Covenant Review: Q1 LMEs more than double last year’s
Tariff impact on distressed companies could fuel LME increase
By
John Hintze
Retailers
Saks weighs fresh debt raise after Neiman merger bonds tank 35%
The move comes as bonds Saks sold to finance its $2.7 billion acquisition last year have lost more than a third of their value since they were issued in December.
Taubman Shops $1 billion deal backed by Dolphin Mall Miami
Top retail-mall owner Taubman has approached the market with a $1 billion CMBS deal to refinance the existing debt that is collateralized by one of the highest volume shopping centers in the U.S.
By
John Hintze
Century City prepared a $925 million CMBS refinance
KBRA estimates that the property has a net operating income of $101.4 million; a 7.25% cap rate, and an in-trust debt service coverage of 1.18x at term Secured Overnight Financing Rate (SOFR).
Plunging values prompting mall owners to assess walk-away options
The delinquency rate on regional mall commercial mortgage-backed securities was 22.9% in February, the highest of any real estate category, according to Moody’s
Credit Suisse returns to conduit CMBS in $650M offering
The sponsor has refrained from multi-borrower deals since March 2020, but has pooled together 28 loan participations from 40 properties – including notable concentrations in retail and lodging.
By
Glen Fest
Mall values plunge 60% after reappraisals triggered by bad debt
About $4 billion in value was erased from 118 retail-anchored properties with commercial mortgage-backed securities debt after reappraisals triggered by payment delinquencies, defaults or foreclosures.
S&P: CMBS issuance to rebound to $70B after 45% drop in 2020
Declining month-over-month delinquency levels and the rollout of COVID-19 vaccinations potentially give hope to more normalized economic activity.
By
Glen Fest
Mall of America gets modified terms on $1.4 billion mortgage
The largest U.S. shopping center became delinquent on its debt last year after its owner Triple Five Group began skipping mortgage payments, citing hardships from the COVID-19 pandemic.
2021 Outlook: Will more CMBS borrowers choose to turn in the keys?
Reports indicate distressed owners would rather surrender their hotel or retail properties instead of negotiate workouts on delinquent loans as the pandemic spread carries on.
By
Glen Fest
Forever-empty offices and malls may mean pain for CMBS investors
The more-than-$550 billion market for bonds backed by U.S. commercial mortgages may face losses even after promising Covid-19 vaccines become widespread, as key parts of the real estate market may not return to full strength anytime soon.
Sternlicht’s Starwood misses payments on $549 million mall debt
Debt delinquencies have soared for mall owners, which lost market share to e-commerce and were hit with tenant bankruptcies even before the pandemic forced shoppers and diners to stay home. By last month, more than 9% of retail commercial mortgage-backed securities were managed by special servicers.
The pandemic’s CRE domino effect
As revenue-starved retailers fall further behind on rent payments, landlords' cash flow will be strained, and defaults on commercial real estate loans could rise.
Fiserv sees existing credit lines as cure for PPP limitations
The race to provide coronavirus relief for small businesses is opening new routes to fund payments, including underused credit lines.
Fitch: CMBS delinquencies will approach crisis-era peak of 9%
Fitch assumes a significant spike in defaults over the next few months, as well as declining new issuance volume during the second and third quarters of 2020, fewer maturing loans and fewer resolutions by special servicers.
By
Glen Fest
Loss of appetite: How COVID-19 is impacting the franchising sector
The collapse of dine-in revenues for restaurant chains during the outbreak is placing whole biz deals under the ratings microscope.
By
John Hintze
S&P: CMBS delinquency rates declined in February
The falling rates continue a three-year trend of improving performance across numerous commercial mortgage sectors including multifamily, office and retail.
By
Glen Fest
Nearly $42M in CMBS at risk in GameStop store shutdown: Morningstar
GameStop's plan to shutter up to 200 stores could adversely affect commercial mortgage-backed securities loans with a combined allocated property balance of almost $42 million, according to Morningstar Credit Ratings.
Mall landlords weigh becoming lenders to blunt retail crash
Mall landlords accustomed to offering rent reductions to ailing retailers are mulling a new strategy to forestall the industry's collapse: positioning themselves as lenders to tenants struggling to stay afloat.
Peril and promise in lending to retailers
Brick-and-mortar retail isn’t dead yet. Though the trend of retailers closing stores in the face of stiff competition from e-merchants is certainly troubling to commercial real estate lenders, it would be a mistake to conclude that all retail loans are risky. Here's a look at which ones are the safest and, potentially, the scariest.
By
Andy Peters
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