Embed Size (px)
Citation preview
February 17, 2017 32Commercial Mortgage ALERT
Jefferies LoanCore Contact: Dan Bennett, 203-861-6037 2016 originations: $1.2 billion 2017 originations (projected): $1.8 billion 2017 offerings (projected): 3 Originators: Greenwich, Conn.: Brett Kaplan, 203-861-6015 Greenwich, Conn.: Richard Small, 203-861-6005 Greenwich, Conn.: Dana Arrighi, 203-861-6014 Greenwich, Conn.: Chad Jones, 203-861-6021 Greenwich, Conn.: Jeff Santoro, 203-861-6016 Atlanta: Tom Aschmeyer, 404-877-3210 Atlanta: Bryan Collins, 404-877-3211 Chicago: Paul Stepan, 312-750-4412 Chicago: Steve Kay, 312-750-4442 Chicago: Jason Mergen, 312-750-4440 Irvine, Calif.: David Froschauer, 949-681-2841 Los Angeles: Chapin Hunt, 310-281-4420 Los Angeles: Steve Graines, 310-281-4426 Los Angeles: Jay Um, 310-281-4424 San Francisco: Jean Baker, 415-284-8410
KeyBank Contacts: Dan Baker, 312-730-2705 Joe DeRoy, 913-317-4230 2016 originations: $755 million 2017 originations (projected): $1.25 billion 2017 offerings (projected): 5 Originators: Commercial Production Leader: Matt Ruark, 913-317-4237 New York/Northeast: William Cassidy, 212-424-1818 Philadelphia/Mid-Atlantic: John Christen, 267-513-1851 Washington/Mid-Atlantic: Scott Bois, 202-452-4942 Atlanta/Southeast: Stephen Williams, 770-510-2115 Chicago/Great Lakes: Jacob Proctor, 312-730-2709 Dallas/Texas: Joe Schmidt, 214-414-2585 Orange County/Southwest: John Loshbaugh, 949-419-3803 Seattle/Northwest: Josh Berde, 425-709-4340 Chicago/Institutional: Randy Martin, 312-730-2741 Chicago/Institutional: John Hofmann, 312-730-2745
Ladder Capital Contact: Michael Mazzei, 212-715-3196 2016 originations: $1.2 billion 2017 originations (projected): $2.5 billion 2017 offerings (projected): 6-8
LStar Capital Contact: Alex Chan, 212-849-9600 2016 originations: $653 million 2017 originations (projected): $1.2 billion 2017 offerings (projected): 2-3
UCC Public Sale Notice Please take notice that Jones Lang LaSalle, on behalf of Brill Holdco, LLC, a Delaware limited liability company (the “Secured Party”), the assignee of BREF IV Series A LLC, a Delaware limited liability company (the “Original Secured Party”) offers for sale at public auction on March 14, 2017 at 3:00 PM
of the limited liability company membership interests in 1619 Property Mezz LLC, a Delaware limited liability company (the “Senior Mezzanine Borrower”),
1619 Broadway Realty LLC (“Senior Borrower”), which is the sole owner of the property commonly known as the “Brill Building” located at 1619 Broadway,
Mezzanine Loan, the Junior Mezzanine Borrower has granted to the Original
the Original Secured Party will assign the Junior Mezzanine Loan and related
Mezzanine Loan is subordinate to (i) a mortgage loan and other obligations and liabilities of the Senior Borrower or otherwise affecting the property (the “Senior Loan”) and (ii) a senior mezzanine loan and other obligations and
Senior Mezzanine Loan is secured by the limited liability company membership
connection with obtaining information and bidding on the Interests, including but not limited to, (1) that each bidder must comply with the restrictions applicable to the sale of the Interests under the Intercreditor Agreement dated as of October 23, 2015 by and among the Secured Party, the holder of the Senior Loan and the holder of the Senior Mezzanine Loan (the “Intercreditor”), including that such
has obtained the consent of the holder of the Senior Loan and the holder of the Senior Mezzanine Loan or will repay the Senior Loan and the Senior Mezzanine
express or implied warranties, representations, statements or conditions of any kind made by the Secured Party or any person acting for or on behalf of
any other person acting for or on behalf of the Secured Party and each bidder
responsible for the payment of all transfer taxes, stamp duties and similar taxes
who will represent that they are purchasing the Interests for their own account
the Securities Act of 1933, as amended (the “Securities Act”), and may not be
such other limitations or conditions in connection with the sale of the Interests
All bids (other than credit bids of the Secured Party) must be for cash, and
funds within 24 hours after the sale and otherwise comply with the bidding
SECURITIZATION PROGRAMS
Continued on Page 34
For more information contact or visit:
cbre.com/multifamily
CBRE delivers outcomes that drive business and bottom-line performance. With more than $24 billion
PERFORMANCE ADVANTAGE.
