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

2012 CMBS Conduit Deal Faces Tough Times as Mall Loans Take Hits

Thursday, 05 December 2019

WFRBS Commercial Mortgage Trust, 2012-C7, a $929.5 million conduit deal issued just seven years ago, could be heading into stormy waters. Its collateral pool has a 58.5 percent exposure to the retail sector and three of its largest loans are backed by regional malls that Morningstar Credit Ratings has flagged on its watchlist.

Conn. Asset Manager Launches Publicly Funded Opportunity Zone REIT

Wednesday, 04 December 2019

Belpointe Cos., a Greenwich, Conn., family office that earlier this year launched a REIT that would invest in properties in opportunity zones, so far has raised $13.4 million for the vehicle, Belpointe REIT Inc., which has a $50 million equity target. The company would be the first publicly registered vehicle, funded by retail investors, that's investing in opportunity zone properties.

Barclays, Citi, Aimco Lend $1.78Bln Against San Francisco's Parkmerced

Tuesday, 03 December 2019

Barclays Capital, Citibank and an affiliate of Apartment Investment and Management Co. have provided $1.78 billion of financing for the massive Parkmerced apartment complex in San Francisco. The financing would allow the 3,221-unit property to refinance $1.55 billion of debt, including a $450 million CMBS loan that was set to mature this month.

CMBS Trust Seen Taking Okla. Student-Housing Property

Monday, 02 December 2019

The student-housing property that backs a $37.7 million loan that's in special servicing has been appraised at a value of $36.3 million, which could spell losses for the CMBS trust that holds it. The property, some three miles from Oklahoma State University's main campus in Stillwater, Okla., is one of at least five owned by Aspen Heights Management, whose CMBS loans either are in special servicing or could soon transfer.

Libor Floors Show Value as Benchmark Rate Continues Decline

Wednesday, 27 November 2019

Libor floors lately have proven to be godsends for alternative lenders, providing them with downside protection as the benchmark one-month Libor rate has declined steadily since the end of last year. The rate, which had peaked at 2.52 percent at the end of last year, has steadily dropped and this week was 1.72 percent.

Kite Realty Refocusing Portfolio; Sells $502Mln of Non-Core Properties This Year

Tuesday, 26 November 2019

Kite Realty Group Trust has sold 20 shopping centers with about 2.8 million square feet so far this year for $502 million as it repositions its portfolio to focus on markets in the Southern and Western U.S., where it expects populations to grow in the coming years.

Net-Lease Investments on Record Pace for 2019

Monday, 25 November 2019

Net-lease investments saw a 30.2 percent increase to $20.9 billion in the third quarter when compared to last year, according to CBRE. Year-to-date volume, meanwhile, is up 24 percent from last year's pace, to $55.2 billion. Transaction activity indicates that full-year volume will top last year's $69.6 billion of volume.

JPMorgan Seen Lending $430Mln Against Philly's Centre Square

Friday, 22 November 2019

JPMorgan Chase Bank is said to be close to providing up to $430 million of mortgage financing against the 1.8 million-square-foot Centre Square office property at 1500 Market St. in Philadelphia. The loan would take out roughly $300 million of financing against the two-building property, including a $240 million CMBS loan that's been in special servicing since July.

Private-Label CMBS Volume for 2019 Seen Up 25 Percent; Marginal Growth on Tap for Next Year

Thursday, 21 November 2019

Domestic, private-label CMBS issuance so far this year totals $79 billion, 4 percent more than all of last year. Projections, meanwhile, call for the year to finish with anywhere from $86 billion to $95 billion, or up to 25 percent more than last year. It'll increase next year to $95 billion to $98 billion.

AIG Lends $150Mln Against Office, Retail Space at Manhattan's Puck Building

Thursday, 21 November 2019

AIG has provided $150 million of financing against the office and retail space at the Puck Building in Manhattan's SoHo neighborhood. The 15-year loan allowed the property's owner, Kushner Cos., to retire $95 million of debt that included an $81.1 million slice that was securitized eight years ago.

