Insurers Being Squeezed in Large-Loan Market
A few big life-insurance company lenders are lagging behind their expected origination pace for the year, which could prompt them to become more aggressive in pursuing long-term mortgages in coming months.Read more.
Goldman Signals CMBS Push by Hiring Strain
Goldman Sachs’ hiring of industry veteran Jon Strain is being viewed as a sign that the bank wants to boost its already-formidable presence in the commercial MBS market and position itself for the big wave of loan maturities that will hit over the next three years.Read more.
Hypo, Eurohypo Shop $1.5 Billion of Loans
Hypo Real Estate Capital and Eurohypo are separately putting about $1.5 billion of performing commercial mortgages up for sale, including a big chunk of senior debt on the Chrysler Building in Midtown Manhattan.Read more.
GreensLedge Eyes CLOs, Taps Deutsche Alum
GreensLedge Capital, a broker-dealer and structured-finance advisory shop, is seeking to become an active underwriter of collateralized loan obligations backed by commercial real estate debt.Read more.
4 CMBS Shops Share $1.2 Billion Mall Loan
A Turnberry Associates partnership has tapped four lenders — J.P. Morgan, Deutsche Bank, Morgan Stanley and Wells Fargo — to originate a $1.2 billion fixed-rate loan on Aventura Mall in suburban Miami.Read more.
CMBS Spreads Tighten Slightly as Yields Fall
Spreads on new commercial MBS issues narrowed only slightly this week, even as financial markets rallied in response to the Federal Reserve’s surprise announcement that it would keep its massive bond-buying program running full-tilt.Read more.
CIBC, Invesco Write Times Square Retail Loan
CIBC and Invesco Real Estate have written a roughly $200 million floating-rate debt package for SL Green Realty and investor Jeff Sutton on 51,000 square feet of retail space in the heart of Manhattan’s Times Square.Read more.
Pru Team Seeks to Refinance 11 Times Square
A Prudential Real Estate Investors partnership that owns the office building at 11 Times Square in Midtown Manhattan is seeking to refinance a $507 million loan that it was forced to modify a year ago.Read more.
Goldman Taps CBRE for Big Freddie Package
CBRE Capital Markets is originating about $1.1 billion of Freddie Mac loans to finance a Goldman Sachs partnership’s acquisition of a multi-family portfolio from Equity Residential Properties.Read more.
CMBS Spreads Hold Tight Amid Rising Supply
In a bullish sign for the commercial MBS market, the benchmark classes of two commercial MBS transactions priced yesterday at levels that matched the post-crash high achieved earlier this month.Read more.
Citi, BofA to Lead $1 Billion Supermarket Loan
Citigroup and Bank of America will co-lead a $1 billion loan backed by a portfolio of Albertsons supermarkets that a Cerberus Capital joint venture is acquiring as part of a larger deal with grocery operator Supervalu.Read more.
Insurers’ New Capital Rules Near Finish Line
After more than three years of work, regulators are close to approving a new formula for calculating how much capital insurers must hold to protect against possible losses in their commercial mortgages.Read more.
Pru Gets Breathing Room on 11 Times Square
A Prudential Real Estate Investors partnership has substantially paid down its $714 million construction loan on the office building at 11 Times Square in Manhattan in return for an extension of the maturity date.Read more.
Deutsche Backing Diamond District Project
Deutsche Bank is working to line up as much as $400 million of debt to finance an office building that Gary Barnett’s Extell Development has started constructing in Manhattan’s Diamond District.Read more.
JP Morgan Backs Hotel Play by Blackstone
J.P. Morgan has agreed to provide a $350 million floating-rate loan to finance Blackstone’s purchase of a mortgage on 13 high-quality but overleveraged hotels that it is angling to seize.Read more.
CMBS Buyers Weigh Special-Servicer Habits
As special servicers build up their track records for loan workouts and liquidations, secondary traders of commercial MBS are increasingly looking for patterns that might help them predict the fate of underlying loans.Read more.
How CMBS Shop Snagged Trophy Office Loan
When developer Sheldon Solow began his search for a $625 million mortgage on his office building at Nine West 57th Street in Midtown Manhattan, the assignment seemed tailor-made for an insurance company: Extremely low leverage on a trophy property in a premier city.Read more.
Rockpoint Scrambling to Refinance SF Hotel
As vulture investors circle, a Rockpoint Group partnership is negotiating with Wells Fargo, Blackstone and other players to line up enough capital to refinance an overleveraged hotel near Union Square in San Francisco.Read more.
S&P Ousts Duka as Head of CMBS Group
S&P has relieved managing director Barbara Duka of her duties as commercial MBS chief, continuing an overhaul of senior management that the rating agency kicked off several months ago.Read more.
S&P Falls Further Back in CMBS Ratings
S&P faces a long slog as it tries to rebuild its commercial MBS rating business, after falling to last place among agencies that rated the most common type of offerings last year.Read more.
