Commercial Mortgage Alert reports $17.4 billion of U.S. CMBS are in the pipeline to price by the end of September. This figure includes two multi-borrower transactions totaling $2.9 billion that are now in the market and expected to price next week. The offerings, at approximately $1.4 billion each, are led by J.P. Morgan and Wells Fargo/RBS, respectively.
This estimated $17.4 billion of issuance, together with the $9.4 billion of transactions that have already priced this year, would bring total volume to $27 billion through the third quarter. Some other offerings are likely to materialize in the meantime from lenders still getting their revived conduit shops off the ground. Also, a few lenders are chasing single-borrower financings. In all, that activity puts the sector roughly on target to reach the $39-billion annual issuance total predicted by a panel of market pros at the beginning of the year.
Of the 12 deals in the pipeline, 4 weren’t previously listed: a $2.3-billion offering by Deutsche Bank and UBS in July; a $1.6-billion deal by Wells Fargo, RBS and GE Capital in July; and two third-quarter issues — a $1.5-billion offering by J.P. Morgan and a $1.5-billion issue by Morgan Stanley and Bank of America.
The current securitization pace, while still far below the level of the market’s heyday, is running well ahead of a year ago, when issuance totaled only $11.6 billion.
