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

Wednesday, 01 August 2018

Equity Residential Ups Sales, Acquisitions Targets

The Chicago apartment REIT is moving back into Denver as part of a broader portfolio rejiggering that will involve the purchase of $700 million of properties this year and the sale of an equal amount. Among the properties that will be sold is one in Manhattan's West Side that should fetch more than $400 million.

Commercial Real Estate Direct Staff Report

Equity Residential has increased the volume of properties it expects to buy and sell this year. It's also moving back into the Denver market, from which it had exited just more than two years ago.

The Chicago apartment REIT expects it will make $700 million of acquisitions and a like amount of dispositions this year. That's up from its earlier projection of $500 million apiece. The revised number is driven by the opportunities it's found. It already has some $500 million of potential investments under contract or in due diligence.

Its trading activity continues an effort by the company to further diversify its portfolio of 303 properties with 78,399 units. For instance, it's reducing its exposure to Manhattan's West Side area by selling a property for what it says will be more than $400 million. The property it has under agreement of sale is tied to a tax benefit that has a short-term fuse - just the type that Equity Residential is looking to unload. As the benefit burns off, the company will face...





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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

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • 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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