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

CBRE Writes $72.5Mln Fannie Loan Against Boston Apartment Property

Monday, 06 July 2020

CBRE has originated $72.5 million of Fannie Mae financing against Hub25, a 278-unit apartment property in Boston. The loan allowed the owner, Qianlong Property Development, to retire securitized debt against the complex.

KKR Keeps Perch Atop Ranking of CMBS B-Piece Buyers, Retainers of Risk

Thursday, 02 July 2020

KKR Real Estate Credit Opportunity Partners retained its spot at the top of a ranking of CMBS B-piece buyers for the first half of the year, with a nearly 23 percent share of the market. It also is the top ranked retainer of risk in CMBS deals, having kept bonds with a face value of $294.55 million.

2Q Sees $9Bln of CMBS Issuance; Weakest Quarter in Eight Years

Wednesday, 01 July 2020

The second quarter saw only $9 billion of domestic, private-label CMBS issuance, the lowest quarterly total since the first three months of 2012, when the sector was just pulling itself out of the post-Global Financial Crisis funk. JPMorgan Securities jumped to the top of a ranking of bookrunners, with a hefty 21.3 percent share of the market.

Volume of CMBS Delinquencies Increases 44 Percent in June to $54.29Bln

Wednesday, 01 July 2020

The volume of CMBS loans that were classified as being more than 30-days late last month jumped by more than 44 percent to $54.29 billion, according to Trepp LLC. That's equivalent to 10.32 percent of the entire $525.97 billion universe. But the increase pales in comparison with the nearly 225 percent spike in delinquency volume in May. It also falls short of the record delinquency rate of 10.34 percent posted in July 2012.

MIT Study Sees Lack of Liquidity Driving Huge Drops in Property Pricing

Tuesday, 30 June 2020

Property prices could drop by at least 10.2 percent as a result of the pullback in investor demand stemming from the coronavirus pandemic, according to a study by the Massachusetts Institute of Technology's Center for Real Estate. Retail properties will be hardest hit. The study determined pricing based on its historical relationship with liquidity.

Watermark Lodging Warns of Remaining 'Going Concern'

Monday, 29 June 2020

Watermark Lodging Trust Inc. has warned that it has "substantial doubt" about its ability to "continue as a going concern." The Chicago REIT, which owns 32 hotels with 4,420 rooms, has been hit hard by the coronavirus pandemic. If it's unable to negotiate payment deferral agreements on some of its $2 billion of mortgage debt, it said it might be forced to sell or give up on certain properties.

Greystar Pays $52.5Mln for Suburban Boston Apartments

Friday, 26 June 2020

Greystar Real Estate Partners has paid $52.5 million, or $320,122/unit, for the 164-unit Bell Marlborough apartment property in the Boston suburb of Marlborough, Mass. It bought the property from Bell Partners and financed the purchase with a $39 million Freddie Mac loan.

Namdar Buys New Mexico Mall for $19.8Mln, Spells $37.8Mln Loss to CMBS Deal

Thursday, 25 June 2020

The Mesilla Valley Mall in Las Cruces, N.M., has been sold for $19.8 million to Namdar Realty Group, making it the first property in New Mexico for the Great Neck, N.Y., mall owner. The sale resulted in a $37.8 million loss to the CMBS deal that had held a $54 million loan against 372,483 square feet at the 607,086-sf shopping center.

Property Sales Volume Plunges in May to Lowest Level in Decade

Wednesday, 24 June 2020

Only $9.8 billion of properties changed hands last month - the lowest volume for a May in a decade - according to Real Capital Analytics, as the coronavirus pandemic has driven a widening gap between what investors are willing to pay for properties and what sellers are inclined to take.

Sculptor Capital Raises $2.6Bln for Latest Opportunity Fund

Tuesday, 23 June 2020

Sculptor Capital Management, the former Och-Ziff Capital Management, has raised $2.6 billion of investor commitments for its latest opportunistic real estate investment fund. The vehicle, Sculptor Real Estate Fund IV LP, is a successor to Fund III, through which the investment manager had raised $1.5 billion in a capital raising effort launched in 2014.

