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

Thursday, 01 March 2018

SL Green Agrees to Sell Brooklyn, N.Y., Development Site; Plans Additional Sales

The Manhattan REIT is selling a development site in Brooklyn, N.Y., that it owns through a venture, for $115 million and is eyeing bringing other properties that it views as being mature to market as well. Those might include the six-building Reckson Executive Park in Rye Brook, N.Y., that it had assumed through its 2007 purchase of Reckson Associates Realty Corp.

Commercial Real Estate Direct Staff Report

SL Green Realty Corp. has agreed to sell another property and plans on using the proceeds to continue its stock repurchase program.

A venture of SL Green, Kushner Cos. and LIVWRK is selling a three-acre development site in Brooklyn, N.Y., for $115 million. SL Green has a 95 percent stake in the venture.

The deal is expected to close by the end of the month. RFR Realty of New York is the buyer, according to Bloomberg.

The venture paid $72.5 million for the site, at 175-225 Third St., in 2014.

SL Green will use net proceeds from the sale, which it estimates at $70 million, to buy back stock.

Since the company began its stock repurchase program in August 2016, it has bought back $1.19 billion of stock. It plans on buying another $310 million of its shares.

This year, the company intends on selling mature assets that include the six-building Reckson Executive Park, with 540,000 sf in Rye Brook, N.Y., and the 178,000-sf buildings at 115-117 Stevens Ave. in Valhalla, N.Y., as well as value-add properties it owns through ventures.

SL...





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