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

Multifamily REITs Shore Up Balance Sheets to Cope with Coronavirus Impact

Friday, 03 April 2020

A number of the country's multifamily REITs made moves this week to shore up their balance sheets as the coronavirus, or Covid-19, pandemic hurtles into April. Apartment properties are expected to perform well in the long run, but skyrocketing unemployment levels could very well lead to a loss or temporary reduction of rental revenue.

KKR Top Buyer of CMBS Conduit B Pieces, Top Risk Retainer in 1Q

Thursday, 02 April 2020

KKR Real Estate Credit Opportunity Partners took down the three B-pieces of deals totaling $3.35 billion, or 30.7 percent of the quarter's conduit issuance, making it the most active buyer of B-pieces. It also retained the horizontal risk pieces of four deals - three conduits and a single-borrower transaction - totaling $202.2 million.

Broadshore-Led Venture Pursues Multifamily Investments in Southeast, Western U.S.

Thursday, 02 April 2020

Broadshore Capital Partners, the former Lowe Enterprises Investors, has formed a venture with an institutional investor to make up to $900 million of equity and debt investments in multifamily properties in the Southeastern and Western United States.

Solid Issuance in January, February Pushes 1Q CMBS Deal Volume to $21.55Bln

Wednesday, 01 April 2020

Thanks to the relatively hefty volume in January and February, CMBS issuance for the first quarter totaled $21.55 billion, up nearly 31 percent from last year's anemic total. Citigroup took top honors among bookrunners, while taking second place in a ranking of loan contributors. JPMorgan Chase Bank took first place in that ranking.

PGIM Lends $130Mln Against Manhattan Apartment Property

Tuesday, 31 March 2020

PGIM Real Estate Finance has provided $130 million of financing against the 387-unit Capitol apartment property in Manhattan. The loan allowed the building's owner, JPMorgan Asset Management, to retire a similar amount of debt that HSBC Bank had provided in 2012.

New York Coworking Sector Seen Taking Virus-Related Hit; Could Prosper in Recovery

Monday, 30 March 2020

The New York City coworking industry will be tested by the coronavirus outbreak as tenants decide not to renew their short-term leases, but few expect the sector's demise. The industry very well could come out of the current crisis in good shape as space users look for greater flexibility and allow more of their employees to work from home.

Ashford Hospitality, Braemar Tap Adviser to Seek Modifications of $5.1Bln of Debt

Friday, 27 March 2020

Ashford Hospitality Trust Inc. and Braemar Hotels & Resorts Inc., which own 130 hotels with 28,664 rooms, are making efforts to modify the terms of $5.1 billion of debt against their properties. The two REITs are managed by Ashford Inc. of Dallas, which also operates Lismore Capital, a debt-placement advisory unit that will handle modification requests.

Ryman Re-Assesses Proposed $275Mln Purchase of Block 21 Complex in Austin, Texas

Thursday, 26 March 2020

Ryman Hospitality Properties Inc. is re-assessing its proposed $275 million purchase of the Block 21 mixed-use complex in Austin, Texas. The property's 251-room W Austin hotel has remained open, but its 86,575-square-foot entertainment venue, Austin City Limits Live at the Moody Theater, is closed as a result of the coronavirus pandemic.

Advisory Shop Offers to Help Negotiate CMBS Loan Workouts in Bulk

Wednesday, 25 March 2020

Hart Advisors Group, which helps borrowers negotiate modifications of their troubled CMBS loans, is proactively looking to address what many expect will be a deluge of mortgage delinquencies.

Starwood Venture Pays $614.3Mln for Boston's 60 State St. Office Building

Tuesday, 24 March 2020

A venture led by Starwood Real Estate Income Trust Inc. has paid $614.3 million, or $674/sf, for the 911,394-square-foot office building at 60 State St. in Boston. It funded its purchase with $421.5 million of financing provided by MetLife and PacLife.

Market Turmoil Prompts Issuers to Yank Proposed CMBS Deals from Market

Monday, 23 March 2020

At least two CMBS transactions, each backed by loans against hotel properties, have been pulled from the market, thanks to the beating that property sector has taken over the past few weeks. Meanwhile, hotel loan delinquency rates are expected to increase.

Monday, 23 March 2020

A group of lenders led by JPMorgan Chase Bank has provided $155 million of financing against the 250-unit Hudson 36 apartment property at 515 West 36th St. in Manhattan.

MBA Makes Series of Proposals Designed to Help Small Businesses and Other Renters

Friday, 20 March 2020

 

The Mortgage Bankers Association has put together a series of proposals designed to help small businesses and property renters weather the economic impact of the coronavirus pandemic. Among other things, it has proposed expanding the Small Business Administration disaster-loan program and providing rental assistance vouchers to tenants in apartment properties.

 

Wells Fargo Lends $350Mln Against Eagle Lofts Apartment Property in Queens, N.Y.

Thursday, 19 March 2020

Wells Fargo Bank has provided $350 million of financing against the 790-unit Eagle Lofts apartment property in Queens, N.Y. Construction of the property, which was completed two years ago by Rockrose Development, was financed by Bank of America.

Manhattan Office Buildings Faced Big Tax Hikes Since 2016

Wednesday, 18 March 2020

The 10 Manhattan office buildings with the greatest property tax liability face a total tax bill of $526.7 million this year, according to Metro Manhattan Office Space Inc.That's a weighted average increase of 17.9 percent from 2016, when those same 10 buildings paid $448.5 million in property taxes.

