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

Wednesday, 08 May 2019

Fortress Seen Buying $78Mln Soured Loan on Ariz. Resort at Par

The investment manager is said to have purchased, at par value, the $78 million CMBS loan against the 575-room JW Marriott Starr Pass Resort & Spa in Tucson, Ariz. The deal would resolve a loan that's been in special servicing since 2010. The resort's operations have rebounded in recent years.

Commercial Real Estate Direct Staff Report

Fortress Investment Group has acquired, at par, the $78 million CMBS loan against the 575-room JW Marriott Starr Pass Resort & Spa in Tucson, Ariz., resolving a loan that has been in special servicing for just more than nine years.

The loan comprises the senior component of a $165 million debt package against the 14-year-old resort, at 3800 West Starr Pass Blvd., which was constructed at a cost of more than $200 million. The property was developed by an affiliate of Signature Properties.

Even though the loan has been purchased at par value, the CMBS trust that holds it, Credit Suisse Commercial Mortgage Trust, 2006-TFL2, likely will take a hit. Because of the time the loan has spent in special servicing, it's accumulated more than $10.4 million of advances and an appraisal subordinate reduction amount, bringing its total exposure to...





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“The Weekly”

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  • 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

 

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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