Morgan Stanley Contact: James Flaum, 212-761-4405 2016 originations: $4.5 billion 2017 originations (projected): $7 billion 2017 offerings (projected): 18 Originators: National: Nailah Flake-Brown, 212-761-3455 National: George Kok, 212-761-0327 West Coast: Gary Duff, 310-788-2253
Natixis Contacts: Head of Real Estate Americas: Greg Murphy, 212-891-5752 Head of CMBS securitization: Jerry Tang, 212-891-5752 2016 originations: $2 billion 2017 originations (projected): $3 billion 2017 offerings (projected): 8 Originators: National: Michael Magner, 212-891-5723 National: Michael Girimonti, 212-891-5709 National: Gavin Elwes, 212-891-5718 National: Brian Clark, 212-891-5749 National: Bruce Habig, 212-891-5728 National: Vishal Vanjani, 310-432-7978
NCB Contact: Munevver Yolas, 703-302-1917 2016 originations: $445 million 2017 originations (projected): $400 million 2017 offerings (projected): 5 Originators: New York: Edward Howe, 212-808-0880 New York: Mindy Goldstein, 212-808-0880 New York: Harley Seligman, 212-808-0880 Southeast: Robert Bernstein, 703-302-1923 Southeast: Larry Mathe, 703-302-1909 Mid-Atlantic: Greg Daniszewski, 703-302-1927
Principal Commercial Contact: Margie Custis, 515-247-7987 2016 originations: $409 million 2017 originations (projected): $1.2 billion 2017 offerings (projected): 4-6 Originators: West: Kevin Catlett, 515-283-9986 Midwest/Texas: Phil Friedrich, 515-362-0495 Northeast: Doug McKinstry, 515-283-5360 Southeast: Kerry Studer, 515-235-5369
February 17, 2017 34Commercial Mortgage ALERT
SECURITIZATION PROGRAMS
revealedHush-hush dealings
Commercial Mortgage Alert, the weekly newsletter that tips you off to behind-the-scenes developments in real estate finance.
Start your free trial at CMAlert.com or call 201-659-1700
Continued on Page 36
© 2017 Starwood Mortgage Capital. Trade/service marks are the property of Starwood Mortgage Capital. All rights reserved. Restrictions apply. Some products are not available in all states.This is not a commitment to lend. This is an advertisement.
www.starwoodmortgagecapital.com
Client Focused. Execution Driven.
SSttaarrwwoooodd MMortgaggggggggggeeeeeee CCCaaaaaaaappppppppppppiiiitttaallllllll
GrandMarc at Riverside$33,000,000Multifamily
Riverside, CAAcquisition
February 2017
Liberty Center$21,100,000
OfficeTroy, MI
RefinanceJanuary 2017
Ocotillo Plaza$19,750,000
RetailLas Vegas, NV
RefinanceFebruary 2017
Hilton Durham$16,500,000
HospitalityDurham, NCAcquisition
January 2017
Montgomery Triangle Gateway$7,460,000Mixed Use
Cincinnati, OHRefinance
January 2017
Courtyard Business Center$5,700,000
Flex Office / IndustrialSunrise, FLRefinance
January 2017
Northeastern U.S.Jim Freel 212.600.2837 | 516.305.2016 [email protected]
Tim Szalay 212.600.2836 | 917.603.6331 [email protected]
Western U.S.Craig Picket 212.600.2839 | 917.992.0374 [email protected]
Gerry Santos 949.885.8262 | 949.244.0503 [email protected]
Southeastern and Central U.S.David Auerbach 305.695.5519 | 78 6 .853.545 0 [email protected]
Steven DeRose 305.695.5845 | 352.514.2128 [email protected]
Lance Johnson 704.264.3509 | 704.904.1318 [email protected]
Keith Thompson 704.973.9035 | 704.408.2929 [email protected]
Mike Stone 646.884.6430 | 646.784.0973 [email protected]
James Ruggiero 646.884.6425 [email protected]
Southwestern U.S.
February 17, 2017 36Commercial Mortgage ALERT
RAIT Financial Contact: Greg Marks, 215-207-2040 2016 originations: $300 million (CMA estimate) 2017 originations: $300 million (CMA estimate) 2017 offerings (projected): 1-2 Originators: Marco Lainez, 215-207-2044 Paul Armour, 972-447-8335 Steve Roberts, 917-912-8538 Jake Bierly, 215-207-2042 Steve Hamm, 215-207-2043 Zack Montana, 972-447-8383
ReadyCap Commercial Contact: Anuj Gupta, 212-257-4664 2016 originations: $400 million 2017 originations (projected): $600 million 2017 offerings (projected): 2 Originators: Southern California: Lisa Cappelletti, 949-491-8081 Austin: Dan Gaylord, 805-501-4318 New Jersey: Joel Covington, 443-783-4851 New York/New Jersey: John Drennan, 917-545-5125 Charlotte: Kevin Leonard, 704-399-2131 Washington: Oliver Harris, 202-251-9372 Atlanta: Russell Grigg, 404-992-3505 Dallas: Jeff Bottoms, 469-644-2777 Dallas: Michel Gilbert, 469-706-7072 Dallas: Eli Smith, 469-706-7070 Denver: Matt Pagan, 870-219-0588
Rialto Capital Contact: John Herman, 212-415-4847 2016 originations: $1.8 billion 2017 originations (projected): $2 billion 2017 offerings (projected): 12 Originators: Brett Ersoff, 212-415-4848
Silverpeak Argentic Contact: Doug Tiesi, 646-560-1755 2016 originations: $450 million 2017 originations (projected): $1.5 billion 2017 offerings (projected): 6
Societe Generale Contact: Wayne Potters, 212-278-6107 2016 originations: $1.1 billion 2017 originations (projected): $2.5 billion 2017 offerings (projected): 10 Originators: REITs: Stew Whitman, 212-278-6224 Southeast: Joey Petras, 404-942-3701 Northeast: Chris Kramer, 212-278-6171 Northeast: Brett Gaffan, 212-278-7968 West Coast: Gary Swon, 949-225-4416 West Coast: Peter Lewicki, 310-566-8154
SECURITIZATION PROGRAMS
AnticipateReal Estate Alert, the
weekly newsletter that delivers the earliest possible word on
looming dangers in the commercial-property market.
Start your free trial at REAlert.com or call 201-659-1700
Continued on Page 38
MIDLAND LOAN SERVICES | If your business
needs comprehensive solutions that can help to
reduce costs, increase efficiencies and mitigate
risk, Midland can deliver. We offer an integrated
approach to commercial loan servicing and asset
management, including private label subservicing
and outsourcing.
To learn more, visit pnc.com/midland.