CMBS 2.0 Conduit Deal Gets Ratings Hits as Mall Loan Collateral Weakens

Wednesday, 20 November 2019

UBS-Barclays Commercial Mortgage Trust, 2012-C2, is taking it on the chin with downgrades from Fitch Ratings because of its hefty exposure to the shopping mall sector. Four mall loans, which account for 27.4 percent of the deal's $900.2 million remaining balance, have weakened as a result of store closures at their collateral properties.

JLL Writes $127.6Mln Freddie Loan to Help Fund Purchase of NYC-Area Apartments

Tuesday, 19 November 2019

JLL has originated a $127.6 million Freddie Mac loan to help fund Mill Creek Residential Trust's $180.3 million acquisition of the 504-unit Peaks of Nanuet apartment property in the New York City suburb of Nanuet, N.Y. The property was purchased from a venture of Harbor Group International and Azure Partners.

$680Mln CMBS Loan Against 4 Starwood Malls Reaches Final Maturity

Monday, 18 November 2019

The final maturity of a $680 million CMBS loan against a portfolio of four shopping malls owned by a Starwood Property Trust-led venture has passed, prompting the transfer of the loan to special servicing. The loan is securitized through a single-borrower transaction, Starwood Retail Property Trust, 2014-STAR.

$57.6Mln CMBS Loan Against Los Angeles Office Moves to Special Servicer

Friday, 15 November 2019

The $57.6 million CMBS loan against the 213,556-square-foot office building at 6100 Wilshire Blvd. in Los Angeles has transferred to special servicer Rialto Capital Advisors because of an expected non-monetary default. It was originated by UBS to facilitate the 16-story building's $76 million purchase by Citi Real Estate.

Kennedy Wilson Approaches Capital-Raising Target for Latest Fund

Thursday, 14 November 2019

Kennedy Wilson Inc. is well on its way to raising its latest value-add investment fund, which has a $750 million equity target. The Beverly Hills, Calif., investment manager so far has raised nearly $540 million of its target for the vehicle, Kennedy Wilson Real Estate Fund VI LP.

2012 CMBS Conduit Deal Faces Tough Times as Mall Loans Take Hits

Thursday, 05 December 2019

WFRBS Commercial Mortgage Trust, 2012-C7, a $929.5 million conduit deal issued just seven years ago, could be heading into stormy waters. Its collateral pool has a 58.5 percent exposure to the retail sector and three of its largest loans are backed by regional malls that Morningstar Credit Ratings has flagged on its watchlist.

Conn. Asset Manager Launches Publicly Funded Opportunity Zone REIT

Wednesday, 04 December 2019

Belpointe Cos., a Greenwich, Conn., family office that earlier this year launched a REIT that would invest in properties in opportunity zones, so far has raised $13.4 million for the vehicle, Belpointe REIT Inc., which has a $50 million equity target. The company would be the first publicly registered vehicle, funded by retail investors, that's investing in opportunity zone properties.

Barclays, Citi, Aimco Lend $1.78Bln Against San Francisco's Parkmerced

Tuesday, 03 December 2019

Barclays Capital, Citibank and an affiliate of Apartment Investment and Management Co. have provided $1.78 billion of financing for the massive Parkmerced apartment complex in San Francisco. The financing would allow the 3,221-unit property to refinance $1.55 billion of debt, including a $450 million CMBS loan that was set to mature this month.

CMBS Trust Seen Taking Okla. Student-Housing Property

Monday, 02 December 2019

The student-housing property that backs a $37.7 million loan that's in special servicing has been appraised at a value of $36.3 million, which could spell losses for the CMBS trust that holds it. The property, some three miles from Oklahoma State University's main campus in Stillwater, Okla., is one of at least five owned by Aspen Heights Management, whose CMBS loans either are in special servicing or could soon transfer.

Libor Floors Show Value as Benchmark Rate Continues Decline

Wednesday, 27 November 2019

Libor floors lately have proven to be godsends for alternative lenders, providing them with downside protection as the benchmark one-month Libor rate has declined steadily since the end of last year. The rate, which had peaked at 2.52 percent at the end of last year, has steadily dropped and this week was 1.72 percent.

