.Investors in the AAA tranche of $308M debt backed by 1740 Broadway in midtown Manhattan received only 74% of their money.
Creditors in the five lower groups were totally wiped out.
#commercialrealestate
#credit
#NewYorkCity
An estimated 360,000 property owners in south Florida may not be able to afford the repairs required by the new law.
Nearly 90% of the 20,000-plus units for sale in Palm Beach, Broward and Miami-Dade are in buildings aged 30 years and above.
#realestate
Downtown Denver office vacancy rate nears 34%.
Expecting younger workers to shell out $200 to $300 a month “just to park your car to go to an office building where you don’t want to be is a very hard sell."
#commercialrealestate
Roughly $930 billion in CRE loans will come due this year.
$4.7 trillion in outstanding CRE debt.
Banks hold about $3 trillion in CRE debt.
70% of that at regional and community banks.
#CommercialRealEstate
#credit
"A 10% loss on CRE loans would leave more than 100 mostly small and midsize banks, representing nearly $700B in assets, undercapitalized.
A 20% loss would render over 900 banks undercapitalized, including some larger banks."
#commercialrealestate
Minneapolis Office
LaSalle Plaza Sold 70% Off 6/23
$46M vs $155M in 2011
Kickernick Building sold 80% Off 2/24
$3.79M vs $19.15M in 2017
330 South 2nd sold 64% Off 6/24
$7.2M vs $20 million in 2018
Forum Towers sold 91% Off 9/24
$6.5M vs $73.7M in 2019
#commercialrealestate
The Whole Industry Could Collapse
"More than 80% of housing properties that have received D.C. funding aren't bringing in enough rental income to pay their mortgages and maintenance costs,"
#commercialrealestate
#multifamily
#WashingtonDC
The CMBS market is a disaster right now says United Capital Markets CEO John Devaney
"There are dozens and dozens of office buildings that are defaulting now in Chicago, Denver, Los Angeles, San Francisco, Philadelphia"
#commercialrealestate
#credit
61% Reduction In Value In New York City
Owner of 1140 Sixth Ave. wrote down the value of the 22-story, 250K SF building to $70M.
Sold for $180M in 2015.
Debt-service coverage ratio is -5%.
#commercialrealestate
#credit
Moody's reported on 7 office building sales from April-July with price declines over $100M
Also in July:
180 Maiden Lane, NY
Purchased for $297M vs prior $470M.
100 Wall St., NY
Purchased for $116M vs. prior $270M.
#commercialrealestate
#credit
90% Off In Portland
J. K. Gill Building sells for $3.25M
Former owners paid $9.85M in 2018 and invested $30 M in improvements.
Previous owner borrowed $27M from First Interstate Bank which foreclosed and sold the property.
#commercialrealestate
UBS to Liquidate $2 Billion Real Estate Fund
Heavy concentration in office properties, with 4/5 of its assets allocated to this sector.
United States represents the largest country exposure at 22%.
#commercialrealestate
#realestateinvesting
@TripleNetInvest
Those two properties have gone back to lender DPI Acres Capital.
Tides received three additional foreclosure notices on DFW properties. They’re scheduled to go up for auction in August:
Tides at North Collins, 296-units
Tides at McCallum South, 72-units
Tides at Avril, 175-units
57% Off On Wall Street
100 Wall Street sells for $116M.
Barings, the investment arm of MassMutual, paid $270M through its subsidiary Cornerstone Real Estate Advisors when it purchased the building in 2015.
#commercialrealestate
#NewYorkCity
Amount of vacant office space breaks records in Atlanta, study shows
The firm estimates around 32.4% of all office square footage was available - a number that CBRE says "continues to break records."
#commercialrealestate
Strip Mall Landlords Taking A Hit From Bankruptcies
Number of stores at recent peak:
Big Lots 1,400
Rite Aid 2,300
Conn’s/Badcock 550
LL Flooring 400 (selling 219)
#commercialrealestate
#economy
Federal agencies are getting rid of office space they no longer need and will shed millions of square feet in the coming years.
Department of Energy plans to dispose of 3M SF of building space through 2027.
#commercialrealestate
#WashingtonDC
Judge orders the appointment of a receiver for Palisades Center Mall in West Nyack.
Owner is in default on a $418.5M mortgage and a trust representing lenders filed to foreclose on the mall last year.
Appraised at $217M in November, 2022.
2.2M SF
#commercialrealestate
#CMBS
@TripleNetInvest
201 N. Charles St. High bid at auction Thursday $3.1M
In 2013 sold for $19.6M
100 N. Charles St. 345K SF Sold for $4M in June.
Both 1960s era towers sold for $12 per SF.
A foreclosure auction is scheduled for Sept. 12 at the Hennepin County Sheriff’s Office in downtown Minneapolis for Wells Fargo Plaza, a 24-story office tower in Bloomington, MN
450K SF
Owners defaulted on a $44.8M mortgage
#commercialrealestate
#credit
Moody’s Cuts Debt on Offices Backed by Pimco to Lowest Junk
"US offices continue to fall in price, led by declines in central business districts, where values are down 52% from their 2022 peaks, according to MSCI Inc."
