CMBS

  • US CMBS loans defaulting at 'record pace'

    Fitch reports that cumulative defaults for fixed rate US CMBS jumped by 112bp this quarter to 10.6%, through to the end of 3Q10.

    "Loans continue to default at a record pace, with large loans driving the trend," says Fitch md Mary MacNeill. "Hotel and office properties were the largest contributors to defaults this past quarter."

    Loan defaults for this year .......

    News Round-up 25 October 2010

  • Euro CMBS payment defaults rising

    S&P reports that European CMBS maturity payment defaults are continuing to increase this year and have, for the first time, outstripped term payment defaults.

    Of the 34 payment defaults in 2009, only eight defaulted for the first time at maturity - with 26 defaulting during the loan term. By contrast, of the 33 payment defaults between January and September 2010, 18 .......

    News Round-up 21 October 2010

  • Real estate vets join advisory firm

    Chatham Financial has appointed Mike Havala and John Avioli as senior executives in its capital advisory group, Chatham Capital Advisors. The pair will launch its Chicago office.

    Havala and Avioli were the co-founders of Blue Spire Capital, a Chicago-based consulting group. Previously, Havala spent 15 years as the cfo of First Industrial, while Avioli spent 12 years as the director .......

    Job Swaps 20 October 2010

  • FLTST 1 senior noteholders fire warning shot

    M&G is to convene an informal meeting of the class A noteholders in Fleet Street Finance One to discuss the pending maturity of the outstanding loan, which is scheduled for February 2011. European asset-backed analysts at RBS suggest that the action is a direct response to Cairn's appointment as financial advisor to the Queens Moat House borrower, which may be .......

    News Round-up 19 October 2010

  • Majority of Extended Stay CMBS pays down

    Extended Stay Inc last week emerged from Chapter 11 bankruptcy protection. The company was bought by a group of private equity investors for a total of US$3.925bn in July.

    Most of the hotels the company owns had debt securitised in the WBCMT 2007-ESH CMBS. The October remittance report for the transaction indicates that classes A through to J were paid .......

    News Round-up 19 October 2010

  • Japanese CMBS loan defaults reaching peak

    Fitch says that the number and balance of defaulted loans underlying Japanese CMBS has declined as of end-September. Despite its expectations that the previous upward trend in defaulted loans is reaching a peak, there is a possibility, the agency says, that the total defaulted loan balance may increase again in Q410.

    "This is the first time that both the number .......

    News Round-up 19 October 2010

  • LTV breaches should be 'treated with caution'

    Hatfield Philips International (HPI) says that CMBS LTV breaches should be treated with caution and should rarely form the basis of a decision leading to foreclosure for commercial properties.

    Indeed, enforcing on the basis of an LTV breach should only be considered in exceptional circumstances, according to the firm. For example, where the asset itself is beyond recovery or has .......

    News Round-up 18 October 2010

  • CREFC ceo steps down

    CRE Finance Council ceo Dottie Cunningham has resigned, with John D'Amico named as interim ceo. Separately, D'Amico will also become president of the organisation for a one-year term, starting in June 2011. The search for a new permanent chief has also been begun.

    A search committee formed by past CRE Finance Council presidents has been set up to find a .......

    Job Swaps 15 October 2010

  • Law firm targets real estate disputes

    Duval & Stachenfeld has formed a new practice group, the structured real estate dispute resolution team, as an adjunct to its distressed real estate practice. The new team is co-chaired by real estate partner Bruce Stachenfeld and litigation chair Allan Taffet.

    The law firm says it has seen a lot of investors and lenders "scrambling" to preserve their capital as .......

    Job Swaps 15 October 2010

  • US CMBS delinquencies rise again

    The delinquency rate on loans included in US CMBS increased by 14bp in September to 8.24%, according to Moody's Delinquency Tracker. It was the smallest monthly increase in the national delinquency rate since October 2008 and the fourth consecutive month of modest growth in the rate.

    "This easing of the rate of growth in the delinquency rate does not necessarily .......

    News Round-up 14 October 2010

  • Distressed debt director hired

    Steven Bandolik has joined Deloitte Financial Advisory Services as director in its distressed debt and asset practice group. Based in Chicago and New York, Bandolik is responsible for developing financial advisory and consulting services for clients nationally. He will also deliver services in real estate restructuring, asset recovery and capital markets, while providing valuation services and asset management advice to .......

