CMBS

  • CRE firm names president

    Cornerstone Real Estate Advisers has appointed Scott Brown as president of the firm. He will join next month and take over from David Reilly, who will remain as ceo.

    Brown has 26 years of real estate experience and has been involved in securitisations, REITs and various other investment structures. He joins from CBRE Global Multi Manager, where he was head .......

    Job Swaps 28 January 2014

  • Italian government exposure analysed

    Fitch says that ratings on outstanding Italian CMBS will not be affected by recent legislative changes, which include further termination rights for certain public entity tenants. The agency has identified three CMBS with material exposure to Italian government leases.

    In an attempt to cut rental costs and optimise occupied space related to administrative functions, Law decree No. 151 of 30 .......

    News Round-up 27 January 2014

  • Innkeepers up for sale

    The Chatham/Cerberus joint venture has put the 51-hotel, 6,847-room Innkeepers portfolio up for sale via Eastdil Secured. The asset is being offered unencumbered by management contracts and has a US$950m interest-only loan in place that is assumable, subject to certain conditions.

    The portfolio benefits from US$171m (or approximately US$25,000 per room) in capital expenditures since 2007. Operating performance was strong .......

    News Round-up 27 January 2014

  • Conduit credit quality hits 2005 lows

    US CMBS conduit loan credit quality has decreased to the levels of the late 2005 issuance, requiring more credit enhancement to offset increased credit risk, according to Moody's. The agency says that credit enhancement levels for deals in 1Q14 will be nearly 9% to achieve a Baa3 rating, 300bp higher than the levels necessary for a Baa3 rating in early .......

    News Round-up 24 January 2014

  • CMBS 2.0 prepayments on the rise

    The JPMCC 2011-C5 US$49.7m class A1 notes paid off this month after three loans - the US$26.43m Lehigh Valley Portfolio, US$6.45m Morningstar of Chapel Hill and US$3.55m Morningstar of Virginia Beach - prepaid with yield maintenance. The move is part of a growing trend of CMBS 2.0 loans prepaying with yield maintenance as both commercial real estate prices and Treasury .......

    News 24 January 2014

  • DSCRs under pressure

    Every major CMBS underwriting metric declined in 2013 except for debt service coverage ratio (DSCR), but with interest rates likely to rise over the next two years DSCR will likely decline too, according to Fitch. In turn, the agency is likely to raise credit enhancement levels if higher interest rates push DSCRs down.

    Even if current levels of DSCR are .......

    News Round-up 23 January 2014

  • Loss reimbursements to diverge?

    The recent loss recoupment to the D tranche of CWCI 2006-C1 (SCI 20 January) appears not to have been reflected in the January settlements for the CMBX.3 index, of which the transaction is a constituent. The loss on the AJ tranche resulted in pay-outs on the AJ.3 sub-index, however.

    CMBX documentation allows for a 'write-down reimbursement' payment - made by .......

    News Round-up 23 January 2014

  • CMBS secondary bucks quiet trend

    US CMBS BWIC volume picked up considerably yesterday to about US$200m. Generic GG10 spreads remained largely unchanged, however, at swaps plus 165/163.

    SCI's PriceABS data shows a number of bonds from various collateral and vintages out for the bid during yesterday's session. Among them was the COMM 2006-FL12 C tranche, which was talked at 98 and covered at .......

    Market Reports 23 January 2014

  • CMBS trading vet appointed

    Angel Oak Capital Advisors has appointed Kin Lee as a senior portfolio manager. He will focus on building and managing strategies within the CMBS market.

    Lee was previously an executive director at Nomura Securities and was head of CMBS trading at both Mizuho Securities and RBS Greenwich Capital. He has also worked in CMBS trading at Credit Suisse and Donaldson, Lufkin .......

    Job Swaps 23 January 2014

  • Mortgage vet takes production role

    John Marr has joined Greystone's production team as md. He will focus on originating debt financing solutions across Fannie Mae, Freddie Mac, CMBS and Greystone's proprietary lending platforms.

    Marr joins from Alliant/ACRE Capital and has also worked at PaineWebber and Citibank. He is based in Connecticut and will report to head of agency production, Joe Mosley.

    .......

    Job Swaps 22 January 2014

  • Japanese CMBS criteria updated

    S&P has updated its methodology and assumptions for rating Japanese CMBS. The agency has also published a commentary clarifying how its global property evaluation methodology would be applied to such transactions.

