New Issue Pricings from last week

Mark Herschmeyer over at CoStar had an article highlighting all the new issue details from last week.

World Financial Center ($310mm)

Bloomberg had an article noting that BOA was only keeping 1/6th of the current Merrill space in WFC 2 and 4; it formerly occupied just over half the 8mm sq ft in the WFC complex. That's really not a big surprise. Building 1 is in CD 2007-CD4 ($310mm) and is currently fully occupied with one big lease (Fidelity National 13.06%) rolling in 2012, and I don't know their status.

GECMC 2007-C1 Manhattan Portfolio ($192mm)

Barclays also noted today that Real Estate Alert highlighted Manhattan Portfolio, a $192mm loan in GECMC 2007-C1, was in a loan portfolio for sale by LNR where average losses were 55-60%.

It was a pretty shitty deal.

Defeasance and Payoffs

There is a $165mm senior in the CSMC 2006-C5 deal and a $35mm mezz floating around. REAlert states the 49% owner is looking to recapitalize and sell it off, which would result in an early payoff and likely defeasance (its slated for maturity in 2016). Barclays noted today in a research piece that they may be able to negotiate a payoff that waives the call protection resulting in an early payoff.

Barclays also highlighted that 200 Public Square (WBCMT 2005-C20, $110mm) is for sale and is likely to be defeased.

Commercial Prices Drop 3.7% from March to April

From Bloomberg:

U.S. commercial property prices fell in April as sales of distressed assets made up a large share of transactions, according to Moody’s Investors Service. The Moody’s/REAL Commercial Property Price Index dropped 3.7 percent from March and 13 percent from a year earlier. It’s now 49 percent below the peak of October 2007 and at its lowest point in data going back to December 2000

I wanna piece of dat...

Vornado purportedly is seeking a portion of 666 Fifth Avenue and is looking to spend 9 figures.

For more on 666 Fifth, read our old posts.

Comings and Goings

Three new issues in one week:DBUBS 2011-LC2, GSMS 2011-ROCK, LSTAR 2011-1.

Beacon Capital is purportedly selling the 2mm sq. ft. 1211 Avenue of the Americas (aka 6th Ave) at $900+/sq. ft. or better.
New rent regulations in NYC being debated with landlords and lawmakers offering trades for tax caps and breaks in exchange for changes in rent regs on stabilized units.


Calendar:

World Market Center modifications

Deutsche Bank summarized the modifications nicely today. This originally represented 8.55% of PW10 (WMC1) and 12.28% of PW15 (WMC2).

For WMC 1:

1. The senior loan is split in to a $94.3mm A note and roughly a $106mm hope note. The coupon on the A note remains unchanged at 6.0165% and the hope note does not accrue interest. An immediate write-down of $10.7mm was passed to the Trust.
2. The Borrower contributed $11.2mm which brought the loan and required reserve accounts current.
3. 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (July 2015), the hope note can be paid off for $0.2/$1.

For WMC 2:

1. The senior loan is split in to a $73mm A note and a $200mm hope note. The coupon on the A note was reduced 200bps to 4.35% and the hope note does not accrue interest. An immediate write-down of $71.9mm was passed to the Trust.
2. The Borrower contributed $14.7mm which brought the loan and required reserves current.
3. 80% of the cash flow generated by the property in excess of the amount required to service the new A note will be used to amortize the hope note balance. If the A note is paid off on or before (the prepayment penalty was waived) the scheduled maturity date (January 2017), the hope note can be paid off for $0.2/$1.

Someone at Centerline just had to write their b-piece down (on both deals) from $1 to $0 :-(

Red Roof Inn - 48% Loss Severity

That could have been way worse.... Barclays reported today that this month's remit for CGCMT 2008-C7 reflected a 48% loss severity, hitting the J tranche on that deal.

See our prior thoughts here.




And, btw, I'm back - Apparently everything wasn't really 'better' in CRE-land like they told me...