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

Tuesday, 07 November 2017

Former Brixmor Chief Accumulating Neighborhood Shopping Centers

Michael Carroll, the former chief executive of Brixmor Property Group, who last year formed ShopOne Centers REIT Inc., has completed yet another opportunistic investment. His company, backed by Davidson Kempner Capital Management, last month bought Devonshire REIT Inc., giving it 46 retail centers. And since then, it's bought two others. It's taking advantage of a dearth of competition for select retail assets.

Commercial Real Estate Direct Staff Report

Michael Carroll, the former chief executive of Brixmor Property Group, who last year formed ShopOne Centers REIT Inc., has completed yet another opportunistic investment.

His company, which is backed financially by Davidson Kempner Capital Management, bought McKinley Crossroads, with 200,871 square feet in Corona, Calif., in Riverside County, some 50 miles southeast of downtown Los Angeles. It bought the property from Credit Suisse First Boston Mortgage Securities Corp., 2005-C6, which had held a $26.1 million mortgage against it.

The property, at 275 Teller St., faces Riverside Freeway, a busy highway that connects with Interstate 15. It previously was owned by a tenant-in-common group, but got in trouble following the Great Financial Crisis. Unable to invest additional capital for leasing commissions and tenant improvements, the group lost the property to foreclosure three years ago.

ShopOne bought the property for roughly $24.4 million, or $121.50/sf, which Carroll said was "way below replacement cost." The company already has made significant inroads in leasing the property's vacancies, having entered lease negotiations with three tenants that will take a combined 55,000 sf. Tenants include a Simply Fresh Market and 24-Hour Fitness.

That purchase comes on the heels of ShopOne's acquisition earlier this year of Conyers Commons, with 119,362 sf in the Atlanta suburb of Conyers, Ga. That property also was backed by CMBS debt, in this case, a $16 million loan securitized through Credit Suisse Mortgage Securities Corp., 2007-C2. It too had been in special servicing for years, having transferred to Torchlight Loan Services in August 2014. ShopOne paid roughly $14.4 million for the property in May.

Since then, it's invested capital in the 11-year-old property and reworked a number of leases, bringing it to full occupancy. The property is shadow anchored by a Publix grocery store and Target.

ShopOne now owns 48 properties with some 5 million sf. Its first deal was the purchase of Devonshire REIT Inc., a private REIT headquartered in Whitehouse, Ohio.

The company...


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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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





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