Archives for January 2017

With tight pricing and market acceptance of the vertical and L-shaped retention structure, what remains unknown is how the smaller CMBS originators will participate. As of now, only the largest bankers -- Citi, Deutsche, Morgan Stanley, Wells and Bank of America -- have contributed to these … [Read more...] about 1.26.17: But How the Smaller CMBS Players Will Participate Is Still Unknown

Commercial real estate properties owned by a business that operates out of the buildings it owns are generally not eligible for CMBS loans. Financing related to these transactions is often referred to as “owner-occupied” loans and is often provided by commercial banks and the SBA with recourse to … [Read more...] about 1.20.17: How to Qualify for CMBS: From Owner-Occupied to Investment Property

The press had a field day this week reporting that a Pennsylvania mall that was foreclosed on after its owners failed to repay $143 million was auctioned off for $100. The 1.1-million-square-foot Galleria at Pittsburgh Mills was secured by a CMBS conduit loan with additional mezzanine financing. The … [Read more...] about 1.18.17: CMBS Mall Sells for $100 – A Great Headline, But Not the Full Story

According to Daniel H. Lesser, LWHA, “To the surprise of many, the U.S. lodging industry closed out 2016 with operating metrics still at record setting levels; however, its growth trajectory was notably lower when compared with years past. In general, occupancy levels have peaked and any short-term … [Read more...] about 1.9.17: Hotels Send Mixed Signals for 2017

For the first time since the financial crisis of 2008-2009, CMBS conduit issuance declined for the year. CMBS volume totaled $76 billion in 2016, down a whopping 25% from 2015’s $101 billion. Atypically, no single capital market disruption was a precursor to a decline. In 1999, volume declined when … [Read more...] about 1.6.17: U.S. CMBS Originations for 2016 Total $76 Billion

For 2017, CMBS professionals are projecting CMBS originations of $75 billion. Last year, the group’s average prediction of $110 billion proved to be too optimistic. The pros feel more uncertain about 2017 forecasts compared with other years. The culprit is risk-retention. CMBS issuers have … [Read more...] about 1.2.17: … While Predictions for 2017 Are Flat at $75 Billion