*Commercial real estate industry rankings, 2016
PNC, PNC Bank, Midland Loan Services and Grow Your Business, Not Your Overhead are registered marks of The PNC Financial Services Group, Inc. (“PNC”).
Lending products and services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC and Member FDIC. PNC Bank and certain of its affiliates, including PNC TC, LLC, do business as PNC Real Estate. PNC Real Estate provides commercial real estate financing and related services. Through its Tax Credit Capital segment, PNC Real Estate provides lending services, equity investments and equity investment services relating to low income housing tax credit (“LIHTC”) and preservation investments. PNC TC, LLC, an SEC registered investment advisor wholly-owned by PNC Bank, provides investment advisory services to funds sponsored by PNC Real Estate for LIHTC and preservation investments. Registration with the SEC does not imply a certain level of skill or training. This material does not constitute an offer to sell or a solicitation of an offer to buy any investment product.
Lending products and services may require credit approval.
©2017 The PNC Financial Services Group, Inc. All rights reserved. CIB RE REB PDF 1216-063-425401
◊
Midland has earned the industry’s highest rankings as a U.S. primary and master servicer from Standard & Poor’s, Morningstar and Fitch, and the highest rankings as a U.S. special servicer from Standard & Poor’s and Morningstar.*
REAL ESTATE BANKING | AGENCY FINANCE | TAX CREDIT CAPITAL | MIDLAND LOAN SERVICES
Grow Your Business, Not Your Overhead®
RE Midland Loan Svcs Ad_8.5x11_425401_FinalB.indd 1 12/9/16 7:48 AM
February 17, 2017 38Commercial Mortgage ALERT
Starwood Mortgage Contact: Larry Brown, 704-362-1979 2016 originations: $1.8 billion 2017 originations (projected): $1.8 billion 2017 offerings (projected): 12 Originators: Northeast: Jim Freel, 212-600-2837 Northeast: Tim Szalay, 212-600-2836 Southeast/Central: David Auerbach, 305-695-5519 Southeast/Central: Steve DeRose, 305-695-5845 Southeast/Central: Lance Johnson, 704-264-3509 Southeast/Central: Keith Thompson, 704-973-9035 Southwest: James Ruggiero, 646-884-6425 Southwest: Mike Stone, 646-884-6430 Western: Craig Picket, 212-600-2839 Western: Gerry Santos, 949-885-8262
UBS Contact: Chris LaBianca, 212-713-4706 2016 originations: $2.43 billion 2017 originations (projected): $3.5 billion 2017 offerings (projected): 10 Originators: National: Chris LaBianca, 212-713-4706
Wells Fargo Contact: Doug Mazer, 212-214-7574 2016 originations: $4 billion 2017 originations (projected): $7 billion 2017 offerings (projected): 20 Originators: New York: Joe Tufariello, 212-214-7588 New York: Michael Sarkozi, 212-214-7614 Northeast: Jeff Schor, 212-214-7581 Northeast: Terry Livingston, 212-214-7604 Northeast: Michael Petrizzi, 212-214-7592 Mid-Atlantic: Jon Albertell, 212-214-7584 Mid-Atlantic: DJ Book, 212-214-7571 Southeast: John Tinkey, 704-715-9959 Midwest: Andrew Laughlin, 704-383-6903 Midwest: AJ Walker, 312-345-7665 Texas/Colorado: Duane Hastings, 469-729-7523 Texas: Edward Brady, 713-576-1025 Texas: Billy Hurst, 469-729-7525 Southwest: Eric Gunderson, 213-253-3065 Southwest: Todd Barnett, 949-251-4380 Southwest: Keith Williams, 213-253-3374 Northwest: William Whalen, 415-396-7415 Northwest: Eric Smith, 415-801-8553 Northwest: Courtney Boscoe, 415-801-8555 National: Wayne Brandt, 213-253-3727 Large loans: Jon Martin, 704-715-0571 Large loans: Rob Rosenberg, 212-214-7600 Large loans: Rick Oberman, 212-214-7597 Large loans: Kevin Cowan, 212-214-7589 Large loans: Bob Cade, 212-214-7598
SECURITIZATION PROGRAMS
Call: 1-212-901-0542 | Email: [email protected] www.imn.org/multifamilywest
Reference code ‘HSP’ for a 10% registration discount!
“You guys really do put on an amazing show every single time. Being in a room with such incredible talent forces me to raise my
“academic” game every time. I’m grateful and humbled to be a part and look forward to the next time.”
DERRICK GRÜNER, EXECUTIVE VICE PRESIDENT & GENERAL COUNSEL,
STRATEGIC HOLDINGS
ABA REAL ESTATE LENDING CONFERENCEMARCH 29-31, 2017 • HYATT REGENCY ORLANDO • ORLANDO, FLORIDA
Building for the Future
20/20VISION
The ABA Real Estate Lending Conference—specifically for banks in residential or commercial—delivers the tools, trends and connections you need to grow and succeed in this competitive market.
Get ready to learn from the past, shape your future and go for growth.
