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

Tuesday, 06 August 2019

UDR on Track for At Least $950Mln of Apartment Buys This Year

The Highlands Ranch, Colo., REIT, which did not buy any apartment properties last year, is on track to invest at least $950 million this year in acquisitions. It so far has paid $742 million for eight properties with 2,361 units in seven states, and is under contract to acquire an Englewood, N.J., complex for $83.6 million in a deal that's slated to close next month.

Commercial Real Estate Direct Staff Report

UDR Inc., which did not buy any apartment properties last year, is on track to invest at least $950 million this year in acquisitions.

So far this year, the Highlands Ranch, Colo., REIT has paid $742 million for eight properties with 2,361 units in seven states. The company's portfolio currently totals 50,829 units, a 4 percent increase from the start of the year.

UDR raised $120 million during the first two quarters through an equity offering that it has used to acquire those properties. The REIT's stock price has increased 20.1 percent since the beginning of the year through this afternoon, to $46.10. The S&P 500, of which UDR is a member, has increased 14.5 percent during the same time period.

"There hasn't been a change in underwriting that's driven us to be more aggressive," said Joe Fisher, UDR's chief financial officer, on a conference call with analysts last week. "It's more so simply that we've become more active as our cost of equity has improved."

Meanwhile, the REIT is under contract to pay $83.6 million, or $451,892/unit, for the 185-unit One William apartment property in Englewood, N.J. It is buying the property, which is across the Hudson River from Manhattan, from a venture of BNE Real Estate Group of Livingston, N.J., GID of Boston and Sterling Properties, also of Livingston. The apartments opened last year.

And UDR has agreed to acquire the 70 percent stake it doesn't...





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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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  • 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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