The 10-year, fixed-rate term of the $1.75 billion interest-only loan may raise some eyebrows, though the owners still have "implied equity" of $1.7 billion in the 2.2 million square foot property, per Moody's Investors Service.
The $278.3 million RCMF 2018-FL2 also has unusually heavy exposure to apartment buildings, offices and industrial properties that are either vacant or have low occupancy levels, according to Kroll Bond Rating Agency.
QSuper Board, an Australian pension fund, is tapping the commercial mortgage bond market to help finance a portion of a 52-story office building on Manhattan’s Upper West Side.
All five – Plaza West Covina Mall (Calif.), Franklin Park Mall (Ohio), Parkway Plaza (Calif.), Capital Mall (Wash.), and Great Northern Mall (Ohio) – were built in the 1970s and have JCPenney or Sears as a major tenant.
Fitch Ratings, which has only rated two other CRE CLOs over the past three years, joins Moody's Investors Service and Kroll Bond Rating Agency on the $514.2 million transaction.
Blame the decline in the oil and gas industry; many 2014 vintage deals have exposure to a number of multifamily and hotel properties in North Dakota and Texas, according to Fitch.
The biggest decline was in the delinquency rates for offices and retail, but late payments on multifamily and industrial CMBS loans increased.
Blackstone originally included 21 of the 23 properties as collateral for a $2 billion loan issuance and securitization in 2016 to partially fund its $8.8B BioMed Realty buyout.
The investment firm obtained $430 million of financing on its leasehold interests in 355,000 square feet of retail and office space, but it just lost its one office tenant, Amtrak.
Test your knowledge of the secondary mortgage market with this quiz of key industry abbreviations.
Two of the loans, or 10% of the $730 million of collateral, are secured by buildings that derive considerable income from parking, which Kroll Bond Rating Agency warns can fluctuate.
Collateral for the mortgage bonds does not include what Moody's Investors Service terms the "improvements," a 42-story building, state-of-the-art digital signage or a 452-room luxury hotel.
The overall delinquency rate for securitized U.S. commercial real estate loans is now 4.36%, a decrease of 19 basis points from the March level.
Banyan Street Capital and Balandis Real Estate are tapping the commercial mortgage bond market to help finance the revitalization of a mixed-use development in downtown Atlanta.
The €300 million Taurus 2018-1 also finances Italian retail assets that the Partners Group, based in Switzerland, purchased from the Blackstone Group in February.
Hunton Andrews Kurth LLP (formerly Hunton & Williams and Andrews Kurth Kenyon) has named Robert A. Davis Jr. as special counsel in its tax and ERISA practice.
Borrowers can get better rates elsewhere, so they're repaying ahead of schedule, leaving banks in the lurch. The steps lenders would have to take to keep the business could be prohibitively expensive.
The REIT obtained a $782.7 million mortgage from three banks; proceeds, along with $202 million of mezz loans and $33 million of cash, will be used to repay existing debt.
A consortium including GPP and TIAA has obtained a $500 million mortgage on a 672,581- square-foot portion of the 2.7-million-square foot Ala Moana Center in Honolulu.
The $826.6 million transaction, GPMT 2018-1, represents about two-fifths of the $2.4 billion portfolio of the REIT, which was spun out of Two Harbors Investment last year.
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