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

Rialto Reaches $500Mln Capital Mark for Latest Debt-Investment Fund

Friday, 11 October 2019

Rialto Capital Management is well on its way to raising its latest debt-investment fund. The Miami investment manager so far has raised $500 million for the vehicle, Rialto Real Estate Fund IV - Debt LP. It would be a follow-up to Fund III - Debt, through which $1.1 billion was raised three years ago.

KKR Dominates All CMBS Risk Retainers So Far This Year

Thursday, 10 October 2019

KKR Real Estate Credit has been absolutely dominating the business of retaining the risk pieces of CMBS transactions. It's retained the horizontal risk classes of 10 deals totaling $613.8 million, thanks to its dominance in the conduit world. Well behind it, with $309.29 million of volume, is Rialto Capital Advisors.

Citigroup Lends $73Mln to Facilitate Purchase of Washington, D.C.'s Watergate Office Building

Wednesday, 09 October 2019

Citigroup has provided $73 million of financing to help fund Seligman & Associates Inc.'s acquisition of the 214,508-square-foot Watergate office building in Washington, D.C. Seligman, a Southfield, Mich., investor, bought the property for $101.2 million, or $472/sf, from Rockwood Capital.

Cortland Sees Renovating Half the Portfolio Assumed Through Pure Acquisition

Tuesday, 08 October 2019

Cortland, which recently completed its $1.2 billion acquisition of Pure Multi-Family REIT, giving it 22 properties with 7,085 units in five Southwestern markets, expects to put about a dozen of the properties it assumed through a comprehensive renovation plan. It's also evaluating the $540 million of mortgage debt it assumed as part of its purchase. Some loans might get replaced.

 

Rockpoint Pays $806Mln for Boston Office; Gets Financing from Wells Fargo

Monday, 07 October 2019

Rockpoint Group has paid $806 million, or $733/sf, for the 1.1 million-square-foot office building at 100 Summer St. in downtown Boston. It financed its purchase with a $470 million mortgage provided by Wells Fargo Bank. The building is across from 99 Summer, which Rockpoint had purchased four years ago.

Rialto Capital Continues Conduit B-Piece Dominance; KKR Tops All Risk Retainers

Friday, 04 October 2019

Rialto Capital Advisors bought the B-pieces of four CMBS conduit transactions during the third quarter, accounting for nearly one-third of the new-issue B-piece market. But KKR Real Estate Finance Trust remains the most active investor in conduits' horizontal risk slices. It invested $523.8 million in seven conduit deals. That's nearly double the $270.6 million that its nearest rival, Rialto, invested.

Greystone Hires Team of Seasoned Execs to Build CMBS B-Piece Operation

Thursday, 03 October 2019

Greystone is beefing up its CMBS chops by hiring a team of seasoned commercial mortgage professionals to build a B-piece investing business and build out its special servicing capabilities. CMBS lenders are expected to increase their share of the multifamily lending market, creating a unique opportunity for lenders like Greystone that focus on that sector.

Goldman Sachs Takes Lead in CMBS Loan Contributor Ranking

Wednesday, 02 October 2019

Goldman Sachs contributed $1.9 billion of loans to CMBS deals, a mix of conduits and single-borrower transactions, during the third quarter. It edged out Wells Fargo Bank, which contributed $1.8 billion. That was enough to allow it to edge out Citigroup among loan contributors to CMBS so far this year.

Heavy Week of CMBS Issuance Brings 3Q Volume to $18.2Bln

Tuesday, 01 October 2019

A flurry of six private-label CMBS deals totaling $4.4 billion priced during the third quarter's last seven days, bringing issuance for the three-month period to $18.2 billion. That's 3.3 percent more than what had priced during the same period a year ago and brings issuance for the year so far to $57.5 billion, just slightly behind last year's issuance pace.

