The spread on the super-senior AAA-rated class of CMBS fell to its lowest level in almost eight months, according to Commercial Mortgage Alert. The result reflects pent-up demand due to sagging CMBS issuance so far this year. Goldman Sachs and Citigroup yesterday placed the long-term, … [Read more...]
5.10.19: How Is Amazon a Solution for Failed Malls?
The teardown of Euclid Square Mall in Euclid, Ohio, at the center of a roughly 70-acre site, began a new chapter for this failed mall. The dead mall will be replaced by an Amazon fulfillment center, scheduled to open in summer 2019. Amazon paid more than $7 million for Euclid Square Mall and the … [Read more...]
5.7.19: ValueXpress Refinancing SBA 7(a) Hotel Loans with CMBS Loans
The SBA 7(a) loan guarantee program allows commercial banks to make loans on owner-occupied commercial real estate that would otherwise be considered too risky. Hotels are considered particularly risky by many commercial banks. Most limited service hotels are owner-operated and qualify for SBA … [Read more...]
ValueXpress Arranges $6,200,000 CMBS Loan for the Refinance of a 114-Room Holiday Inn Express in Orange City, FL
ValueXpress has arranged a $6.2-million CMBS conduit loan for the refinance of a 114-room Holiday Inn Express and Suites located in Orange City, Florida. The property is a four-story hotel constructed in 2003 and renovated in 2013. The loan provided cash out to the borrower for a future Property … [Read more...]
ValueXpress Obtains $15-Million CMBS Conduit Loan for the Refinance of the Ambridge Regional Distribution & Manufacturing Center in Ambridge (Pittsburgh), PA
ValueXpress has arranged a $15-million CMBS conduit loan for the refinance of a 1-million-square-foot warehouse and light manufacturing industrial park located in Ambridge, PA, 15 miles north of Pittsburgh. The property features 22 buildings that were constructed in stages between 1920 and 1968. In … [Read more...]
5.1.19: AAHOA Trade Show in San Diego, CA a Huge Success
Attended by more than 8,000 Asian American hoteliers ready to lock in long-term, fixed-rate hotel loans before interest rates head upward, the annual Asian American Hotel Owners (AAHOA) Trade Show in San Diego, California, was a huge success, according to Michael D. Sneden, Executive Vice President … [Read more...]
4.24.19: Unanchored Neighborhood Shopping Centers Are Hot in CMBS Financing
Unanchored neighborhood shopping centers used to be viewed as stepchildren to malls, food store-anchored shopping centers and big box shopping centers when it came to CMBS conduit loan financing. But internet shopping using Amazon and other retail websites has changed everything. Unanchored … [Read more...]
4.18.19: Mall Giants Continue to Redevelop Vacant Department Stores
Mall owners Simon Property (NYSE: SPG) and Macerich Company (NYSE: MAC) continue to redevelop vacant department stores, creating substantial value for shareholders. In a recent earnings call, Simon reported that redevelopment activity is moving quickly, and in some cases, much quicker than … [Read more...]
4.15.19: How Do Seasonality Reserves Work in CMBS?
Hotel properties located in cold climates or resort areas can have revenue that is seasonal. Most of the revenue is generated in three seasons of the year and little or no revenue is generated in the fourth season. But the mortgage payment is due every month. How does an owner prepare for mortgage … [Read more...]
4.10.19: When Can a CMBS Conduit Loan Close on a New Property?
CMBS conduit loans are underwritten based on the income generated from tenant leases less property operating expenses, usually the most recent 12 months’ actual expenses incurred. The calculation to determine expenses can become difficult for newly built and occupied properties. Why? There is no … [Read more...]