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

Thursday, 13 July 2017

Iowa Shopping Mall Hits Sales Block

The Southern Hills Mall in Sioux City, Iowa, formally has been placed on the sales block. The property, which backs a $99.7 million CMBS loan, could see a price tag of perhaps $60 million to $65 million. Newmark Knight Frank, which has become the go-to broker for class-B malls, has been tapped to handle its sale.

The following story has been edited to reflect that KeyBank is special servicer for the loan against the mall.

Commercial Real Estate Direct Staff Report

The Southern Hills Mall in Sioux City, Iowa, formally has been placed on the sales block.

The 793,918-square-foot shopping mall is owned by Washington Prime Group, but its sale is being driven by KeyBank, special servicer of a $99.7 million loan against 571,468 sf of its non-anchor space. The loan, securitized through Banc of America Commercial Mortgage Trust, 2006-3, had transferred to special servicing more than a year ago as it was expected to default when it matured in June 2016.

KeyBank has hired Newmark Knight Frank to sell the property, which was constructed in 1980 and last renovated in 2007. It's been operated by a receiver since late last year. The thinking is that it should sell for a price at or above the property's $62.5 million appraised value.

While the property's loan is troubled, the mall isn't - outside of being heavily overleveraged.

It's the only regional mall within a 75-mile radius. As such, it's remained relatively...


“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

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





  • 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