New Issue Calendar

February - 4 deals, $2.105b. Including a Distressed Loan deal from Rialto Capital worth $200mm

March - 7 deals, $5.9b. Also one Distressed loan deal from Blackstone and Square Mile Capital.

April - 3 deals, $2.75b

Blackstone/DDR buying EPN Portfolio fka Maquarie/DDR

CMAlert reported that Blackstone and DDR partnered to buy the 46 property, 10.6mm sf, EPN Group's retail portfolio for $1.4b, assuming mortgages on most of the properties, and using 3.9mm of the sf from 15 properties to back a loan used in the acquisition.

EPN took out Macquarie's interest in Macquarie DDR Trust in April 2010, and then took out DDR's interest in 2011, and DDR (the other partner in Macquarie DDR Trust) is now partnering with Blackstone (actually, its Blackstone Real Estate Partners VII Fund) to buy all the assets. The partnership will be 95/5 in Blackstone's favor, and DDR will also own a substantial (~10%) preferred equity slice.

The shopping-center portfolio represents the bulk of the assets of the former Macquarie DDR Trust, a joint venture between Macquarie Group of Australia and DDR, a shopping-center developer in Beachwood, Ohio. In 2010, EPN acquired a majority stake in Macquarie DDR, which was renamed EDT Retail. EPN took full control a few months ago. EPN, which is based in Skokie, Ill., was formed in 2009 by Alex Berman, a former executive of General Growth Properties.

Guggenheim partnering with DB and Ladder on CMBS deal coming in February

via CMA

Astounding! Rare! May be in Jeapordy!

Big impact words used in multiple articles about loan that sells for more than it's outstanding mortgage balance:

The DJ News headline characterizes it as "rare",

CMBS Investors Get Rare Payoff On '07 Loan

DB says,

Harris Trifon, a commercial mortgage bond strategist at Deutsche Bank, characterized the sale as "astounding"

DJ states,

By actually turning a profit on the loan, which it has been trying to resolve for three years, troubled-loan specialist firm CW Capital Asset Management has demonstrated that in some cases, patience pays.

It sure does! They charged $10.6mm in fees! That is like 14.5% of the loan's balance - not only did they manage to not get sued by the CMBS trust holders, support their own weakened B-Piece position, make a great deal with BlackRock and Korman (the buyers), but they completely ripped the face off the sponsor while he was down. Awesome! Riveting!


Do you know what else is rare and astounding? The Ossabaw Island Hog. Pig roast anyone?

Freddie SPC K-705 $1.222b

Joint Bookrunners: Credit Suisse, BofA Merrill Lynch
Co-Managers: Barclays, CastleOak Securities, Jefferies, J.P. Morgan

Rating Agencies: Fitch, Moody's

Expected Principal
Class Fitch/Moody's Size ($MM) WAL (yrs) Window (mos) Price Guidance
A-1 AAA(sf)/Aaa(sf) $95.000 3.99 1-77 sw+40
A-2 AAA(sf)/Aaa(sf) $936.317 6.60 77-79 sw+55-60

Cut-off Balance: $1.222B
Collateral: 70 Loans / 70 Properties

GSMS 2012-GC6 - $808.03mm - Goldman, Citi - Priced

The first deal of the year has been priced...

Class Fitch/Mdy Size($mm) WAL(yr) Spread
A1 AAA(sf)/Aaa(sf) 65.525 2.32 S+65
A2 AAA(sf)/Aaa(sf) 82.190 4.53 S+110
A3 AAA(sf)/Aaa(sf) 570.467 9.57 S+120
A-AB AAA(sf)/Aaa(sf) 89.850 7.18 S+135

575 Lex Under Contract

Nomura and Barclays both stated this loan is under contract, pointing out that the reported sales price of $370mm is well north of the $257mm loan balance and the most recent appraisal. Nomura referenced a Bloomberg story, but I missed it.

My absence tends to fuel market rallies, based on historical evidence, so I wanted to let everyone know I'm taking off for the rest of the week. You may want to load up on bonds before the day is over.