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

Wednesday, 05 June 2019

Investor Pays $500Mln for 5 Suburban Baltimore Apartment Properties

Star Real Estate Ventures, a New York investment firm, has purchase a portfolio of five apartment properties with 2,566 units in the Baltimore suburbs. Lone Star Funds of Dallas was the seller. Securitized debt against the portfolio was defeased, or replaced by government securities.

Commercial Real Estate Direct Staff Report

Star Real Estate Ventures has paid $500 million, or $194,856/unit, for a portfolio of five apartment properties with 2,566 units in the Baltimore suburbs.

The New York investment firm bought the properties from Lone Star Funds, a Dallas investment manager that had assumed them in 2015 as part of its purchase of Home Properties Inc., a Rochester, N.Y., REIT.

CBRE arranged $320 million of Fannie Mae financing to help fund Star Real Estate's acquisition. The financing was written under the housing-finance agency's Green Rewards program, which is designed for properties undergoing upgrades that would improve their energy and water usage.

The properties previously had served as collateral for $262.5 million of Freddie Mac debt that was securitized through FREMF, 2016-KLH1. That loan had a coupon of Libor plus 215 basis points and was set to mature in November 2022. It was locked out from prepayment until August 2022, so it was defeased, or replaced by government securities.

Properties in the portfolio were on track to generate $35.7 million of net operating income last year, giving Star Real Estate's purchase price a capitalization rate of 7.1 percent.

The portfolio consists of:

- Charleston Place,...


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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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