Register Now aba.com/REL
MULTIFAMILYDallas, TX$34,500,000
8 Year Loan Term
HOTELColumbus, OH
$31,000,00010 Year Loan Term
MEDICAL OFFICELaguna Hills, CA
$20,000,00010 Year Loan Term
RETAILSan Ramon, CA
$50,400,0005 Year Loan Term
OFFICESan Antonio, TX
$13,500,00010 Year Loan Term
MULTIFAMILYSavannah, GA
$20,500,0007 Year Loan Term
MULTIFAMILYChicago, IL
Construction Loan$52,700,000
5 Year Floating Rate
HOTELNew York, NY
Construction Loan$114,000,000
5 Year Floating Rate
RETAILCulver City, CA
Core Stable B-Note$10,000,000
10 Year Fixed Rate
INDUSTRIAL/OFFICEVarious
Preferred Equity$100,000,000
6 Year Fixed Rate
OFFICEArlington, VA
Transitional Mortgage Loan$51,600,000
5 Year Floating Rate
SENIOR HOUSINGAustin, TX
Development Preferred Equity$17,200,000
5 Year Floating Rate
u s r e a l c o . c o m
s q u a re m i l e c a p i t a l . c o m
Senior Mortgages | Mezzanine Financing | Preferred Equity | Common Equity
Fixed-rate, non recourse, senior mortgage loansLoan amounts from $10 to $60 millionTerms of 5 to 30 yearsLife company execution
Transitional bridge loans Core mezzanine loans Development loans (mortgage and mezzanine) Preferred and common equity
u ss r er e la la l c oc o . c o m
USAA Real Estate Company
USAA_SquareMile Ad Feb 2017 Ad.pdf 1 2/6/2017 11:32:39 AM
February 17, 2017 40Commercial Mortgage ALERT
Shop Expands Bridge-Loan PlatformPrivate equity shop Partners Capital has formed a joint ven-
ture to originate bridge loans.The partnership, dubbed Archway Fund, will build on Los
Angeles-based Partners Capital’s existing bridge-loan platform, which originated about $80 million of bridge loans last year.
Archway has hired originator Mark Reese to lead the effort. Reese, who previously worked at investment manager Buchanan Street Partners of Newport Beach, Calif., will eventu-ally hire additional lenders for the platform.
Partners Capital declined to identify its partner, but said it was an investment manager in the Western U.S. that brings “financial and back-office servicing resources.”
The goal over the next 12 months is to originate $100 mil-lion of floating-rate loans on all major property types on the West Coast. Balances can range from $2 million to $15 million, and loan-to-value ratios can go up to 75%.
Green ... From Page 6
doing capital improvements to drive up the rents.”Value-added investors tend to be more interested in devices
to reduce water consumption, such as efficient showerheads, than more-expensive steps like replacing windows, he added.
The agencies’ programs benefited from a surge in overall
borrowing activity last year. Freddie acquired $56.8 billion of multi-family mortgages, up 20% from 2015. And Fannie’s acquisitions totaled $55.3 billion, up 31%.
But Fannie also made the terms of its green program more attractive. When the agency began buying green loans in 2010, it accepted higher loan-to-value ratios, but didn’t offer a rate discount and required that borrowers pay for the energy audit. Few borrowers participated at first.
By 2015, Fannie was paying for the audit’s cost. And that year, it instituted a 10-bp rate discount. That fueled participa-tion and purchases climbed to $308.7 million, Pagitsas said. To boost demand further, Fannie last year increased the discount to a range of 13-39 bp on fixed-rate loans, with the exact amount based on such factors as the loan-to-value ratio and credit qual-ity. Purchases, in turn, soared to $3.6 billion, bolstered also by the decision exclude most green loans from agency purchase caps. Fannie expects to buy at least $4 billion of green loans this year, Pagitsas said.
Fannie borrowers whose properties already have energy or water-saving certifications, such as Energy Star or LEED, qual-ify for the better pricing. Others can reap savings by pledging to reduce energy and/or water usage by at least 20%. Borrowers also can get 5% more in proceeds compared to a regular loan.
Fannie has started securitizing green loans via separate bond classes (see article on Page 8).
Freddie’s main programs, Green Up and Green Up Plus, offer a rate discount of up to 30 bp if the borrower invests at least $350 per unit in efficiency improvements and commits to savings of at least 15% on water, utilities or both. Under Green Up Plus, borrowers undergo a more-rigorous energy audit and qualify for higher loan proceeds. Freddie covers up to $3,500 of the audit’s cost.
While Freddie also offers rate breaks on new properties that already have energy-efficient certifications, Leopold said the agency is putting most of its effort behind complexes undergo-ing renovations. After getting off to a fast start last year, Freddie has another $2.5 billion of green loans in its pipeline, he added.
In addition to CBRE, Freddie’s largest originators of green loans last year were Berkadia, HFF, Wells Fargo and NorthMarq. Fannie declined to disclose its top lenders.
TAPPEDINHedge Fund Alert, the weekly
newsletter that gives you an inside look at trendsetters in the
fund-management business.
Start your free trial at HFAlert.com or call 201-659-1700
• Top CMBS Underwriters • Top Loan Contributors to CMBS Deals • Top REIT-Bond Underwriters • Top Law Firms in CMBS • Top Mortgage Servicers • And many more industry rankings
View them all for FREE in the Rankings section of CMAlert.com.
Identify the Leaders In Your Business
FINANCIAL PRINTING / DIGITAL PUBLISHING / EDGAR & XBRL FILINGS
STATE-OF-THE-ART EQUIPMENT
AN EXEMPLARY SUPPORT TEAM
NO WORK STOPPAGES EVER!