Apartment Rents Under Leases Signed Last Month Dropped 5 Percent from Last Year

Monday, 22 June 2020

Rents for new apartment leases with terms of 8 to 14 months that were signed in May fell 5 percent from a year ago, according to MRI Software. Its data are based on actual leases signed at about 1 million units managed using its software and reflects a greater softening than previous data had shown.

Structured Tax-Deferred Exchange Market Sees Sharp Pullback in Equity Raising

Friday, 19 June 2020

A total of $1.04 billion of capital-raising took place in the structured tax-deferred exchange market during the first quarter. That would have put 2020 on a $4 billion run rate, making it the most active year since Mountain Dell Consulting LLC started tracking the market in 2002. But capital-raising volumes have plunged in lockstep with the coronavirus, and this year is now expected to see up to $2.2 billion of volume.

Developer of Apartments in Opportunity Zones Shifts to Acquisitions

Friday, 19 June 2020

Banyan Residential, a Los Angeles investment firm formed last year to develop apartments in opportunity zones, is now pursuing existing properties to buy as construction financing has become harder to obtain.

More CMBS Loans Against Regional Malls Transfer to Special Servicing

Thursday, 18 June 2020

The coronavirus pandemic continues to hammer the retail mall sector, as 21 large CMBS loans totaling $4.1 billion recently transferred to special servicing. The transfers shouldn't be surprising as many malls across the country have been shuttered for more than two months.

2 CMBS Conduit Deals Launch on Heels of Well-Received Transaction

Wednesday, 17 June 2020

A pair of CMBS conduit transactions have been launched, after investors last Friday rewarded an $807.82 million deal with the tightest spreads since before the coronavirus pandemic took hold. One of the two deals has a nearly 10 percent exposure to the Bellagio Hotel and Casino in Las Vegas that's net leased to MGM Resorts International.

CBRE Writes $72.5Mln Fannie Loan Against Boston Apartment Property

Monday, 06 July 2020

CBRE has originated $72.5 million of Fannie Mae financing against Hub25, a 278-unit apartment property in Boston. The loan allowed the owner, Qianlong Property Development, to retire securitized debt against the complex.

KKR Keeps Perch Atop Ranking of CMBS B-Piece Buyers, Retainers of Risk

Thursday, 02 July 2020

KKR Real Estate Credit Opportunity Partners retained its spot at the top of a ranking of CMBS B-piece buyers for the first half of the year, with a nearly 23 percent share of the market. It also is the top ranked retainer of risk in CMBS deals, having kept bonds with a face value of $294.55 million.

2Q Sees $9Bln of CMBS Issuance; Weakest Quarter in Eight Years

Wednesday, 01 July 2020

The second quarter saw only $9 billion of domestic, private-label CMBS issuance, the lowest quarterly total since the first three months of 2012, when the sector was just pulling itself out of the post-Global Financial Crisis funk. JPMorgan Securities jumped to the top of a ranking of bookrunners, with a hefty 21.3 percent share of the market.

Volume of CMBS Delinquencies Increases 44 Percent in June to $54.29Bln

Wednesday, 01 July 2020

The volume of CMBS loans that were classified as being more than 30-days late last month jumped by more than 44 percent to $54.29 billion, according to Trepp LLC. That's equivalent to 10.32 percent of the entire $525.97 billion universe. But the increase pales in comparison with the nearly 225 percent spike in delinquency volume in May. It also falls short of the record delinquency rate of 10.34 percent posted in July 2012.

MIT Study Sees Lack of Liquidity Driving Huge Drops in Property Pricing

Tuesday, 30 June 2020

Property prices could drop by at least 10.2 percent as a result of the pullback in investor demand stemming from the coronavirus pandemic, according to a study by the Massachusetts Institute of Technology's Center for Real Estate. Retail properties will be hardest hit. The study determined pricing based on its historical relationship with liquidity.

