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

Wednesday, 30 October 2019

Equity Commonwealth Eyes Possible Sale of 4 Office Buildings

Equity Commonwealth, which took a hiatus from selling properties earlier this year, plans to put four of its seven office buildings, which have a total of 2.5 million square feet, up for sale by the end of the year. The properties it's identified as potential sales candidates are in Bellevue, Wash., Boston and Washington, D.C.

Commercial Real Estate Direct Staff Report

Equity Commonwealth, which took a hiatus from selling properties earlier this year, plans to put four of its seven office buildings, which have a total of 2.5 million square feet, up for sale by the end of the year.

The Chicago REIT was known as CommonWealth REIT until roughly five years ago, when investors in the company launched a proxy battle against the company's then management. A group of executives led by Sam Zell and David Helfand from Equity Group Investments then took over management and launched an effort to sell off small properties and non-office buildings. But as conditions in the investment-sales market continued to improve with ever-climbing prices, the company has sold additional properties.

Since the Zell group took over management, the company has sold 161 assets in 67 transactions, generating $6.9 billion of proceeds, with $812 million of that coming this year. It's used proceeds to retire $3.2 billion of debt and preferred stock, buy up $245 million of its common shares and pay $734 million of distributions to its shareholders. It still has $2.8 billion of cash on its balance sheet and less than $150 million of debt and preferred equity.

So far this year, it has leased 166,000 sf at its remaining properties. So, it's gearing up to bring to market:

- Tower 333, with...





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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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