Pru Faces Maturing Loan on 11 Times Square
A Prudential Real Estate Investors partnership is preparing to start negotiations with its lending syndicate about a maturing $714 million construction loan on the overleveraged office building at 11 Times Square in Midtown Manhattan.Read more.
Attendance Rise Seen for January Conference
Despite the second-half swoon that crushed profits and sapped the morale of commercial MBS pros, turnout at the CRE Finance Council’s 13th annual January conference is on track to slightly exceed the level at last winter’s event.Read more.
Demand Soft for First Pooled Floater in 4 Years
Deutsche Bank struggled this week to drum up enough buyers for the first multi-borrower securitization backed by floating-rate loans in almost four years, amid a weakening market and concerns about the deal’s heavy concentration of hotel loans.Read more.
Morgan-BofA Deal Kicks Off Issuance Wave
Morgan Stanley and Bank of America rolled out their latest commercial MBS offering this week in an uncertain market, where it may set pricing benchmarks for the year’s last flurry of issues.Read more.
New Markit Index May Solve Hedging Woes
Markit, which runs the CMBX index of credit-default swaps tied to commercial MBS, is close to rolling out a new index that could address a big problem for securitization shops: the difficulty of hedging warehoused commercial mortgages.Read more.
CMBS Spreads Blow Out in Softening Market
Amid weakening conditions in the financial markets, new-issue spreads blew out to the highest level of the year yesterday as Morgan Stanley and Bank of America priced a $1.2 billion multi-borrower offering.Read more.
Fortress Taps Deutsche for Loan on Sheffield
Deutsche Bank has originated a $125 million floating-rate loan on the unsold units at the Sheffield, the ill-fated Manhattan condominium-conversion property that Fortress Investment bought out of foreclosure in 2009.Read more.
Council Pushes ‘Reps & Warranties' Standard
The CRE Finance Council is poised to release a proposed standard for a key portion of securitization documents — the “representations and warranties” that lenders provide about the adequacy and accuracy of collateral-loan data.Read more.
Regulator Repackages $3.8 Billion of CMBS
The federal regulator of credit unions this week resecuritized $3.8 billion of high-grade commercial MBS that it inherited from two failed institutions - the first and only such transaction it expects to conduct.Read more.
$400 Million of Sour Hotel Loans on Block
LNR Partners and two other special servicers are jointly shopping more than $400 million of nonperforming hotel mortgages - the largest offering of distressed loans on a single property type since the market collapse.Read more.
Eurohypo Group Backs Douglas Emmett Deal
Douglas Emmett Inc. has lined up a commitment from a Eurohypo syndicate for a $400 million floating-rate loan backed partly by a large Hawaiian office complex that it acquired last month.Read more.
TIAA May Refi Securitized Loan on GGP Mall
TIAA-CREF, which holds as much as $89 million of subordinate debt on a suburban Seattle mall owned by a General Growth Properties partnership, is thinking about refinancing the property's $196.9 million securitized mortgage to protect its investment.Read more.
Lenders Chase Big Loan on NY Office Tower
A partnership between insurer AXA Equitable and J.P. Morgan Investment Management is seeking a loan of up to $375 million on the office building at 1285 Avenue of the Americas in Midtown Manhattan.Read more.
Spring Hill Seeking to Expand Broker Unit
Spring Hill Capital, which received its broker-dealer license from the Financial Industry Regulatory Authority on Wednesday, plans to hire up to 10 structured-finance specialists by yearend.Read more.
Rate of Loans in Special Servicing Nears 9%
The percentage of commercial MBS loans in special servicing climbed sharply to almost 9% last month, fueled largely by the transfer of the $3 billion loan on the Stuyvesant Town apartment complex in Manhattan.Read more.
House Bill Seen Choking Off CMBS Revival
A sweeping proposal by U.S. lawmakers to overhaul the regulatory framework for financial institutions could be the kiss of death for a revival of the commercial MBS market, market pros are warning.Read more.
BofA Eyes TALF, Mezz Financing for Fortress
Bank of America is seeking to arrange $650 million of financing on a portfolio controlled by Fortress Investment, part of which could be raised via a securitization eligible for the Federal Reserve's TALF program.Read more.
AREA, CIBC Teaming Up on Mortgage Fund
An Oct. 2 article, "AREA, CIBC Teaming Up on Mortgage Fund," misstated Richard Mack's title at AREA Property Partners. He is North America chief executive, not the firm's chairman.
First New-Issue TALF Deal Set for October
Developers Diversified Realty is on track to unveil the first commercial MBS transaction under the TALF program in mid-October, but two other potential issuers - Simon Property and Westfield - have dropped out of the picture.Read more.
Barclays Extends $2 Billion Crescent Loan
Barclays has granted a three-month extension on a $2 billion floating-rate loan that helped finance Morgan Stanley's ill-fated takeover of Crescent Real Estate Equities at the top of the market.Read more.
