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

Thursday, 19 October 2017

Starwood Capital Launches Non-Traded REIT

Starwood Capital Group is following in the footsteps of other large institutional investors by targeting retail investors with its first non-traded REIT, furthering the sector's evolution. The company, Starwood Real Estate Income Trust Inc., has filed to raise up to $5 billion that it would invest in stabilized commercial properties and certain debt instruments.

Commercial Real Estate Direct Staff Report

Starwood Capital Group is following in the footsteps of other large institutional investors by targeting retail investors with its first non-traded REIT, furthering the sector's evolution.

The Greenwich, Conn., company, which has $55 billion of assets under management, is launching Starwood Real Estate Income Trust Inc., which will invest in stabilized apartment, office, hotel, industrial, retail and other specialized properties, as well as debt instruments such as senior, subordinate and mezzanine loans, preferred shares in public REITs and CMBS.

Starwood's foray into the business comes 14 months after Blackstone Group launched Blackstone Real Estate Income Trust Inc., which, like Starwood's vehicle, has a perpetual life, meaning it's not planning to ever list its shares or liquidate its holdings.

Traditional non-traded REITs have been structured to have finite lives, meaning they would either list their shares, merge with another entity or sell their assets at a certain point in time in order to provide their investors with liquidity. Those also typically sold their shares for a flat price, generally $10.

Starwood Real Estate Income Trust, like Blackstone's entry, will allow its investors to redeem their shares monthly, subject to certain restrictions. It also initially will sell shares for $20 each, but the company, which is selling shares through a Starwood affiliate, will shift to a net-asset value, or NAV, pricing model after it has raised $150 million. Every month, BNY Mellon, the company's fund administrator, will determine the NAV of its holdings, based on a quarterly assessment conducted by Altus Group.

Starwood, meanwhile, has committed to invest $5 million in the company's shares. Its aim is to pay dividends on a monthly basis.

As of July, Blackstone Real Estate Income Trust had already raised more than $1 billion...





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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 - 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

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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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