Kite Realty Refocusing Portfolio; Sells $502Mln of Non-Core Properties This Year

Tuesday, 26 November 2019

Kite Realty Group Trust has sold 20 shopping centers with about 2.8 million square feet so far this year for $502 million as it repositions its portfolio to focus on markets in the Southern and Western U.S., where it expects populations to grow in the coming years.

Net-Lease Investments on Record Pace for 2019

Monday, 25 November 2019

Net-lease investments saw a 30.2 percent increase to $20.9 billion in the third quarter when compared to last year, according to CBRE. Year-to-date volume, meanwhile, is up 24 percent from last year's pace, to $55.2 billion. Transaction activity indicates that full-year volume will top last year's $69.6 billion of volume.

JPMorgan Seen Lending $430Mln Against Philly's Centre Square

Friday, 22 November 2019

JPMorgan Chase Bank is said to be close to providing up to $430 million of mortgage financing against the 1.8 million-square-foot Centre Square office property at 1500 Market St. in Philadelphia. The loan would take out roughly $300 million of financing against the two-building property, including a $240 million CMBS loan that's been in special servicing since July.

Private-Label CMBS Volume for 2019 Seen Up 25 Percent; Marginal Growth on Tap for Next Year

Thursday, 21 November 2019

Domestic, private-label CMBS issuance so far this year totals $79 billion, 4 percent more than all of last year. Projections, meanwhile, call for the year to finish with anywhere from $86 billion to $95 billion, or up to 25 percent more than last year. It'll increase next year to $95 billion to $98 billion.

AIG Lends $150Mln Against Office, Retail Space at Manhattan's Puck Building

Thursday, 21 November 2019

AIG has provided $150 million of financing against the office and retail space at the Puck Building in Manhattan's SoHo neighborhood. The 15-year loan allowed the property's owner, Kushner Cos., to retire $95 million of debt that included an $81.1 million slice that was securitized eight years ago.

CMBS 2.0 Conduit Deal Gets Ratings Hits as Mall Loan Collateral Weakens

Wednesday, 20 November 2019

UBS-Barclays Commercial Mortgage Trust, 2012-C2, is taking it on the chin with downgrades from Fitch Ratings because of its hefty exposure to the shopping mall sector. Four mall loans, which account for 27.4 percent of the deal's $900.2 million remaining balance, have weakened as a result of store closures at their collateral properties.

JLL Writes $127.6Mln Freddie Loan to Help Fund Purchase of NYC-Area Apartments

Tuesday, 19 November 2019

JLL has originated a $127.6 million Freddie Mac loan to help fund Mill Creek Residential Trust's $180.3 million acquisition of the 504-unit Peaks of Nanuet apartment property in the New York City suburb of Nanuet, N.Y. The property was purchased from a venture of Harbor Group International and Azure Partners.

$680Mln CMBS Loan Against 4 Starwood Malls Reaches Final Maturity

Monday, 18 November 2019

The final maturity of a $680 million CMBS loan against a portfolio of four shopping malls owned by a Starwood Property Trust-led venture has passed, prompting the transfer of the loan to special servicing. The loan is securitized through a single-borrower transaction, Starwood Retail Property Trust, 2014-STAR.

$57.6Mln CMBS Loan Against Los Angeles Office Moves to Special Servicer

Friday, 15 November 2019

The $57.6 million CMBS loan against the 213,556-square-foot office building at 6100 Wilshire Blvd. in Los Angeles has transferred to special servicer Rialto Capital Advisors because of an expected non-monetary default. It was originated by UBS to facilitate the 16-story building's $76 million purchase by Citi Real Estate.

Kennedy Wilson Approaches Capital-Raising Target for Latest Fund

Thursday, 14 November 2019

Kennedy Wilson Inc. is well on its way to raising its latest value-add investment fund, which has a $750 million equity target. The Beverly Hills, Calif., investment manager so far has raised nearly $540 million of its target for the vehicle, Kennedy Wilson Real Estate Fund VI LP.

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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
warehouse-backstage