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

Friday, 22 May 2009

Four Lightstone Malls Offered With Assumable Debt

By John Covaleski, Commercial Real Estate Direct Staff Writer

Four regional malls, with a combined 1.9 million square feet, that are owned by Lightstone Group and are in receivership, have been put up for sale.

Lightstone Group, a Lakewood, N.J., investor, had acquired the four properties, along with the West Manchester Mall in York, Pa., in 2004 from Pennsylvania REIT for $110.7 million. They serve as collateral for $73.2 million that is securitized through JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CIBC15, and support another $18.2 million of mezzanine and secondary debt.

Jones Lang LaSalle, the court-appointed receiver for the malls, is marketing the portfolio, which consists of: Martinsburg Mall with 552,212 sf in Martinsburg, West Va.; the 507,836-sf Shenango Valley Mall in Hermitage, Pa.; the 476,778-sf Mount Berry Square Mall in Rome, Ga., and Bradley Square Mall, with 406,845 sf in Cleveland, Tenn.

The company credits the CMBS deal's special servicer, JER Partners, with making the malls' debt assumable by moving the properties into receivership rather than taking over the properties. Lightstone had agreed to hand the properties over to JER in an evident deed in-lieu of foreclosure. But JER didn't take the keys. Instead, it placed the properties in receivership.

That tactic saved the properties financing. The debt, which could be assumed by a buyer, will likely bolster JLL's sales efforts.

"The assumable debt makes this offering much more attractive, since it's obviously so hard to get other types of financing," said Greg Maloney, chief executive of JLL's retail group. He also noted that receivership often "is the only way to keep the mortgage alive" on properties whose owners default on...





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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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