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

Tuesday, 29 January 2019

Bridge Loan on Jersey City Office Refinanced … With Another Bridge Loan

Late last year, Benefit Street Partners provided $18.5 million of bridge financing against the 106,727-square-foot office building at 26 Journal Square in Jersey City, N.J. That loan was used to take out an $18.2 million loan that Argentic Real Estate Finance had provided only two years earlier. The new loan provided a 55-basis-points savings in coupon to the sponsor.

Commercial Real Estate Direct Staff Report

Late last year, Benefit Street Partners provided $18.5 million of bridge financing against the 106,727-square-foot office building at 26 Journal Square in Jersey City, N.J.

The financing on its face wasn't unusual. The New York lender funded the loan by including it in a collateralized loan obligation, BSPRT, 2018-FL3. It has an initial two-year term and was structured with a $2.5 million reserve account to cover lease-up costs.

The 25-story building is owned by a venture of Kushner Cos. and KABR Real Estate Investment Partners of Ridgefield Park, N.J., which had bought it in 2016 for $23 million. Its plan was to upgrade the 92-year-old building, generally thought to be the first skyscraper in Jersey City.

Proceeds of the loan, which pays a rate pegged to Libor plus 375 basis points, were used to retire another bridge loan, provided two years earlier by Argentic Real Estate Finance, which initially had committed to provide $19.5 million of financing, but funded only $18.2 million. It had held back part of the financing to cover property improvement costs.

The Kushner/KABR team evidently had expected to sign WeWork to a lease for some 27,000 sf at the building. But that didn't happen.

That...





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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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  • US REITs Feeling Effects from Turmoil in Greece and China
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  • 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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