Friday, October 29, 2010

First Euro CMBS Resecuritization

Not clear of the exact structure, but Bloomberg reports (sorry no link) that HSBC and Lazuli are issuing the $119mm deal backed by a portion of the current pay A tranche (Caa1/CCC/BB+ rated currently) from Gemini (Eclipse 2006-3).

The deal is backed by 36 properties stretching from London (12%) to Wales and up into Scotland. The loan was reappraised in '08 at $801mm, or 94.2% current LTV, breaching the 80% LTV covenant - apparently, there was a September '10 revaluation too which brought the current LTV to 106.11%.

Wednesday, October 27, 2010

Ackman/Winthrop Sells PCV/ST Stake to CWCapital

Water Tower Place refis, some bondholders lose

Former Rouse, GGP Mall in Chicago. This was the typical GGP mall with a high DSCR, low leverage (relatively speaking) and good tenants (again, relatively speaking. Matured 9/2010, but they were able to refinance the $131.5mm pari passu CMBS note on 9/28 with a new $200mm loan from Met Life according to Crain's (sorry no link).

The loan was permitted to get mezzanine financing, but frankly I don't know if it did. Regardless, it definitely refinanced into a substantially larger loan giving proceeds back to GGP. It's a little frustrating that bond holders had to eat a $1.2mm loss as both Trusts were charged substantial fees.

Tuesday, October 26, 2010

WFCM 2010-C1 - $735mm

Presale and Structure are out (10/22), talk out 10/26

Class Fitch/MDYs Size ($mm) WAL (yrs) C/E Talk
A-1 AAA/Aaa 162.00 5.05 17.80 +125
A-2 AAA/Aaa 443.25 9.71 17.80 +135
B AA/Aa2 22.08 9.91 14.80 +230
C A/A2 31.28 9.91 10.50 +300
D BBB/Baa3 34.03 9.93 5.90 +400
E Ba2/BBB- 13.80
F B2/B 12.88
G NR/NR 16.56
X-A AAA/Aaa 605.25

X-B NR/Aaa 130.62

UPDATED: As soon as I said "no talk yet", it trickled out.

This is basically a Fusion-Lite deal with 37 loans (59 props) and an average loan size of $19mm (max=185mm, min=3.3mm, Top10=64%).

BALL 2010-HLTN ($2.664bln)

Old Hilton collateral being securitized. Structure is one pass-through note $2.664bln offered ($406mm non-offered interests), 2.86 WAL, 4.54 fully-extended WAL, L+175 coupon.

You'll recall that the toal debt is a whopping $20.6 billion (orig face, $19.256 outstanding) from the $25 billion buyout by Blackstone at the peak. This consists of a nearly $9 billion senior mortgage ($2.664 of which is going in this BALL 2010-HLTN deal), and then another $10 billion-ish of mezzanine debt (9 tranches) and unsecured debt ($666mm). The debt was restructured some, including the retirement of $1.79billion of mezz debt - total outstanding today = $17.4mm. There's also another couple-to-three billion of subordinate loans.

Tuesday, October 19, 2010

Multiple New Issue - WFCM 2010-C1 ($735mm); Hilton; Extended Stay

WFCM 2010-C1 ($735mm) was announced today - first issue off the new shelf for Wells. Collateral is 37 loan, 59 properties, 43.5% BOA, 43% WF, 13.4% Basis RE Cap 2. More to come...

Also, the WSJ reported today that the two largest Hotel CMBS clusterf*cks are coming back with new issues.

Hilton is purportedly first in line with $3bln (this is original debt, still on BOA & GS books).

Extended Stay is then expected out with $2bln before November to partly fund the $3.9bln buyout by Centerbridge/Paulson/Blackstone.

Monday, October 18, 2010

ProLogis selling top tier properties to Blackstone

Bloomberg reported that ProLogis is selling some of its best properties to Blackstone in a $1.02billion sale that includes 180 industrial properties, 3 stakes in real estate funds, and a minority stake in the Hilton New Orleans Riverside Hotel - to close in mid-November.

