CMBS

  • Coeur Defense ruling deemed credit negative

    The recent Coeur Defense ruling from the Versailles Court of Appeal is credit negative for CMBS backed by French real estate loans, according to Moody's. The agency says it has factored the current ruling's effect into its latest review of the Windermere XII transaction. Currently, it rates the class A notes at Baa2.

    The judgement passed by the Versailles Court .......

    News Round-up 26 March 2012

  • B-piece demand remains constrained

    Absent potential regulatory hurdles, S&P securitisation analysts believe that conduit B-piece demand will be enough to support projected US CMBS issuance this year. However, they suggest that the small number of buyers could constrain growth.

    Last year, eight players were active B-piece investors: Rialto (accounting for six deals), Blackrock (three), Torchlight (three), LNR (two), H/2 (two), Ellington (two), Northstar (one) .......

    News Round-up 26 March 2012

  • Maturing CRE volume jumps

    Trepp has updated its US commercial mortgage maturities outlook with 4Q11 data. The firm now estimates that US$362bn of CRE debt will mature in 2012 - up from US$346bn in 2011.

    For the five-year period 2012 to 2016, Trepp forecasts US$1.73trn of CRE maturities. Furthermore, its latest estimates of LTV ratios for the maturing mortgages indicate that nearly two-thirds of .......

    News Round-up 26 March 2012

  • Opera Uni restructuring proposal due

    Valad Investment Management is to present a restructuring proposal for the OPERA UNI CMBS on 30 March. The proposal will see the implementation of enhanced asset management initiatives to maximise the recovery to bondholders through an accelerated disposal programme, with annual amortisation targets totalling €235m by August 2015, according to structured finance strategists at Chalkhill Partners.

    The proposed restructuring will .......

    News Round-up 26 March 2012

  • TITN 07-1 progress reviewed

    A noteholder meeting was held on 23 March for the TITN 2007-1 (NHP) CMBS. The presentation included information on the recent actions taken by HC-One in connection with the 241 Southern Cross care homes transferred under the restructuring, as well as an overview of future plans for the homes.

    On 1 November 2011 NHP injected £30m into the HC-One business .......

    News Round-up 26 March 2012

  • CMBS vet moves up a rung

    Michael Mazzei has joined Ladder Capital as president. Greta Guggenheim, company co-founder and current president, will become cio.

    Mazzei has over 25 years of experience in CRE and capital markets. He joins from Bank of America, where he was md and global head of the CMBS and bank loan syndications groups, while he has also worked as head of CMBS .......

    Job Swaps 23 March 2012

  • All CMBS systems go

    US CMBS is continuing to perform strongly. The primary market is enjoying a flurry of issuance, while spreads in the secondary market remain relatively tight.

    "The market has been pretty active. There have been a couple of deals pricing this week and there was another one that priced last week. The new issue side of things is very active," reports .......

    Market Reports 23 March 2012

  • US CMBS loss severities hit highs

    The weighted average loss severity for loans in US CMBS liquidated at a loss was 41% in the fourth quarter, up from 39.7% in the third, and the highest severity since the inception of Moody's quarterly US CMBS Loss Severities report. Excluding those with 'de minimis' losses (of less than 2%), the historical weighted average loss severity for all liquidated .......

    News Round-up 22 March 2012

  • New role for CRE vet

    David Eyzenberg has joined Avison Young in New York as principal. He joins the CRE firm's capital markets team and will be responsible for providing representation to owners, developers and investors seeking to access institutional capital and assets.

    Eyzenberg joins from NewOak Capital where he was md and head of the firm's real estate division. He was president of Prodigious .......

    Job Swaps 22 March 2012

  • Loan restructuring completed

    The £175.66m Reference Loan no. 3 in the synthetic CMBS Estate UK-3 has been restructured. European asset-backed analysts at RBS note that successful CMBS loan restructurings have been less common in Europe than may be expected, so the result could prove to be a good template for other stressed loans.

    Under the restructuring, a £200m portion of senior debt was .......

    News Round-up 21 March 2012

  • CRE CDOs hit

    S&P has placed 697 ratings from 97 publicly rated CRE CDOs and re-REMIC transactions - representing an aggregate issuance amount of US$45.4bn - on credit watch with negative implications. The actions follow the update to the agency's criteria and assumptions used to rate CDO transactions backed by structured finance (SF) collateral (SCI 22 February).