    The new criteria are designed to refine the approach S&P uses when assigning ratings to Japanese CMBS and to provide a more transparent framework for analysing such transactions. The .......

    News Round-up 22 January 2014

  • CMBS can absorb JCP impact

    The Fitch-rated CMBS that are exposed to JC Penney's announced store closures (SCI 16 January) are capable of absorbing the potential loss, the agency says. It believes significant cashflow changes are unlikely as the stores that are closing have been underperforming for some time and are not drawing substantial traffic to their shopping centres. Some malls could even benefit if .......

    News Round-up 22 January 2014

  • EIOPA urged to reconsider CMBS

    CREFC Europe and INREV have submitted comments to EIOPA on its technical report on standard formula design and calibration for certain long-term investments (SCI 20 December 2013). The two organisations call for certain CMBS to qualify for 'Type A' capital treatment - by reference to objective, qualitative criteria - and not to condemn all CMBS to 'Type B' treatment.

    Doing .......

    News Round-up 22 January 2014

  • Rare equity reimbursement seen

    Seven loans backing the CWCI 2006-C1 deal - totalling US$219m in outstanding balance - have been liquidated, including a couple of properties that appear to be part of the large CWCapital Auction.com sale in December. Unusually, the sales resulted in an equity class loss reimbursement pay-out.

    The liquidated assets include the US$52m Addison Corporate Center (see SCI's CMBS loan events .......

    News Round-up 20 January 2014

  • CMBS delinquencies dip below 6%

    US CMBS delinquencies declined by 12bp in December to 5.98% from 6.1% a month earlier, according to Fitch's latest index results for the sector. Late-pays now stand at three percentage points below their July 2011 peak of 9%, with multifamily and hotels seeing the largest improvements last year.

    Resolutions of US$1.1bn last month outpaced additions to the index of US$717m. .......

    News Round-up 20 January 2014

  • Borrower default behaviour examined

    New Freddie Mac research shows that a commercial real estate borrower's loan default decision for an underperforming property is based on several factors, including property and loan characteristics, as well a economic and market conditions. The report, entitled 'Default Ruthlessness: Examining Borrower Default Behavior', analysed and compared borrower default behaviour for CMBS loans and Freddie Mac multifamily loans. The analysis .......

    News Round-up 17 January 2014

  • Low prepays for Euro CMBS

    Only 22% of the 31 CMBS loans - totalling €2.3bn - scheduled to mature in 4Q13 repaid at maturity or prepaid, lower than the four-quarter rolling average of 37%, Moody's reports. At the same time, Q4 had the highest proportion of defaulted or repaid-with-loss loans of any quarter in the last two years.

    Moody's says that the low prepayment rate .......

    News Round-up 17 January 2014

  • Shortfall discrepancies examined

    Fitch is rolling out a series of comments highlighting lessons learned in EMEA CMBS, which aims to identify structural shortcomings in legacy CMBS transactions. The first of the reports examines discrepancies between loan maturity dates and loan interest payment dates, which can lead to note interest shortfalls.

    In recent years several transactions have suffered note interest shortfalls attributable not to .......

    News Round-up 16 January 2014

  • SFR structuring innovation unveiled

    FeatherStone Investment Group says it has designed a new class of security that will allow qualified institutional buyers to participate in the equity-like returns of single-family rental securitisations without a long-term capital commitment to the sector. Dubbed a residual tracking tranche (RTT), it is anticipated to have a three- to five-year maturity based on the longest issued debt tranche within .......

    News Round-up 16 January 2014

  • JCP closures to hit CMBS

    JCPenney is set to close 33 underperforming stores beginning this year. Nine US CMBS loans have exposure to these properties.

    CMBS analysts at Barclays Capital note that the largest of these loans is the US$115m Centre at Salisbury, securitised in JPMCC 2006-LDP7, which is reporting a DSCR NCF of 1.31x. The next largest is the US$36.79m Laurel Mall loan, securitised .......

    News Round-up 16 January 2014

  • CWCapital sale results emerging

    Results from the US$2.57bn CWCapital CMBS auction (SCI passim) are beginning to trickle out. Over 700 potential buyers signed confidentiality agreements in mid-October after the liquidation was announced, with 153 of them eventually lodging bids.

    Starwood Capital, Lone Star and an Oaktree Capital Management/Sabal Financial Group venture are said to be among the successful bidders. Additionally, Blackstone is believed to .......

    News Round-up 16 January 2014
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