Substitute Lenders Sought for Xanadu Project
After several lenders balked at fulfilling commitments, a Colony Capital partnership is seeking up to $500 million of replacement funding to complete a giant entertainment and retail complex next to the Meadowlands sports complex in New Jersey.Read more.
High TALF Approval Rate Bolsters Market
The Federal Reserve's decision to approve applications for TALF loans on legacy bonds from 35 of 36 commercial MBS deals buoyed the market this week, undoing some of the upheaval caused by a shocking about-face by S&P.Read more.
Vornado, Macerich, Inland Mull TALF Deals
A June 26 article, "Vornado, Macerich, Inland Mull TALF Deals," cited talk in the market that Alexandria Real Estate Equities explored a TALF-eligible securitization, but discovered that the Federal Reserve was uncomfortable with the REIT's property niche: bio-medical research space. However, Alexandria subsequently said that it wasn't rebuffed by the Fed and that after making an initial inquiry it decided not to pursue a TALF deal because it determined it could obtain more attractive mortgage financing from insurance companies.
S&P Rating Plan Sparks Industry Firestorm
S&P this week asked the industry to comment on proposed changes to its rating methodology that would result in sweeping downgrades of super-senior, triple-A commercial MBS. The agency may want to brace itself for the response.Read more.
TALF Spurs Deutsche to Start Loan Program
Prompted by the new government program that will finance buyers of commercial MBS, Deutsche Bank has rolled out a program that aims to originate fixed-rate loans of up to $200 million for securitization.Read more.
Banks, Borrowers Start Mulling TALF Deals
A handful of lenders and REITs have started exploring the possibility of using the Federal Reserve's Term Asset-Backed Securities Loan Facility to foster new commercial MBS transactions, but no one expects a rush of deals to result.Read more.
Simon Pullout From Mall Draws Ire of ORIX
Special servicer ORIX Capital Markets said that Simon Property's decision to walk away from an aging Florida mall should cause investors to be wary about the willingness of even the biggest institutional sponsors to stand behind properties that run into trouble.Read more.
HSBC Mulls Way to Rescue Big Condo Loan
An HSBC syndicate is weighing an idea that could stave off the foreclosure of a high-profile Miami condominium complex and minimize losses on the $502 million loan that funded its construction.Read more.
Treasury Plan Seen Spurring CMBS Sales
Veteran commercial MBS investors think there's a reasonable chance that the U.S. Treasury Department's new toxic-assets program will drive up prices enough to encourage institutions to unload their holdings of super-senior CMBS.Read more.
Geithner Plan Raises Hopes of CMBS Pros
The U.S. Treasury Department's proposal for spurring the trading of toxic assets touched off a huge rally in the commercial MBS market this week, leading some players to conclude that the tide might have turned.Read more.
Mezzanine Lender Snags Riverton Workout
The investor holding an apparently worthless $25 million mezzanine loan on the Riverton apartment complex in Manhattan is angling for a payoff in return for allowing a workout to proceed.Read more.
Hilton Debt Clogs Lenders' Balance Sheets
Blackstone Group's $26.2 billion takeover of Hilton Hotels, the last big real estate transaction before the market downturn began in late-2007, has left seven banks - and the Federal Reserve - holding massive chunks of debt that they can't sell without taRead more.
Loan Extensions Add Wrinkles to Market
Special servicers are increasingly extending the terms of maturing commercial MBS loans that can't be refinanced, a move that is pitting senior bondholders against B-piece players and is complicating the efforts of fledgling finance shops to get off the gRead more.
Deutsche Pushes for New Approach to Crisis
With no end in sight to the credit freeze, Deutsche Bank has detailed a senior executive to Washington to approach government officials about ways to help the crippled structured-finance markets.Read more.
LoanCore Seeks Equity for Origination Fund
LoanCore Capital, which raised $500 million of equity from Singapore's sovereign wealth fund this summer to buy distressed debt, is now seeking to line up more than $3 billion for a commingled fund that will originate loans.Read more.
Few Big CMBS Loans Set to Mature in 2009
A Nov. 14 table of large CMBS mortgages scheduled to mature next year incorrectly included two loans: a $254 million mortgage to Americold on an industrial portfolio and a $77.2 million loan to Ross Partrich of RRead more.
Lehman, Credit Suisse Top Writedown Tally
The second paragraph of a Nov. 7 article, "Lehman, Credit Suisse Top Writedown Tally," incorrectly attributed Credit Suisse's $2.6 billion commercial real estate writedown over the past year to J.P. Morgan. The hRead more.
Leverage Cut on Vornado Project in Boston
After significantly reducing the amount of leverage originally planned, Bank of Ireland and Bank of America are close to wrapping up a $360 million syndicated loan for a mixed-use tower that a Vornado Realty partnership is building in Boston.Read more.