CMBS

  • Lease rollover risk scrutinised

    Near-term lease expiries appear to be a manageable risk for many of the five-year US CMBS loans maturing this year, according to CMBS strategists at Citi. However, lease expirations ramp up dramatically from 2015, with office expirations for example jumping to 19.7% that year from 11% in 2014.

    Citi research suggests that, in aggregate, leases on about 10% of occupied .......

    News 9 March 2012

  • Atlanta offices drive CMBS delinquencies

    Increasing difficulties for office properties, most notably in Atlanta, overshadowed what was otherwise a flat February for US CMBS delinquencies overall, according to Fitch's latest US CMBS Loan Delinquency Index results.

    CMBS late-pays fell by 2bp last month to 8.3% from 8.32% a month earlier. The decline was led by a large hotel loan that was brought current. However, office .......

    News Round-up 9 March 2012

  • Multifamily CMBS lags recovery

    The recovery being seen in the US apartment sector hasn't trickled down to multifamily CMBS, according to a new report from S&P. The rating agency notes that despite a solid recovery that includes a 5% annualised rise in apartment rents through 4Q11, delinquencies for multifamily CMBS are still near record highs.

    Although the delinquency rate had declined to 13.58% of .......

    News Round-up 9 March 2012

  • CMBS loan liquidations retreat

    The volume of CMBS conduit loans liquidated in February retreated sharply, falling by 43% from January's reading, according to Trepp. In fact, the February reading was the lowest total since November 2010.

    At US$893m, liquidations were about 32% below the 12-month moving average of US$1.31bn per month, Trepp says. Since the beginning of 2010, special servicers have been liquidating at .......

    News Round-up 8 March 2012

  • GRAND plan nears

    Substantial progress has been made in discussions between Deutsche Annington (DAIG) and the ad hoc noteholder group over restructuring the GRAND CMBS (SCI passim). A plan to extend the transaction through a solvent scheme of arrangement is "near finality" and is expected to be proposed to all noteholders in the coming weeks.

    DAIG reportedly plans to refinance €500m of the .......

    News 8 March 2012

  • MBS vet becomes REIT president

    Byron Boston has been promoted to president and appointed to the board of directors at Dynex Capital. He joined Dynex four years ago as cio and will retain those duties alongside his new role.

    Boston has three decades of experience in the industry, having begun as a banker and MBS trader for Chemical Bank, Credit Suisse First Boston and Lehman Brothers. .......

    Job Swaps 6 March 2012

  • Real estate debt head named

    John Feeney has joined Henderson Global Investors as head of real estate debt in its secured credit team. He will work with the firm's property business and fixed income team to drive business growth in real estate debt.

    Feeney has been involved in CRE since 2004. He was a co-founder of Bank of America's European and Asian real estate lending .......

    Job Swaps 5 March 2012

  • WOBA dispute settled

    Gagfah and the City of Dresden have agreed an amicable settlement to end the legal dispute over the WOBA loan securitised in Windermere IX and DECO 14 - Pan Europe 5. The settlement is subject to approval by the City Council of Dresden and clearance by the City's legal supervision authority, which is expected to be finalised by 15 March.

    News Round-up 5 March 2012

  • CMBS delinquency rate falls in February

    The Trepp delinquency rate for US CRE loans in CMBS fell by 15bp in February to 9.37%. The value of delinquent loans is now U$56.4bn.

    In February, the value of loans being resolved with losses was under US$1bn and, while significantly less than the US$1.6bn in January, contributed about 15bp of downward pressure on the delinquency rate. The rate was .......

    News Round-up 5 March 2012

  • Multifamily contradiction highlighted

    An apparent contradiction in US multifamily CMBS performance has emerged over the last few years, according to Fitch.

    "As an asset class, multifamily has been one of the fastest types of commercial property to bounce back from the effects of the 'Great Recession'. Occupancies have increased, rents have begun to increase and concessions such as free rent have decreased. Yet, .......

    News Round-up 5 March 2012

  • CRE vet joins board

    Arbor Realty Trust has appointed William Green to its board of directors as an independent member, effective immediately. He has 29 years of experience in CRE, including as co-founder and managing partner of Tannery Brook Partners and co-founder and managing member of Cazenovia Creek Investment Management.

