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

Wednesday, 04 September 2019

CIM Real Estate Sells Single-Tenant Properties as It Aims Remake into Mortgage REIT

CIM Real Estate Finance Trust Inc. has agreed to sell a portfolio 454 single-tenant properties to Realty Income Corp. for $1.25 billion as it moves to reposition itself as a mortgage REIT. The company over the next year to two years will be selling off additional properties and plowing proceeds into loan originations and participations.

Commercial Real Estate Direct Staff Report

CIM Real Estate Finance Trust Inc. has agreed to sell a portfolio 454 single-tenant properties to Realty Income Corp. for $1.25 billion as it moves to reposition itself as a mortgage REIT.

The transaction could be the first of a number of asset sales that CIM, the former Cole Credit Property Trust IV Inc., orchestrates as it remakes itself into an owner of net-leased properties, as well as an originator of and investor in commercial real estate debt instruments, including CMBS.

Realty Income said the price it was paying for the portfolio, whose properties have a weighted average remaining lease term of 9.7 years, represented a capitalization rate of roughly 7 percent. It will assume $131 million of debt encumbering certain properties. Roughly 58 percent of the rental revenue the portfolio generates comes from tenants with investment-grade ratings.

CIM had acquired Cole Credit IV two years ago from VEREIT Inc., which sought to exit the non-traded REIT business. Cole Credit IV started raising capital in...





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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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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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