#CommercialRealEstate
#credit
Multifamily Madness
Anton Mattli, CEO of Peak Financing, told DailyMail that up to $50 Billion tied up in syndicated property deals is at risk of default.
'That is 2,000 plus properties that are at risk of foreclosure,' he added.
#commercialrealestate
An eight-story office property, 330 Second Ave in Minneapolis, was recently sold at auction on the Ten-X platform to a private individual for $7.2M.
Sold for $20M in 2018.
#commercialrealestate
“Day of reckoning”:
Investors that swooped in on South Florida’s multifamily boom now face elevated interest rates, high insurance costs and plateauing rents.
#commercialrealestate
#credit
In metro Phoenix, 34 loans for multifamily properties are currently on a CMBS watch list.
"The next 24-36 months will be difficult for developers, investors, lenders, brokers and contractors"
Tides Equities facing 2 foreclosures.
#CommercialRealEstate
@TripleNetInvest
For me the attraction is free use of an air pump with the tire pressure guage built in-just dial in the pressure you want.
At other places you have to feed in quarters and check the pressure yourself with a hand held tire guage.
Then Wawa gets my purchase of gas, food and drink.
82% Reduction In Value In San Francisco
Emporium Centre San Francisco 1.45M SF Mall
Owners stopped making payments on $558M loan.
KBRA in July concluded the value of the property was $221.7M down from $1.22B in 2016.
#commercialrealestate
#credit
Webster Bank files to take control of Hartford Metro Center office building at 350 Church St.
Alleges owner failed to repay $38M loan and pay $1.3M in property taxes.
Purchased for $49M in 2017.
#commercialrealestate
#credit
#Connecticut
Auctions Sep 23 Former Fast Food - Starting Bids
Former Burger King Willoughby, Ohio $250K
Former Burger King Warren, Ohio $200K
Former Checkers Dublin, Georgia $225K
Former Hardee's Ashland Alabama $125K
#commercialrealestate
Monday Properties is at risk of losing 7 high-rise office buildings in Rosslyn, Va, across the river from DC, after it missed a payment on a piece of an $841M loan, which matures in less than 2 weeks.
@danjmcnamara
@DiMartinoBooth
#commercialrealestate
Of major US cities Boston is most dependent on CRE for revenues.
Boston office building sale price reductions from previous purchase price.
33–41 West Street 74%
125 Broad Street 72%
186 Lincoln Street 47%
110 Canal Street 39%
281 Franklin Street 38%
#commercialrealestate
Helmsley, a 1.4M SF building atop Grand Central
Purchased in 2015 for $1.2B.
Defaulted in January after its $670M mortgage came due.
Also carries $125M in mezzanine debt.
Lenders agreed to give owner time to explore conversion.
#commercialrealestate
Kentucky skyscraper owners default on $28M loan.
Monthly payments of $142,204.82 not made since last November.
26-story Meidinger Tower in Louisville, Kentucky
Purchased for $32M in 2017
#commercialrealestate
#credit
77% Off In Chicago
111 West Illinois Street to be sold for $17M
Commanded $75M in 2015.
23% occupied after Salesforce’s departure.
#commercialrealestate
73% Reduction In Value In Denver
Metropoint I and II at 4600 and 4610 S. Ulster St. purchased for $22M.
California State Teachers Retirement System purchased the buildings in 2006 for $81.1M.
Total 433K SF on 14.5 acres
#commercialrealestate
Bank OZK Prepares For ‘Credit Deterioration’ While Growing CRE Loan Book
Pool of nonperforming loans grew to $81M
Real estate loan portfolio grew $670M in the last 3 months to $28.5B
#commercialrealestate
#banks
78% OFF IN DC
After foreclosing on 1776 Massachusetts Ave. NW the noteholder, Society for Science, (owed $29.1M) took control of the building at auction with the only bid-$10M
Purchased in 2012 for $45.5M
Built 1969 Class C
@DiMartinoBooth
@danjmcnamara
@BankerWeimar
@JG_Nuke
“Vacancy rates aren’t showing the whole picture, since there are still lots of leased offices that aren’t occupied or are under-occupied”
Estimates that only 15% of office buildings are appropriate for residential conversion.
#CommercialRealEstate
"Not every Class B or C building is 90% vacant or even 50%, but many are."
"That is a formula for defaults. The slow-moving wreck will take months or years to play out, but playing out it is."
#commercialrealestate
#NewYorkCity
Multifamily Distress
David Lynd, CEO of real estate firmThe Lynd Group, cited a recent meeting he had with an unidentified larger institution, which feared the sector was heading for "real estate armageddon."
@m3_melody
#commercialrealestate
#multifamily
$300M CMBS loan backed by 1 Cal Plaza in LA has moved to special servicing
CMBS maturities in LA:
“The overwhelming share of those [properties] are going to be facing a significant amount of lease rollover and/or current vacancy”
#commercialrealestate
64% Reduction In Price - 360 Lexington Avenue
In contract for $65M.
