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

Wednesday, 01 May 2019

Owner of Post Office Properties Forming First-of-its-Kind REIT

Andrew Spodek, a longtime investor in properties leased to the United States Postal Service, is taking 271 such properties public through a REIT, Postal Realty Trust Inc. The Cedarhurst, N.Y., investor's plan is to function as an aggregator, buying additional properties leased to the postal service. The sector is highly fragmented, with some 16,383 owners, some of whom own only one property each.

Commercial Real Estate Direct Staff Report

Andrew Spodek, a longtime investor in properties leased to the United States Postal Service, is taking 271 such properties public through a REIT, Postal Realty Trust Inc.

The Cedarhurst, N.Y., investor is looking to raise up to $120.8 million through the company's initial public offering. It will start life with a portfolio of 271 properties with 871,843 square feet in 41 states. Its plan is to operate like an aggregator, buying additional properties leased to the postal service and using shares in an affiliated operating partnership as currency.

Spodek owns interests in 190 of those properties through Nationwide Postal Management Inc., which he founded in 2004. The remainder are owned by members of Spodek's family. The company also will manage another 404 properties that Nationwide Postal operates on behalf of Spodek and his family. It'll have options to buy up to 255 of those.

The postal-service property business is highly fragmented, with what Postal Realty said was 16,383 owners of USPS properties. The agency itself owns 8,362 properties with 192.8 million sf and leases another 23,147 with 79 million sf. A total of 64 percent of all owners own only one property each, which average only 8,626 sf each.

While the volume of letters delivered by the USPS has...





weekly-call-to-action

“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

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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
warehouse-backstage