FINANCIAL PRINTING • DIGITAL PUBLISHING • EDGAR & XBRL FILINGS
Contact Us Today!646-368-8033THENUVOGROUP.COM
February 17, 2017 42Commercial Mortgage ALERT
INITIAL PRICINGSINITIAL PRICINGS
BBCMS Mortgage Trust, 2017-C1 Pricing date: Feb. 16
Property types: Office (42%), retail (23.3%), hotel (15.2%), multi-family (5.9%), self-storage (4.4%), mixed-use (4.3%), manufactured housing (3.1%) and industrial (1.8%). Concentrations: California (20.6%), Florida (15.1%) and Washington (10.9%). Loan contributors: Barclays (43.4%), UBS (29.7%) and Rialto (26.9%). Largest loans: A $61 million loan to Allen Morris Co. on the 174,000-sf Alhambra Towers office building in Coral Gables, Fla.; a $56.3 million senior portion of a $110 million loan to Edward J. Minskoff Equities on 195,000 sf of office condominiums at 1166 Avenue of the Americas in Manhattan; a $56 million loan to H5 Data Centers on the 263,000-sf office building at 1000 Denny Way in Seattle; a $50 million portion of a $208 million loan to Bayer Properties and a Calpers partnership on the 1 million-sf Summit lifestyle center in Birmingham, Ala.; a $41.5 million portion of a $103.6 million loan to Atalaya Capital and Capital Commercial Investments on three office buildings, encompassing 554,000 sf, at 1300, 1350 and 1400 Merrill Lynch Drive in Hopewell, N.J.; a $38.3 million loan to Mark Corlew and Anuj Grover on the 637,000-sf Orlando Central office park in Orlando; a $37 million portion of a $139 million loan to Calpers and GI Partners on the 291,000-sf Komo Plaza mixed-use complex in Se-attle; a $30 million portion of an $80 million loan to Kambiz Hekmat on the 349,000-sf Center West office building in Los Angeles; and a $30 million portion of a $54 million loan to Landmark Cos. on the 371-room Anaheim Marriott Suites. B-piece buyer: Rialto Capital. Risk retention consultation party: Rialto Capital. Notes: Barclays, UBS and Rialto teamed up to securitize commercial mortgages they had originated. To comply with risk-retention rules, Rialto is retaining 5% of each class. Deal: BBCMS 2017-C1. CMA code: 20170022.
Closing date: Feb. 27
Amount: $855.7 million
Seller/borrower:
Barclays,
UBS,
Rialto Capital
Lead managers: Barclays,
UBS
Co-manager: Academy Securities
Master servicers: Wells Fargo,
Midland Loan Services
Special servicers:
Rialto Capital,
Midland Loan Services,
LNR Partners
Operating advisor: Park Bridge Lender Services
Trustee: Wilmington Trust
Certificate administrator: Wells Fargo
Offering type: SEC-registered
Amount Rating Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread Note Class ($Mil.) (Moody's) (Fitch) (DBRS) (%) (%) Price (%) (Date) (Years) (bp) Type A-1 22.421 Aaa AAA AAA 30.00 2.010 99.998 1.988 2/15/50 2.62 S+30 Fixed A-2 66.989 Aaa AAA AAA 30.00 3.189 102.998 2.526 2/15/50 4.91 S+50 Fixed A-3 152.632 Aaa AAA AAA 30.00 3.412 100.995 3.300 2/15/50 9.78 S+92 Fixed A-4 319.560 Aaa AAA AAA 30.00 3.674 102.993 3.324 2/15/50 9.88 S+94 Fixed A-SB 37.421 Aaa AAA AAA 30.00 3.488 102.994 3.037 2/15/50 7.47 S+79 Fixed A-S 66.320 Aa3 AAA AAA 22.25 3.898 102.999 3.549 2/15/50 9.97 S+116 Fixed B 43.857 NR AA- AA 17.13 4.089 102.996 3.739 2/15/50 9.97 S+135 Fixed C 38.509 NR A- A (low) 12.63 4.441 98.992 4.589 2/15/50 9.97 S+220 Fixed D 43.857 NR BBB- BBB (low) 7.50 3.510 76.799 6.889 2/15/50 9.97 S+450 Fixed E 21.394 NR BB- BB 5.00 2/15/50 9.97 Fixed F 8.557 NR B- B (high) 4.00 2/15/50 9.97 Fixed G 8.558 NR NR B (low) 3.00 2/15/50 9.97 Fixed H 25.673 NR NR NR 0.00 2/15/50 9.97 Fixed X-A(IO) 599.023* Aaa AAA AAA 2/15/50 Fixed X-B(IO) 110.177* NR A- AAA 2/15/50 Fixed X-D(IO) 82.366* NR BBB- AAA 2/15/50 Fixed X-E(IO) 21.394* NR BB- AAA 2/15/50 Fixed X-F(IO) 8.557* NR B- AAA 2/15/50 Fixed X-G(IO) 8.558* NR NR AAA 2/15/50 Fixed X-H(IO) 25.673* NR NR AAA 2/15/50 Fixed *Notional amount
A BALANCE SHEET LENDER
Offering flexible and customized financing solutions
Floating & Fixed rate
T: 212-696-0100 | www.annaly.com 1211 Avenue of the Americas, New York, NY 10036
Annaly Commercial Real Estate Group (ACREG) is a wholly-owned subsidiary of Annaly Capital Management, Inc. (NYSE:NLY)
FIRST MORTGAGES MEZZANINE LOANS B- NOTES PREFERRED EQUITY
February 17, 2017 44Commercial Mortgage ALERT
Simon ... From Page 1
America is the lead lender and administrative agent for the cur-rent mortgage, and the other participants are known to include Fifth Third Bank, Landesbank Baden-Wurttemberg, MUFG, PNC and U.S. Bank. The loan is set to mature next January, although there are two single-year extension options.
The Simon team has been redeveloping the property in phases over the past few years, and the enlarged loan included a $60 million component for construction costs. The ongoing work has involved adding a Nordstrom depart-ment store, which opened in late 2015, and another 400,000 sf of retail space while demolishing some older space. Other stores are set to open this year as new space comes online.
Occupancy overall has increased in recent years. The in-line
space was 80.1% leased at the end of 2013. A source familiar with the loan request said that space is now about 95% occupied, and generates annual sales in the range of $600/sf. In addition to Nordstrom, the mall’s anchors are Burlington Coat Factory, JC Penney, Macy’s, Marshalls and Sears.
The current ownership structure resulted from a series of transactions that began in 2004 when Mills Corp., which had owned the mall outright, sold a 50% stake to J.P. Morgan Flem-ing. In 2007, Mills, a mall REIT based in Alexandria, Va., was acquired by Farallon and Simon in a $7.9 billion deal. Simon increased its stake in Del Amo Fashion Center in 2012, appar-ently by buying part of J.P. Morgan’s interest.