    Job Swaps 13 October 2010

  • LNR names co-ceos, launches new fund

    LNR Property has named two new senior executive officers to lead its diversified real estate services, investment company and CRE mortgage special servicer. The firm has also launched a new US$200m fund as part of its new investment management platform (IMP).

    Justin Kennedy has been appointed as co-ceo and is responsible for the firm's strategic direction, current investment activities and its .......

    Job Swaps 13 October 2010

  • Economically-challenged states driving CRE defaults

    Loans secured by properties in economically challenged states are defaulting at an elevated rate and driving delinquencies higher, according to the latest US CMBS delinquency index results from Fitch. CMBS late-pays rose by 18bp to 8.66% last month.

    "Though certain macroeconomic indicators have been more encouraging of late, CMBS delinquencies will not subside anytime soon," comments Fitch md Mary MacNeill. .......

    News Round-up 13 October 2010

  • Greater scrutiny of PSAs advised

    MBS analysts at RBS suggest that investors should pay more attention to pooling & servicing agreements (PSAs) when analysing CMBS for relative value purposes. They note that PSAs can significantly impact principal and interest distributions, as well as losses allocated to a bond.

    "The provisions are often not well defined, are not consistent across deals and have not been thoroughly .......

    News Round-up 13 October 2010

  • Stuy Town auction postponed on mezz bid

    The foreclosure auction of Stuyvesant Town-Peter Cooper Village has been postponed to 13 October due to negotiations over the mezzanine debt. CWCapital is seeking to acquire it from the Pershing/Winthrop joint venture, reportedly with the aim of reducing the amount of the transfer tax due.

    If CWCapital wins the foreclosure auction with the credit bid, Rose Associates is expected to .......

    News Round-up 6 October 2010

  • CRE advisory md named

    The Garibaldi Group has appointed Gary Sopko as md in its newly created capital markets advisory group, specialising in debt and equity solutions for CRE. As md of capital market services for the firm, Sopko is responsible for delivering the optimal capitalisation structure for the firm's clients' investment, development and financing needs by sourcing both debt and equity for CRE .......

    Job Swaps 6 October 2010

  • US CMBS delinquencies breach 9% mark

    US CMBS delinquencies topped 9% for the first time in history at end-September, reaching 9.05%, according to the latest Trepp CMBS Delinquency Report. However, the rate of increase slowed dramatically to just 13bp - the second lowest increase of 2010 and the smallest since July's 12bp increase. The average monthly increase for the past 12 months has been 33bp.

    The .......

    News Round-up 6 October 2010

  • CMBS maturity repayment index rises

    Fitch reports that its European CMBS Maturity Repayment Index increased to 38.5% from 36.8% during the month of September, due to two loans paying in full and partial repayments on six other loans.

    Of the three loans that were scheduled to mature in September 2010, only the €31m Hofplein loan (from Plato No. 1) paid in full. However, the Vich .......

    News Round-up 6 October 2010

  • US$35bn US CMBS issuance forecast for 2011

    Tightening credit spreads for US CMBS since the highs reached in 1Q09 should continue to spur new issuance in the near term, according to S&P. The agency notes that issuance for the fourth quarter could fall within the US$4bn-US$8bn range - the largest total since early 2008 - based on the current public pipeline of CMBS transactions.

    Annualising S&P's fourth-quarter .......

    News Round-up 6 October 2010

  • HPI enhances investor report transparency

    Hatfield Philips International (HPI) has begun offering investors access to investor reports from its website, with the aim of providing both its clients and the market with a greater level of accessibility and transparency across all types of real estate transactions.

    In addition to downloadable investor reports, HPI is publishing its primary and special servicing portfolio performance statistics. Mike Brown, .......

    Job Swaps 29 September 2010

  • Update due for investor reporting package

    CRE Finance Council Europe is set to release a market exposure draft of its European Investor Reporting Package Version 2.0 on 15 October. Among the updates to the package, the new version will introduce minimum population fields and standards for calculating key financial indicators, such as ICR, as well as a methodology for analysing/reporting borrowers' property income statements. The package .......

    News Round-up 29 September 2010
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