Watermark Lodging Warns of Remaining 'Going Concern'

Monday, 29 June 2020

Watermark Lodging Trust Inc. has warned that it has "substantial doubt" about its ability to "continue as a going concern." The Chicago REIT, which owns 32 hotels with 4,420 rooms, has been hit hard by the coronavirus pandemic. If it's unable to negotiate payment deferral agreements on some of its $2 billion of mortgage debt, it said it might be forced to sell or give up on certain properties.

Greystar Pays $52.5Mln for Suburban Boston Apartments

Friday, 26 June 2020

Greystar Real Estate Partners has paid $52.5 million, or $320,122/unit, for the 164-unit Bell Marlborough apartment property in the Boston suburb of Marlborough, Mass. It bought the property from Bell Partners and financed the purchase with a $39 million Freddie Mac loan.

Namdar Buys New Mexico Mall for $19.8Mln, Spells $37.8Mln Loss to CMBS Deal

Thursday, 25 June 2020

The Mesilla Valley Mall in Las Cruces, N.M., has been sold for $19.8 million to Namdar Realty Group, making it the first property in New Mexico for the Great Neck, N.Y., mall owner. The sale resulted in a $37.8 million loss to the CMBS deal that had held a $54 million loan against 372,483 square feet at the 607,086-sf shopping center.

Property Sales Volume Plunges in May to Lowest Level in Decade

Wednesday, 24 June 2020

Only $9.8 billion of properties changed hands last month - the lowest volume for a May in a decade - according to Real Capital Analytics, as the coronavirus pandemic has driven a widening gap between what investors are willing to pay for properties and what sellers are inclined to take.

Sculptor Capital Raises $2.6Bln for Latest Opportunity Fund

Tuesday, 23 June 2020

Sculptor Capital Management, the former Och-Ziff Capital Management, has raised $2.6 billion of investor commitments for its latest opportunistic real estate investment fund. The vehicle, Sculptor Real Estate Fund IV LP, is a successor to Fund III, through which the investment manager had raised $1.5 billion in a capital raising effort launched in 2014.

Apartment Rents Under Leases Signed Last Month Dropped 5 Percent from Last Year

Monday, 22 June 2020

Rents for new apartment leases with terms of 8 to 14 months that were signed in May fell 5 percent from a year ago, according to MRI Software. Its data are based on actual leases signed at about 1 million units managed using its software and reflects a greater softening than previous data had shown.

Structured Tax-Deferred Exchange Market Sees Sharp Pullback in Equity Raising

Friday, 19 June 2020

A total of $1.04 billion of capital-raising took place in the structured tax-deferred exchange market during the first quarter. That would have put 2020 on a $4 billion run rate, making it the most active year since Mountain Dell Consulting LLC started tracking the market in 2002. But capital-raising volumes have plunged in lockstep with the coronavirus, and this year is now expected to see up to $2.2 billion of volume.

Developer of Apartments in Opportunity Zones Shifts to Acquisitions

Friday, 19 June 2020

Banyan Residential, a Los Angeles investment firm formed last year to develop apartments in opportunity zones, is now pursuing existing properties to buy as construction financing has become harder to obtain.

More CMBS Loans Against Regional Malls Transfer to Special Servicing

Thursday, 18 June 2020

The coronavirus pandemic continues to hammer the retail mall sector, as 21 large CMBS loans totaling $4.1 billion recently transferred to special servicing. The transfers shouldn't be surprising as many malls across the country have been shuttered for more than two months.

2 CMBS Conduit Deals Launch on Heels of Well-Received Transaction

Wednesday, 17 June 2020

A pair of CMBS conduit transactions have been launched, after investors last Friday rewarded an $807.82 million deal with the tightest spreads since before the coronavirus pandemic took hold. One of the two deals has a nearly 10 percent exposure to the Bellagio Hotel and Casino in Las Vegas that's net leased to MGM Resorts International.

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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