The mall is one of the five largest in the U.S. On the West Coast, it is second only to the 2.8 million-sf South Coast Plaza, about 30 miles to the southeast in Costa Mesa, Calif.
INITIAL PRICINGS
One Market Plaza Trust, 2017-1MKT Pricing date: Feb. 15
Property types: Office (100%). Concentrations: California (100%). Loan contributors: Goldman (40%), Barclays (20%), Deutsche (20%) and Morgan Stanley (20%). Risk retention consultation party: Goldman. Notes: Goldman, Barclays, Deutsche and Morgan Stanley teamed up to securitize a $975 million fixed-rate mortgage they had originated for Paramount Group and Blackstone on the One Market Plaza office complex in San Francisco. The 1.6 mil-lion-square-foot property was appraised at $1.77 billion. Paramount has a 51% own-ership interest, and Blackstone holds the remaining 49% stake. The interest-only loan, originated on Jan. 19, has a seven-year term and a 4.03% coupon. Paramount and Blackstone used $896.7 million of the proceeds to retire existing debt. After factoring in closing costs and reserves, Paramount and Blackstone had $44.5 million left over. Oxford Properties is fulfilling the risk-retention requirement by acquiring Class HRR at a price that equals 5% of the total deal proceeds. The tranche’s pro-jected yield is 6.3%. Deal: OMPT 2017-1MKT. CMA code: 20170023.
Closing date: Feb. 28
Amount: $975 million
Seller/borrower: Paramount Group,
Blackstone
Lead managers:
Goldman Sachs,
Barclays,
Deutsche Bank,
Morgan Stanley
Master servicer: Wells Fargo
Special servicer: Wells Fargo
Operating advisor: Park Bridge Lender Services
Trustee: Wilmington Trust
Certificate administrator: Wells Fargo
Offering type: Rule 144A
Amount Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread Note Class ($Mil.) (S&P) (Kroll) (%) (%) Price (%) (Date) (Years) (bp) Type A 463.732 AAA AAA 52.44 3.614 103.000 3.142 2/10/32 6.94 S+90 Fixed B 103.051 AA- AA+ 41.87 3.845 103.000 3.372 2/10/32 6.94 S+113 Fixed C 77.289 A- A+ 33.94 4.016 103.000 3.542 2/10/32 6.94 S+130 Fixed D 94.807 BBB- BBB+ 24.22 2/10/32 6.94 Fixed E 128.815 BB- BB+ 11.01 2/10/32 6.94 Fixed F 55.406 B BB 5.32 2/10/32 6.94 Fixed HRR 51.900 B- BB- 0.00 2/10/32 6.94 Fixed X-CP(IO) 738.879* BBB- AAA 2/10/32 Fixed X-NCP(IO) 738.879* BBB- AAA 2/10/32 Fixed X-E(IO) 236.121* B- BB- 2/10/32 Fixed *Notional amount
INITIAL PRICINGS
February 17, 2017 46Commercial Mortgage ALERT
Horizontal ... From Page 1
L-shape strip, which combines the vertical and horizontal options.
J.P. Morgan has long been exploring the horizontal-strip option, because that structure enables it to pass the risk-reten-tion responsibility off to the B-piece holder. While the other major issuers have shown a willingness to retain at least some exposure to their deals, J.P. Morgan appears to be averse to doing so unless absolutely necessary. Because J.P. Morgan is the biggest contributor of loans to conduit deals, rivals are closely watching how it proceeds.
Late last year, J.P. Morgan was in talks to conduct a hori-zontal-option deal with BlackRock. J.P. Morgan would have supplied all of the collateral loans, and BlackRock would have taken down the horizontal strip. One stumbling block was the difficulty of reaching an agreement on the guarantees, or indemnifications, that BlackRock would provide to protect J.P. Morgan against any liabilities that might arise if BlackRock failed to fulfill the risk-retention responsibilities.
J.P. Morgan then moved on to Starwood and LNR. Under the
current plan, the transaction will be floated via a J.P. Morgan shelf (JPMCC 2017-JP5). Because Starwood is contributing at least 20% of the collateral pool, it can serve as the “retaining sponsor.”
By working with Starwood/LNR, J.P. Morgan is avoiding the need to sell the horizontal strip to a “third-party purchaser,” like BlackRock. Because the retaining sponsor (Starwood) and retention holder (LNR) are in effect the same company, the need for guarantees is reduced.
“I wouldn’t say the indemnification matter goes away entirely,” said one source familiar with the approach, “because if the deal is done on J.P. Morgan’s shelf and there’s a violation later on, the SEC could look at the shelf owner for some respon-sibility. But they’d probably be a lot more interested in going after the issuer. That makes more sense.”
J.P. Morgan sought risk-retention bids under both the verti-cal and horizontal options. LNR’s offers were acceptable both ways, so J.P. Morgan committed to work with Starwood and LNR, but left open which approach would be used. The deci-sion will be based on which option is expected to generate the maximum bond proceeds.
INITIAL PRICINGSINITIAL PRICINGS
Fannie Mae Multifamily REMIC Trust, 2017-M2 Pricing date: Feb. 15
Property types: Multi-family (99.7%) and manufactured housing (0.3%). Concentrations: Texas (36.1%), Georgia (13.7%) and California (11.8%). Largest loans: A $40 million loan on the Park at Salisbury in Midlothian, Va.; a $39.4 million loan on the Mason at Hive in Oakland; a $37.4 million loan on Solaire Apartments in Brighton, Colo.; a $36.6 million loan on Rockwood at the Cascades Apartments in Sylmar, Calif.; and a $33.3 million loan on Galleria Apartments in Fountain Valley, Calif. Notes: Fannie securitized 69 multi-family mortgages that had been originated by its pre-approved lenders. The collateral was divided into two pools, which back separate clas-ses. Group 1, which backs Classes F-A and F-X(IO), contains 39 floating-rate, seven-year mortgages that total $393.3 million and have a weighted average seasoning of one month. Group 2, which backs Classes A-1 and A-2, contains 30 fixed-rate, 10-year “green” mortgages that total $611.7 million and have a weighted average seasoning of two months. This is the first time that Fannie has structured classes backed solely by green loans (see articles on Pages 6 and 8). Fannie guaranteed all of the bonds. Deal: FNA 2017-M2. CMA code: 20170028.