Multifamily REITs Shore Up Balance Sheets to Cope with Coronavirus Impact

Friday, 03 April 2020

A number of the country's multifamily REITs made moves this week to shore up their balance sheets as the coronavirus, or Covid-19, pandemic hurtles into April. Apartment properties are expected to perform well in the long run, but skyrocketing unemployment levels could very well lead to a loss or temporary reduction of rental revenue.

KKR Top Buyer of CMBS Conduit B Pieces, Top Risk Retainer in 1Q

Thursday, 02 April 2020

KKR Real Estate Credit Opportunity Partners took down the three B-pieces of deals totaling $3.35 billion, or 30.7 percent of the quarter's conduit issuance, making it the most active buyer of B-pieces. It also retained the horizontal risk pieces of four deals - three conduits and a single-borrower transaction - totaling $202.2 million.

Broadshore-Led Venture Pursues Multifamily Investments in Southeast, Western U.S.

Thursday, 02 April 2020

Broadshore Capital Partners, the former Lowe Enterprises Investors, has formed a venture with an institutional investor to make up to $900 million of equity and debt investments in multifamily properties in the Southeastern and Western United States.

Solid Issuance in January, February Pushes 1Q CMBS Deal Volume to $21.55Bln

Wednesday, 01 April 2020

Thanks to the relatively hefty volume in January and February, CMBS issuance for the first quarter totaled $21.55 billion, up nearly 31 percent from last year's anemic total. Citigroup took top honors among bookrunners, while taking second place in a ranking of loan contributors. JPMorgan Chase Bank took first place in that ranking.

PGIM Lends $130Mln Against Manhattan Apartment Property

Tuesday, 31 March 2020

PGIM Real Estate Finance has provided $130 million of financing against the 387-unit Capitol apartment property in Manhattan. The loan allowed the building's owner, JPMorgan Asset Management, to retire a similar amount of debt that HSBC Bank had provided in 2012.

New York Coworking Sector Seen Taking Virus-Related Hit; Could Prosper in Recovery

Monday, 30 March 2020

The New York City coworking industry will be tested by the coronavirus outbreak as tenants decide not to renew their short-term leases, but few expect the sector's demise. The industry very well could come out of the current crisis in good shape as space users look for greater flexibility and allow more of their employees to work from home.

Ashford Hospitality, Braemar Tap Adviser to Seek Modifications of $5.1Bln of Debt

Friday, 27 March 2020

Ashford Hospitality Trust Inc. and Braemar Hotels & Resorts Inc., which own 130 hotels with 28,664 rooms, are making efforts to modify the terms of $5.1 billion of debt against their properties. The two REITs are managed by Ashford Inc. of Dallas, which also operates Lismore Capital, a debt-placement advisory unit that will handle modification requests.

Ryman Re-Assesses Proposed $275Mln Purchase of Block 21 Complex in Austin, Texas

Thursday, 26 March 2020

Ryman Hospitality Properties Inc. is re-assessing its proposed $275 million purchase of the Block 21 mixed-use complex in Austin, Texas. The property's 251-room W Austin hotel has remained open, but its 86,575-square-foot entertainment venue, Austin City Limits Live at the Moody Theater, is closed as a result of the coronavirus pandemic.

Advisory Shop Offers to Help Negotiate CMBS Loan Workouts in Bulk

Wednesday, 25 March 2020

Hart Advisors Group, which helps borrowers negotiate modifications of their troubled CMBS loans, is proactively looking to address what many expect will be a deluge of mortgage delinquencies.

Starwood Venture Pays $614.3Mln for Boston's 60 State St. Office Building

Tuesday, 24 March 2020

A venture led by Starwood Real Estate Income Trust Inc. has paid $614.3 million, or $674/sf, for the 911,394-square-foot office building at 60 State St. in Boston. It funded its purchase with $421.5 million of financing provided by MetLife and PacLife.

Market Turmoil Prompts Issuers to Yank Proposed CMBS Deals from Market

Monday, 23 March 2020

At least two CMBS transactions, each backed by loans against hotel properties, have been pulled from the market, thanks to the beating that property sector has taken over the past few weeks. Meanwhile, hotel loan delinquency rates are expected to increase.

MBA Makes Series of Proposals Designed to Help Small Businesses and Other Renters

Friday, 20 March 2020

 

The Mortgage Bankers Association has put together a series of proposals designed to help small businesses and property renters weather the economic impact of the coronavirus pandemic. Among other things, it has proposed expanding the Small Business Administration disaster-loan program and providing rental assistance vouchers to tenants in apartment properties.

 

Wells Fargo Lends $350Mln Against Eagle Lofts Apartment Property in Queens, N.Y.

Thursday, 19 March 2020

Wells Fargo Bank has provided $350 million of financing against the 790-unit Eagle Lofts apartment property in Queens, N.Y. Construction of the property, which was completed two years ago by Rockrose Development, was financed by Bank of America.

Manhattan Office Buildings Faced Big Tax Hikes Since 2016

Wednesday, 18 March 2020

The 10 Manhattan office buildings with the greatest property tax liability face a total tax bill of $526.7 million this year, according to Metro Manhattan Office Space Inc.That's a weighted average increase of 17.9 percent from 2016, when those same 10 buildings paid $448.5 million in property taxes.

Wells Fargo Lends $292Mln in Recap of Boston's 75-101 Federal St.

Tuesday, 17 March 2020

Wells Fargo Bank has provided $292 million of financing as part of the recapitalization of 75 and 101 Federal St., a two-building office property with 853,319 square feet in Boston. The deal included the sale of a 50 percent stake in the property to Carr Properties in a deal that valued the buildings at $485 million, or $568/sf.

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

  • 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
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