Monday, 30 September 2019

Affiliates of a New Jersey investor, Seth Levine, have defaulted on 40 Freddie Mac loans totaling $105.4 million. The group, operating as affiliates of Norse Holdings, has effectively abandoned the properties, most with fewer than 50 units each. All but two of the loans against them have been securitized through Freddie small-balance deals.

Bank of China Lends $105Mln Against Manhattan Office Property

Friday, 27 September 2019

Bank of China has provided $105 million of financing against the 121,059-square-foot office building at 287 Park Ave. South in Manhattan. The building was acquired five years ago by CL Investment Group, which originally had planned to redevelop it into residential condominiums. It aborted that plan and instead renovated the historic building and leased it to a co-working company.

Recently Opened Philadelphia Apartment Property Hits Sales Market

Thursday, 26 September 2019

Alterra Property Group is offering for sale the 141-unit LVL 4125 apartment property in Philadelphia's University City neighborhood. The Philadelphia developer, which only recently completed the property, has hired CBRE to market it. The property already is 98 percent leased.

Venture Pays $635Mln for Boston's 75 State St. Office Building

Wednesday, 25 September 2019

A venture of Rockpoint Group and DivcoWest Real Estate Services has paid $635 million, or $577/sf, for the 1.1 million-square-foot office building at 75 State St. in Boston. It has assumed a $310 million loan that MetLife had provided four years ago.

Hertz Group Seeks IPO, Aims for Tel Aviv Stock Market

Tuesday, 24 September 2019

Hertz Group Realty Trust Inc., which owns 71 office buildings with 19.5 million square feet in 24 cities across the country, is taking its operation public. But it's not listing its common shares on any exchange in the United States. Instead, it's going public in Israel.

Monday, 23 September 2019

M&T Bank has provided $66 million of financing against the 176-room Hotel Hendricks in midtown Manhattan. The loan was used to retire $65 million of construction debt that the bank had provided three years ago. Fortuna Realty Group of New York owns the property, which opened in June.

Rialto Reaches $500Mln Capital Mark for Latest Debt-Investment Fund

Friday, 11 October 2019

Rialto Capital Management is well on its way to raising its latest debt-investment fund. The Miami investment manager so far has raised $500 million for the vehicle, Rialto Real Estate Fund IV - Debt LP. It would be a follow-up to Fund III - Debt, through which $1.1 billion was raised three years ago.

KKR Dominates All CMBS Risk Retainers So Far This Year

Thursday, 10 October 2019

KKR Real Estate Credit has been absolutely dominating the business of retaining the risk pieces of CMBS transactions. It's retained the horizontal risk classes of 10 deals totaling $613.8 million, thanks to its dominance in the conduit world. Well behind it, with $309.29 million of volume, is Rialto Capital Advisors.

Citigroup Lends $73Mln to Facilitate Purchase of Washington, D.C.'s Watergate Office Building

Wednesday, 09 October 2019

Citigroup has provided $73 million of financing to help fund Seligman & Associates Inc.'s acquisition of the 214,508-square-foot Watergate office building in Washington, D.C. Seligman, a Southfield, Mich., investor, bought the property for $101.2 million, or $472/sf, from Rockwood Capital.

Cortland Sees Renovating Half the Portfolio Assumed Through Pure Acquisition

Tuesday, 08 October 2019

Cortland, which recently completed its $1.2 billion acquisition of Pure Multi-Family REIT, giving it 22 properties with 7,085 units in five Southwestern markets, expects to put about a dozen of the properties it assumed through a comprehensive renovation plan. It's also evaluating the $540 million of mortgage debt it assumed as part of its purchase. Some loans might get replaced.

 

Rockpoint Pays $806Mln for Boston Office; Gets Financing from Wells Fargo

Monday, 07 October 2019

Rockpoint Group has paid $806 million, or $733/sf, for the 1.1 million-square-foot office building at 100 Summer St. in downtown Boston. It financed its purchase with a $470 million mortgage provided by Wells Fargo Bank. The building is across from 99 Summer, which Rockpoint had purchased four years ago.