    The credit watch placements affect 71% .......

    News Round-up 21 March 2012

  • CMBX rally losing steam?

    The CMBX indices may be in a period of consolidation, according to CMBS strategists at Citi. They note that the CMBX rally has lost some steam in recent weeks, with the indices largely underperforming the cash and equity markets.

    After peaking in January, synthetic AJ tranches - which had served as 'risk-on' trade candidates - have failed to keep up .......

    News Round-up 21 March 2012

  • Maguire property fates become clearer

    Maguire Properties has filed its 10-K statement with the US SEC, shedding light on a number of CMBS properties sponsored by the company. Several loans are either in, or heading for, receivership - although not all properties are set for disposal.

    The US$470m Two California Plaza loan securitised in GSMS 2007-GG10 is likely to be placed in receivership shortly. It .......

    News 21 March 2012

  • Call for improved servicing disclosure

    US CMBS investor concerns that servicers are increasingly basing workout strategies on the highest collectable fee can be quelled through improved disclosure, according to Fitch. The agency says it has been alerted to several instances where modification fees charged to the borrower have been significantly higher than expected and were not readily disclosed to investors.

    Once a loan workout is .......

    News Round-up 19 March 2012

  • Freddie eyes five-year mortgages

    Freddie Mac is in the market with the US$1.1bn FREMF 2012-K501, its first CMBS backed exclusively by multifamily mortgages with a five-year term. The transaction is expected to price this week and settle on 11 April.

    "In the first quarter of this year, we have brought four K Deals to a vibrant agency CMBS market," comments Mitch Resnick, co-head of .......

    News Round-up 19 March 2012

  • CRE debt JV formed

    Hudson Realty Capital and RXR Realty have launched a CRE lending platform to originate and purchase CRE debt assets. The joint venture will focus on first-mortgage bridge loans as well as B-notes, mezzanine and preferred equity opportunities in the New York tri-state region.

    RXR has significant experience operating in these markets and will provide real estate underwriting through use of .......

    Job Swaps 19 March 2012

  • CRE firm appoints sales md

    Jordan Cortez has joined Rockwood Real Estate Advisors as md. He will be based in Dallas and lead the firm's investment sales efforts throughout Texas and the Southwest as well as executing complex debt and equity engagements nationally.

    Cortez joins from Johnson Capital where he was equity finance vp in New York and focused on large scale equity raises and .......

    Job Swaps 19 March 2012

  • Special servicer switched

    The operating advisor on Deco 17 - Pan Europe 7 has replaced Hatfield Philips with Deutsche Bank as special servicer for the Mayne loan. Moody's notes that, based on its assessment of the capability of Deutsche Bank to perform the role, the replacement will not result in a reduction or withdrawal of the current ratings of the notes.

    The agency .......

    News Round-up 16 March 2012

  • EMEA special servicing activity reviewed

    One EMEA CMBS loan was transferred into special servicing and no loans were fully worked out during February, according to Moody's monthly update on the sector. The agency's weighted average expected principal loss for loans in special servicing stands at 36%.

    The newly transferred loan is the £429m City Point asset securitised in Ulysses (European Loan Conduit No. 27), backed .......

    News Round-up 16 March 2012

  • Recourse wrangling

    A recent Michigan Court of Appeals decision over the Cherryland Center loan securitised in GMACC 2002-C3 has the potential to challenge the main tenets of the CMBS market - the non-recourse nature of the loans. The ultimate outcome of the litigation is likely to be positive for CMBS investors, according to CRE debt analysts at Deutsche Bank.

    The collateral for .......

    News 14 March 2012

  • Multi variety

    Diverse German multifamily CMBS outcomes expected

    The German multifamily sector accounts for about 20% of all securitised assets in European CMBS. Deal performance in the sector has been mixed, with noteholders frequently facing extensions and sometimes losses.

    Geography is a highly significant factor in German multifamily CMBS, as property location is often a major driver in loan performance. Aside from a few notable exceptions, East German .......

    News Analysis 13 March 2012
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