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

Monday, 03 February 2020

December Saw $2.5Bln of CMBS Loans Get Defeased, Taking 2019 Volume to $15.31Bln

The volume of CMBS loans that were defeased, or replaced by government securities, last year increased by 57 percent from the year before, to $15.31 billion. December was especially active, with 77 loans totaling $2.5 billion getting defeased.

Commercial Real Estate Direct Staff Report

The volume of CMBS loans that were defeased, or replaced by government securities, last year increased by 57 percent from the year before, to $15.31 billion.

December was especially active, with 77 loans totaling $2.5 billion getting defeased. A previous story had tabulated defeasance activity this year through November, which had totaled $12.79 billion.

In contrast, 2018 had $9.7 billion of defeasance activity, up 51 percent from the year before.

                                          Annual Defeasance Volume

Defeasance

                                                                    Source: Trepp LLC

Among the loans defeased in December was the $800 million mortgage against Century Plaza Towers, a 2.3 million-square-foot office property at Century Park East in Los Angeles. The interest-only loan, securitized through Morgan Stanley Capital I Trust, 2014-CPT, paid a coupon of 3.45 percent, requiring $27.6 million of annual interest payments. It wasn't set to mature until July 2021.

The property's owner, a venture of Hines Interests and JPMorgan Asset Managements' Strategic Property Fund, took advantage of the property's increased cash flow and lower interest rates to defease the loan with proceeds of a $1.2 billion mortgage - 50 percent larger than the loan it took out - provided by Deutshce Bank, Wells Fargo Bank and Morgan Stanley. That loan was securitized through seven transactions: CPT Mortgage Trust, 2019-CPT, which holds an $825 million piece of the loan; BANK, 2019-BNK23, with a $105 million piece; COMM, 2019-GC44, with a $75 million piece;...





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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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