    Green has previously served as member at Starwood Capital Group responsible for the debt .......

    Job Swaps 1 March 2012

  • Yield boost

    CMBS extension trades gaining traction

    US special servicer activity has risen over the past two months, resulting in approximately US$3.7bn newly-modified loans. With term extensions being the most common modification strategy, investors are increasingly looking to CMBS extension trades to boost yields.

    According to FTN Financial data, across the three largest special servicers, term extensions represent over 70% of LNR Partners' loan modification book and .......

    News Analysis 1 March 2012

  • 'Quiet' month ahead for Euro CMBS maturities

    Fitch says in its latest European CMBS bulletin that like February, March 2012 will be a quiet month for scheduled loan maturities.

    Only one loan is due to mature, The Zeloof Partnership, securitised in Victoria Funding (EMC-III) and serviced by Capita Asset Services (Ireland). The servicer has indicated that the borrower's intention is to repay the loan in full at .......

    News Round-up 1 March 2012

  • Euro CMBS trading up

    The European secondary CMBS market has been trading up recently. Investor demand is particularly focused on the top of the capital structure, although not necessarily only for top-quality deals, while BWIC activity has also been strong.

    "There has certainly been some activity in the market and it is trading up. That has been the trend for a while now, with .......

    Market Reports 28 February 2012

  • Time in special servicing on the rise

    US CMBS loans are spending more time in special servicing, according to a new report from Fitch.

    The number of months in special servicing has increased to 16.9 months on average as of year-end 2011 from 12.8 as of year-end 2010 and 9.02 as of year-end 2009. Fitch says the increase in time is due to several factors, including unprecedented .......

    News Round-up 24 February 2012

  • Kroll publishes multi-borrower criteria

    Kroll Bond Rating Agency (KBRA) has published its methodology for rating US CMBS multi-borrower transactions. It will typically be used for transactions with at least 30 loans that are secured by properties that are diverse relative to the geographic location, property type and sponsor.

    KBRA says it developed the criteria with several guiding principles, the most important of which was .......

    News Round-up 24 February 2012

  • Loan transfer disputed

    Hatfield Philips, the original special servicer on DECO 8 - UK Conduit 2, has disputed the transfer of special servicing of eight of the 14 loans backing the transaction to Solutus Advisors. The development is said to have significant implications for the rights of junior noteholders of the deal.

    Hatfield Philips says that it is in discussions with the issuer .......

    News Round-up 24 February 2012

  • Dutch CMBS risks highlighted

    Recent developments in Dutch CRE loans highlight the risks in the sector and the potential impact on European CMBS transactions, Fitch reports.

    Prime asset values appear to have stabilised, but secondary commercial real estate values continue to decline in the Netherlands, the agency says. A combination of falling rental levels - driven by declining occupier demand, sustained high vacancy and .......

    News Round-up 24 February 2012

  • Purchase to create CRE 'powerhouse'

    Grubb & Ellis has agreed to sell substantially all of its assets to BGC Partners. The acquisition will bring Grubb & Ellis the enhanced scale and resources it has been seeking since it began looking for a buyer almost a year ago (see SCI 23 March 2011).

    "Following a thorough and rigorous process and the evaluation of all available options, we .......

    Job Swaps 22 February 2012

  • CMBS LFM risk identified

    European asset-backed analysts at RBS have identified another European CMBS that is at risk of not paying off at legal maturity in April 2013, following the default of Opera Finance (Uni-Invest) last week. However, the likelihood of other deals defaulting at legal final beyond that date appears harder to predict.

    The convention in European CMBS has been to set legal .......

    News Round-up 21 February 2012

  • DQT dips by 2bp

    The delinquency rate on loans included in US CMBS conduit/fusion transactions slipped by 2bp in January to 9.3%, according to Moody's Delinquency Tracker (DQT). The rate of loans in special servicing, as measured by Moody's Specially Serviced Loan Tracker, increased by 1bp in January to 11.98%.

    January was the 13th consecutive month that delinquencies in the US have been above .......

    News Round-up 21 February 2012
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