Closing date: Feb. 28
Amount: $1,005.0 million
Seller/borrower: Fannie Mae
Lead manager: Citigroup
Co-managers:
Nomura,
KGS-Alpha Capital,
CastleOak Securities
Trustee: Fannie Mae
Certificate administrator: Fannie Mae
Offering type: Fannie/Freddie/Ginnie
Amount Coupon Dollar Yield Maturity Avg. Life Spread Note Class ($Mil.) (%) Price (%) (Date) (Years) (bp) Type F-A 393.281 1.299 99.913 2/25/24 6.51 L+53 Floating F-X(IO) 393.281* 0.582 2/25/24 0.87 Floating A-1 75.000 2.784 100.968 2.685 9/25/26 6.06 S+50 Fixed A-2 536.703 2.784 97.827 3.086 2/25/27 9.82 S+66 Fixed *Notional amount
February 17, 2017 47Commercial Mortgage ALERT
WORLDWIDE CMBS
US CMBS
LOAN SPREADS
ASKING SPREADS OVER TREASURYS ASKING OFFICE SPREADS
REIT BOND ISSUANCE
UNSECURED NOTES, MTNs ($Bil.) MONTHLY ISSUANCE ($Bil.)
Data points for all charts can be found in The Marketplace section of CMAlert.com
0
10
20
30
40
50
60
70
80
90
100
110
J F M A M J J A S O N D
2017
2016
MONTHLY ISSUANCE ($Bil.)
0
3
6
9
12
15
D J F M A M J J A S O N D J F
Spread (bp) New Issue
Fixed Rate Avg. Week 52-wk (Conduit) Life 2/15 Earlier Avg.
AAA 5.0
10.0 S+45
S+93 S+49 S+97
72 118
AA 10.0 S+127 S+127 187
A 10.0 S+191 S+215 296
BBB- 10.0 S+469 S+483 610 Dollar Price Week 52-wk Markit CMBX 6 2/15 Earlier Avg.
AAA 99.9 99.8 98.9
AS 100.8 100.7 99.0
AA 98.9 98.7 97.7
A 97.2 96.6 95.8
BBB- 90.7 90.3 92.9
BB 83.0 82.1 86.3 Sources: Trepp, Markit
Month 2/10 Earlier
Office 157 159
Retail 155 151
Multi-family 148 146
Industrial 153 151 Source: Trepp
130
140
150
160
170
180
190
200
M A M J J A S O N D J F
10-year loans with 50-59% LTV
CMBS TOTAL RETURNS
CMBS INDEX
Total Return (%)
Avg. Month Year Since As of 2/15 Life to Date to Date 1/1/97
Inv.-grade 6.1 -0.3 0.4 221.4
AAA 5.9 -0.3 0.2 205.1
AA 7.5 -0.3 0.7 97.1
A 6.9 0.3 1.7 85.5
BBB 7.0 -0.2 3.3 96.4 Source: Barclays
05
10152025303540
J F M A M J J A S O N D
2017
2016
01234567
D J F M A M J J A S O N D J F
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
M A M J J A S O N D J F
NEW-ISSUE SPREAD OVER SWAPS
CMBS SPREADS
10-Year AAA
WORLDWIDE CMBS ISSUANCE ($Bil.)2016 2017
01/06/00 J 0.0 0.0 Year-to-date volume ($Bil.)
01/13/00 0.1 0.2 2017 2016
01/20/00 0.2 0.4 US 5.4 7.4
01/27/00 0.9 2.1 Non-US 0.0 0.0
02/03/00 F 3.3 3.4 TOTAL 5.4 7.4
02/10/00 6.1 3.602/17/00 7.4 5.402/24/00 10.303/02/00 M 11.403/09/00 13.203/16/00 14.603/23/00 16.003/30/00 17.804/06/00 A 19.804/13/00 20.104/20/00 20.904/27/00 22.405/04/00 22.405/11/00 M 24.305/18/00 26.205/25/00 29.906/01/00 30.106/08/00 30.206/15/00 J 31.106/22/00 31.306/29/00 31.807/06/00 32.607/13/00 J 33.507/20/00 35.807/27/00 36.308/03/00 38.008/10/00 A 39.508/17/00 42.408/24/00 42.408/31/00 42.409/07/00 42.409/14/00 S 42.809/21/00 45.909/28/00 48.810/05/00 51.310/12/00 52.310/19/00 O 53.310/26/00 54.411/02/00 58.211/09/00 63.511/16/00 65.211/23/00 N 67.911/30/00 71.312/07/00 71.912/14/00 76.5
MARKET MONITOR
xxx 1Commercial Mortgage ALERT
AGENCY CMBS SPREADS
FREDDIE K SERIES Spread (bp)
Avg. Week 52-wk Life 2/16 Earlier Avg.
A1 5.5 S+49 S+48 59
A2 10.0 S+62 S+60 74
B 10.0 S+240 S+225 315
C 10.0 S+355 S+395 519
X1 9.0 T+160 T+160 232
X3 10.0 T+375 T+375 603
Freddie K Floater L+44 L+46 Week 52-wk 2/16 Earlier Avg.