Villas Parkmerced - CD 2006-CD2 - $550mm

This month's remit reports a 4 month extension until 2/15/2011 (because things will be better then), and notes that Fortress has acquired the mezz (please note the exact structure isn't clear to us, and at least part of it looks like it is in two CRE CDOs) and a controlling interest in the borrower.

An additional $5mm is being plowed into a reserve, but looks like it will be eaten into heavily by fees, and accrued defaulted interest will be deferred until the extension date.

One Federal Street - $262mm in LBUBS 2006-C4

Tishman Speyer retired $62.5mm of mezz debt on One Federal Street according to CRE Direct, leaving it with a 49.5mm mezz note and a 262mm senior mortgage.

Saturday, October 9, 2010

And the Real Winner is...

We called it to soon back in March. The Centerbridge/Paulson/Blackstone investor group swooped in to take Extended Stay out of bankruptcy, quashing the creditor-approved group led by Starwood. More details to come.

There was one bit of unintended humor highlighted in the WSJ report on the matter:
Judge James Peck of the U.S. Bankruptcy Court in Manhattan initially approved Extended Stay's Chapter 11 restructuring plan in July, calling it "perhaps an unprecedented bankruptcy" involving entities "never expected" to file for bankruptcy protection.

I think it's fair to say that a lot of people expected this deal to fail - it epitomizes the rise and fall of the CRE space and Hotels in particular. Blackstone put $3-$4 billion into buying it in 2005, then flipped it to Lightstone in a highly levered $8 billion transaction in 2007, and now they're taking it back.

Friday, October 8, 2010

Blackstone Targets Columbia Sussex

Bloomberg reported today that Blackstone has bought the junior debt associated with the Columbia Sussex portfolio in BSCMS 2006-BBA7.

The irony being that Blackstone sold those hotels to Columbia Sussex at the peak, and is now stealing them back at the trough...

Thursday, October 7, 2010

JPMCC 2010-C2 $1.1bln Priced?

This deal purportedly priced very tight today, but I frankly didn't see it and don't even know the actual name - some help would be greatly appreciated...

The A3 priced at+150 (25 wider than the last LCF AAA) per Bloomberg, and the WSJ quotes Merrill's former, and Barclays' current, CMBS analyst Julia Tcherkassova that the collateral is mostly maturing loans from outstanding CMBS deals.

ClassS&P/FitchSize ($MM)WALSubordination
A-1AAA/AAA$266.70 4.2718.25%
A-2AAA/AAA$243.10 7.1818.25%
A-3AAA/AAA$390.50 9.7918.25%
BAA/AA$37.20 9.8914.88%
CA/A$53.70 9.9110.00%
DBBB+/BBB+$33.00 9.977.00%

Bloomberg also notes that
Deutsche Bank AG plans to sell $856.6 million of bonds backed by commercial mortgages, a person familiar with the offering said today. The securities are tied to 42 loans secured by 63 properties, said the person, who declined to be identified because terms aren’t public.

I did some digging and see a JPMCC 2010-CNTR ($485) from JPM on 9/13 - what was this?

Monday, October 4, 2010

John Hancock Tower flipped, again

WSJ reports:
Boston Properties Inc. agreed to acquire the John Hancock Tower and Garage in Boston from private-equity firms Normandy Real Estate Partners and Five Mile Capital Partners for about $289.5 million, plus the assumption of about $640.5 million in debt.

2006 - Broadway acquires from Beacon using $640mm Senior and a $723mm mezz.; Appraises at $1.3mm
2009 - Borrower defaults, Normandy and Five Mile pick up the mezz for $20.1mm, assume the senior, takeover ownership.
2010 - Normandy and Five Mile make 10x their investment less than 1.5 years later.

Good for GG9.