of mortgage debt it carried as the coronavirus pandemic had dealt a crushing blow on its properties' performance.

Interest payments on the debt against the 19 properties has been deferred from May through October. And to fund operating expenses at the properties, Ashford has been allowed to tap into a reserve designed to cover the cost of furniture, fixtures and equipment and capital improvements, as well as another that covers property-improvement program costs. The company then will have to repay any deferred amounts over the following 12 months. During the...





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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

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    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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