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

Tuesday, 31 October 2017

Capital-Raising in Structured Tax-Deferred Exchange Market Seen Topping 2016

Capital-raising activity in the structured tax-deferred exchange market continues to increase. Through September, $1.48 billion of equity was raised through 102 offerings put together by 27 sponsors, according to Mountain Dell Consulting. That compares with $1.44 billion of equity raised for all of last year and $1.07 billion raised in 2015.

Commercial Real Estate Direct Staff Report

Capital-raising activity in the structured tax-deferred exchange market continues to increase.

Through September, $1.48 billion of equity was raised through 102 offerings put together by 27 sponsors, according to Mountain Dell Consulting, a Lehi, Utah, managing broker-dealer that's affiliated with Orchard Securities. That compares with $1.44 billion of equity raised for all of last year and $1.07 billion raised in 2015.

At its peak, in 2006, $3.65 billion of capital was raised, largely through tenant-in-common structures. Volumes plunged as the Great Financial Crisis took hold. In 2010, the industry's trough year, only $169.8 million was raised through 21 programs. Volumes have been steadily increasing since.

Section 1031 of the U.S. Internal Revenue Code allows taxes on gains from property sales to be deferred, as long as proceeds are reinvested in similar properties within a set period of time. Investors can sell one property and buy another to complete such a transaction. Or they...





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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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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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