Cantor buying CS loans for new $775mm CMBS deal

From Bloomberg.

Stuy Town tenants back in play

Crain's reported yesterday that Brookfield (who happened to raise their hand last week when we asked who had a few billion dollars of cash looking for a home in distressed real estate deals) is teaming up with tenants to make another push to buy the property. You'll recall that the tenants actually were prepared to pay north of $4 billion when MetLife original sold the property in '07, and the NY Times, at least, believes that bid will be at least the $3 billion owed on the senior mortgage.

Even if you correctly assume that the NY Times doesn't know what it is talking about and is pulling numbers out of the air that make good headlines, this is still good for the AJ and better bonds. In fact, the faster the resolution comes the better - we should see interest shortfalls get cured and the deals can stop accruing fees, not too mention the legal settlement, potential effects of an assumption or early payoff, etc. The big negative is what the loss to investors is going to be, but it's not going to be as bad as what is priced in to the bonds right now (guessing the C30 AJs are in the 50s, maybe L60s at best).

Thankful to be an American, but dissapointed in America today

Feeling a little fat after this week, but got ample helpings of movies like The Patriot, Gone With The Wind (fell asleep), Gladiator, Pearl Harbor, and American Beauty to stir up the spirits. I also read a Robert Ludlum book. I'm itching for a fight ;)

The Black Friday phenomena just disgusts me - even when they're not spraying pepper spray into crowds or bashing the faces of accused shoplifters against the cold linoleum floors of a Super Walmart, the shopping orgy of the year just leaves a disgusting film on the whole holiday. Christmas, in general, is really one of my least favorite times of the year. I've bought the requisite gifts so no one can call me Scrooge, but I'll be damned if I hang a single light or put up a dead tree inside my house (aside from the lumber that holds up the walls). All I want for Christmas are physical gold and silver.

JPM preparing a non-performing CMBS

viazerohedge.com

ZeroHedge just crashed...

Where are we supposed to go now for our doomsday outlook!#!!#?!?!

Fitch - CMBS losses May Be "Manageable" 4% - 5% When Deals Mature

That's the Bloomberg headline, good for a laugh.

They go on to clarify that losses on all CMBS issued/rated prior to mid-2007 have been just 2.6% and will increase to 10.6% by maturity. I wasn't able to tie in the numbers from the headline to anything in the article, but double digit loss projections at least have the right number of digits...

CreXus beats earnings - Q3 ROE 17.61%

Stuyvesant Town/Peter Cooper Village Tenants win a judgment...

Two years after we noted that PCV/ST lost their appeal and the win was affirmed by the NY Court of Appeals on the J-51 rent control violation, the tenants have finally won their judgment of $215mm - almost a year's worth of revenues at the troubled property.

Deutsche Bank produced a summary of potential interest shortfalls making it apparent that they need to add a professional "formatter" to their team, but interesting nonetheless. In their worst-case scenario where all of the judgment is paid out of the CMBS trusts, shortfalls shake out as such:

Highest Class hit with a shortfall:
CWCI 2007-C2 G
MLCFC 2007-5 B
MLCFC 2007-6 D
WBCMT 2007-C30 F
WBCMT 2007-C31 G

Brookfield buys out Four World Financial Center

Brookfield bought out the remaining 49% interest it did not already control of World Financial Center at approximately $270 psf, and simultaneously agreed to a 767k sf lease (40% of NRA) with BAML.

Government Property Advisors Portfolio (3.6% LBUBS 2006-C7) transfers to the Special

Happened last month, I just missed it. Saw it in DB's report today. That makes three of the top 10 loans in LBUBS 2006-C7 deal gone to the special over the last two months.

Epic Fail

Last week it was reported the first AAA CMBS in Europe took a principal writedown. However, keep in mind that the EPICP INDU deal was a single floating-rate loan on a portfolio of 119 properties in the UK. It originally matured on 4/20/2011, but the loan terms were modified to extend it to 4/20/2014. Still unable to survive, it ultimately 65% loss on the senior note and 100% on the junior and mezz pieces.

.

Barclays is growing its CMBS team - suck it CS!

Does HITC count as a source?

Barclays Capital announced several appointments to its Commercial Mortgage Backed Securities (CMBS) Finance business in the U.S.

These appointments accelerate the recent expansion of the firm’s CMBS origination capabilities...

Move along, everything is fine now - CPPI up 2.4% mom

Oct. 24 (Bloomberg) -- 

U.S. commercial property prices rose 2.4 percent in August, the fourth straight months of gains, according to Moody’s Investors Service. 

    The Moody’s/REAL Commercial Property Price Index is now 15 percent above its post-peak low in April, the company said in a statement today. Moody’s doesn’t see “significant” price gains in the near term as loan originations based on commercial- mortgage backed securities slow and demand for vacant space continues to “languish,” the company said.

The Belnord gets a $93.5mm appraisal reduction

Special Servicer's Survival Guide: 201

Anon posted a link to a summary from a recent conference with some interesting highlights. You should really click the link, but I'll hit some of the high points of their highlights:

• More than 2/3rds of CMBS loans coming due have been extended and can be extended no longer due to PSA limitations (I'll need to double check that one...) -Steve Van
• Flags have been laid back enforcing brand standards on their properties, but it's been three years and they're running out of patience. -Steve Van
• Pace of workouts are exceeding the pace of transfers to special servicing and he expects to work through the backlog over the next 3 - 5 years. -Clark Rogers, Keybank and echoed by Michael O'Hanlon, Berkadia
• The lack of financing since August is having a noticeable impact on maturing loans. Expects to see a big uptick in Large Loan Floaters hitting their last extension date with no possibility of refinancing. Expects massive defaults in LL Floaters. -O'Hanlon
• Big demand for Hotel product coming out of Large Loan Floaters. -Rogers
• Specials who kicked the can down the road look like geniuses today? (not sure I would call the specials geniuses).
• Still don't expect a flood of distressed loans. 
• General agreement that nothing has changed - fundamentals have stayed flat, unemployment hasn't improved, recession never really stopped...

Thanks Anon.

So, two storm troopers decide to go in on an apartment together...

GGP refinances Northbrook Court (NOT in a CMBS)

per Bloomberg.

That brings the total to $996mm in GGP loans refinanced the last few weeks, and that looks like it for the rest of this year. Mathrani said "We have accomplished our 2011 goals and are now focused on 2012 financing opportunities."

Credit Suisse Update

Although they're cutting all the bankers, the trading desk isn't impacted.

MetLife and NY State Teachers fund 3 GGP Malls

CMAlert noted that the two lenders funded three notes:

Natick Mall - $450mm ($250 MetLife, $200 NY Teachers)
Galleria at Tyler - $200mm (just MetLife); WBCMT 2006-C29
First Colony Mall- $185mm Metlife; MLCFC 2006-4

Innkeepers reach tentative deal with Cerberus and Chatham

WSJ and Nomura reporting ~$1 billion. Nomura notes this would result in an 18% loss severity - not too shabby in my opinion.