Rialto Capital Continues Conduit B-Piece Dominance; KKR Tops All Risk Retainers

Friday, 04 October 2019

Rialto Capital Advisors bought the B-pieces of four CMBS conduit transactions during the third quarter, accounting for nearly one-third of the new-issue B-piece market. But KKR Real Estate Finance Trust remains the most active investor in conduits' horizontal risk slices. It invested $523.8 million in seven conduit deals. That's nearly double the $270.6 million that its nearest rival, Rialto, invested.

Greystone Hires Team of Seasoned Execs to Build CMBS B-Piece Operation

Thursday, 03 October 2019

Greystone is beefing up its CMBS chops by hiring a team of seasoned commercial mortgage professionals to build a B-piece investing business and build out its special servicing capabilities. CMBS lenders are expected to increase their share of the multifamily lending market, creating a unique opportunity for lenders like Greystone that focus on that sector.

Goldman Sachs Takes Lead in CMBS Loan Contributor Ranking

Wednesday, 02 October 2019

Goldman Sachs contributed $1.9 billion of loans to CMBS deals, a mix of conduits and single-borrower transactions, during the third quarter. It edged out Wells Fargo Bank, which contributed $1.8 billion. That was enough to allow it to edge out Citigroup among loan contributors to CMBS so far this year.

Heavy Week of CMBS Issuance Brings 3Q Volume to $18.2Bln

Tuesday, 01 October 2019

A flurry of six private-label CMBS deals totaling $4.4 billion priced during the third quarter's last seven days, bringing issuance for the three-month period to $18.2 billion. That's 3.3 percent more than what had priced during the same period a year ago and brings issuance for the year so far to $57.5 billion, just slightly behind last year's issuance pace.

Bank of China Lends $105Mln Against Manhattan Office Property

Friday, 27 September 2019

Bank of China has provided $105 million of financing against the 121,059-square-foot office building at 287 Park Ave. South in Manhattan. The building was acquired five years ago by CL Investment Group, which originally had planned to redevelop it into residential condominiums. It aborted that plan and instead renovated the historic building and leased it to a co-working company.

Recently Opened Philadelphia Apartment Property Hits Sales Market

Thursday, 26 September 2019

Alterra Property Group is offering for sale the 141-unit LVL 4125 apartment property in Philadelphia's University City neighborhood. The Philadelphia developer, which only recently completed the property, has hired CBRE to market it. The property already is 98 percent leased.

Venture Pays $635Mln for Boston's 75 State St. Office Building

Wednesday, 25 September 2019

A venture of Rockpoint Group and DivcoWest Real Estate Services has paid $635 million, or $577/sf, for the 1.1 million-square-foot office building at 75 State St. in Boston. It has assumed a $310 million loan that MetLife had provided four years ago.

Hertz Group Seeks IPO, Aims for Tel Aviv Stock Market

Tuesday, 24 September 2019

Hertz Group Realty Trust Inc., which owns 71 office buildings with 19.5 million square feet in 24 cities across the country, is taking its operation public. But it's not listing its common shares on any exchange in the United States. Instead, it's going public in Israel.

Admiral Capital Pursuing Core-Plus Office Properties in Suburban Markets

Friday, 20 September 2019

Admiral Capital Group, a San Antonio investment manager led by former National Basketball Association star David Robinson, is shifting its focus to pursue primarily core-plus deals rather than value-add opportunities. It's targeting properties in suburban U.S. markets that are at least 75 percent occupied, are newer or have been renovated recently and have tenants signed to long-term leases.

Apollo Global Lends $250Mln Against 533-Unit Apartment Property in Manhattan

Thursday, 19 September 2019

Apollo Global Management has provided $250 million of financing against the 533-unit apartment property at 20 Broad St. in lower Manhattan. The loan allowed the property's owner, Metro Loft Management, to retire $187 million of construction financing that was provided two years ago.

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

 

 

 

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