10/9.5 TBA (60-day settle) S+70 S+71 83
Fannie SARM L+44 L+46 Source: J.P. Morgan
FANNIE DUS
Spread (bp)
Avg. Week 52-wk Life 2/16 Earlier Avg.
A1 5.5 S+49 S+48 59
A2 10.0 S+62 S+60 74
B 10.0 S+240 S+225 315
C 10.0 S+355 S+395 519
X1 9.0 T+160 T+160 232
X3 10.0 T+375 T+375 603
Freddie K Floater L+44 L+46 Week 52-wk 2/16 Earlier Avg.
10/9.5 TBA (60-day settle) S+70 S+71 83
Fannie SARM L+44 L+46 Source: J.P. Morgan
TO SUBSCRIBE
Signature:
COMMERCIAL MORTGAGE ALERT www.CMAlert.com
THE GRAPEVINE... From Page 1
Telephone: 201-659-1700 Fax: 201-659-4141 Email: [email protected]
Donna Knipp Managing Editor 201-234-3967 [email protected] Darragh Senior Writer 201-234-3970 [email protected] Mura Senior Writer 201-234-3978 [email protected] Weihrauch Senior Writer 201-234-3988 [email protected] Quinn Senior Writer 201-234-3997 [email protected]
Andrew Albert Publisher 201-234-3960 [email protected] Cowles General Manager 201-234-3963 [email protected] J. Ferris Editor 201-234-3972 [email protected] Murphy Deputy Editor 201-234-3975 [email protected] Lebowitz Operations Director 201-234-3977 [email protected] Grauer Database Director 201-234-3987 [email protected] Alexander Database Manager 201-234-3993 [email protected] E. Romano Advertising Director 201-234-3968 [email protected] Hardiman Advertising Manager 201-234-3999 [email protected] Renee Selnick Layout Editor 201-234-3962 [email protected] Eannace Marketing Director 201-234-3981 [email protected] Tassie Customer Service 201-659-1700 [email protected]
Commercial Mortgage Alert (ISSN: 1520-3697), Copyright 2017, is published weekly by Harrison Scott Publications, Inc., 5 Marine View Plaza, Suite 400, Hoboken, NJ 07030-5795. It is a violation of federal copyright law to reproduce any part of this publication or to forward it, or a link to it (either inside or outside your company), without first obtaining permission from Commercial Mortgage Alert. We routinely monitor usage of the publication with tracking technology. Subscription rate: $5,597 per year. To expand your distribution rights, contact us at 201-659-1700 or [email protected].
YES! Sign me up for a one-year subscription to Commercial Mortgage Alert at a cost of $5,597. I understand I can cancel at any time and receive a full refund for the unused portion of my 46-issue license.
DELIVERY (check one): q Email. q Mail.
PAYMENT (check one): q Check enclosed, payable to Commercial
Mortgage Alert. q Bill me. q American Express. q Mastercard.
q Visa.
Account #:
Exp. date:
Name:
Company:
Address:
City/ST/Zip:
Phone:
E-mail:
MAIL TO: Commercial Mortgage Alert www.CMAlert.com 5 Marine View Plaza #400 FAX: 201-659-4141 Hoboken NJ 07030-5795 CALL: 201-659-1700
February 17, 2017 48Commercial Mortgage ALERT
post. MacManus, working from Boca Raton, Fla., is focused on expanding the Boise, Idaho, firm’s client roster and deepening its existing relationships. MacManus was formerly president and chief operating officer of ARA Finance, a joint venture between Apartment Realty Advisors and Walker & Dunlop that shut down in 2015. Before that, he was an executive vice president at Cushman & Wakefield and had a nine-year run at GMAC Commercial Mortgage.
Originator Mitchell Voss has agreed to join KeyBank after he completes a “gardening leave” from Goldman Sachs. Voss will start in early April as a regional vice president in Dallas, working alongside senior originator Joe Schmidt, who joined in December from UBS. The team originates com-mercial and multi-family loans for securitization, separate accounts and the bank’s balance sheet. Voss spent more than two years at Goldman and previously worked at UBS and Deutsche Bank. At Key, he reports to
Matthew Ruark, head of commercial and healthcare lending.
Capital One has also hired a former Prudential Mortgage Capital pro. Evan Williams joined the bank last month as a senior vice president in New York. He originates agency loans on affordable housing nationally. Williams reports to Jeff Lee, executive vice president of multi-family finance.
Former Kroll analyst Michael Haas rejoined the agency on Wednesday as a director, the same title he held before leaving last July to work on a home-remodeling startup. He’s now part of a 13-member team led by managing director Troy Doll, who oversees surveil-lance of commercial MBS rated by Kroll at issuance. Haas previously worked for managing director Steve Kuritz, who runs a subscription service that provides monthly surveillance reports on all outstanding CMBS. Haas first joined Kroll as an associate in 2013 after spending about three years apiece at Morningstar and KPMG.
Carl Pankratz has jumped from Hunt Mortgage to NorthMarq Capital in
Dallas. He started this month as vice president of commercial real estate, originating agency loans and lining up debt from banks, insurers, securitiza-tion programs and bridge lenders. Before joining Hunt in 2014, Pankratz was a councilman and deputy mayor pro tem of the city of Rowlett, Texas, and had earlier stints at title companies. At NorthMarq, he reports to executive vice president Jeffrey Erxleben.
BBVA Compass wants to add an experienced originator in Dallas. Candidates should have worked for at least five years originating commercial mortgages. The recruit would report to Curtis Burchard, who manages activity in the Central U.S. Burchard can be reached at [email protected] or 713-993-8569.
John Hancock is looking for an investment officer to join the real estate finance group at its Boston headquarters. Candidates should have five years of experience in a similar role, and familiarity with underwriting, negotiating and structuring commercial mortgages. Contact Tom Treacy at [email protected].