Purchased for $180M in 2019.
Lenders Barclays and PPM America held $110M mortgage.
270K SF office and retail building.
#commercialrealestate
#credit
#NewYorkCity
Starwood Capital and Artisan Ventures have defaulted on an $84.8M loan from MetLife tied to a 257,000-SF office building located at 1960 East Grand Avenue in El Segundo.
#commercialrealestate
92% Off In Chicago - Legal Battle Ensues
300 West Adams sold for just $4M in December.
Purchased for $51M in 2012.
Two investors sued claiming they were secretly cut out of the deal.
#commercialrealestate
Two Thirds Off In San Francisco
400 Montgomery St. expected to trade hands for a figure in the mid $20 million range.
Purchased for $77.5 million in August 2019.
#commercialrealestate
Another downtown St. Louis office tower gets receiver after loan default
It's the fourth-largest office building in the region with 759,608 SF.
Bank of America Plaza at 800 Market St
#commercialrealestate
#credit
Multifamily distress has jumped 100 basis points between June and July, which
@cred_iq
called a "staggering" growth rate.
At 8.4%, this is the fifth consecutive record high.
Up from 2.6% in January.
#commercialrealestate
Another Brookfield owned Los Angeles office tower is in financial trouble
$400M loan tied to the 1.4M SF Bank of America Plaza has been transferred to special servicing by its lenders, a consortium of WFC, GS, C and MS.
#commercialrealestate
#credit
Magnificent Mile retail asset goes to lender Barings after $61M default.
625 N. Michigan Avenue
“Many landlords on Michigan Avenue have given back the keys"
"soaring vacancy rates and plummeting values"
#commercialrealestate
#credit
#Chicago
Ashford Hospitality Trust
$410M loan backed by 17 hotels was again transferred to special servicing, this time for “imminent monetary default,” according to Morningstar Credit.
#commercialrealestate
#hospitality
US commercial mortgage market at 4.7T
@TreppWire
noted special servicing rates in August
Office rose to 11.91%, the highest in 11 years.
Multifamily rose to 5.71%, the highest in 9 years.
Retail at 10.92%
Lodging at 7.42%
#commercialrealestate
#CMBS
Roughly 7.4% of multifamily CMBS loans were delinquent or in special servicing at the end of last month according to a report from securitized debt tracking firm
@cred_iq
up from about 3% at the start of the year.
#commercialrealestate
#multifamily
Downtown San Diego 27% Office Vacancy
“Until you figure out homelessness, until you figure out safety, until you figure out cleanliness, people aren't going to want to flock to downtown as much,” says Tim Olson, JLL
#commercialrealestate
76% Drop In Value in Baltimore
19-story skyscraper at 300 E. Lombard St
In receivership as lender eyes sale.
Purchased in 2015 for $38.3M. Now valued at just $9.1M
CMBS balance $23.79M. Payments 8 months late.
#commercialrealestate
#office
"Record-high vacancy levels, feeble rental rates, a contracting tech sector and a growing number of foreclosures have created an ominous landscape for Bay Area offices."
Well over 1/3 of the office space is empty in San Francisco.
#CommercialRealEstate
Sephora lands steep discount on 520 Madison Ave lease
Price reduction of two-thirds.
Annual rent reduced from $3 million to $1 million.
#commercialrealestate
#retail
One Charles Center Baltimore
In 1993 ownership transferred to MetLife, holder of the
$19.6M mortgage, via a credit bid of $11.5M.
In 1996 sold for $6M.
Sold last month for $4M - $12 per square foot.
#commercialrealestate
80% Reduction In Value In Chicago
The retail portion of the building at 1 N. State St. is set for a foreclosure auction next week.
Current appraisal $19.9M
$101M valuation in 2013.
#commercialrealestate
84% Off In Baltimore
As previously noted 201 N. Charles St. received a high bid of $3.1M ($12 Per SF) at auction yesterday which met the reserve price.
The office tower sold in 2013 for $19,6M.
#commercialrealestate
#realestateinvesting
Owners Default On $525M Loan Tied To Mobil Building at 150 E. 42nd St.
Leasehold for the 42-story, 1.7M SF tower purchased in 2014 for more than $900M.
$525M single-asset CMBS loan and a $175M mezzanine loan.
#commercialrealestate
#NewYorkCity
2 downtown Miami office buildings face $58.4M foreclosure
12-story, 150K SF 200 S.E. First St 68% Occupancy
25-story, 172K SF 44 W. Flagler St 51% Occupancy
Purchased for a combined $56.7M in 2022.
#commercialrealestate
Chicago posted the highest rate of CMBS office stress at 75%, followed by Denver's 65% and Houston's 57%.
Philadelphia 52%
The stress rate measures loans that are in default or at higher risk of default.
Source: KBRA Analytics
#commercialrealestate
San Francisco Hospitality Sector Swimming In Debt
CMBS delinquency rate in San Francisco lodging sector soared to 41.6% in June.
Revenue per available room is 28% below peak 2019 levels.
#commercialrealestate
#hospitality
.
Nearly empty Jackson Blvd office building headed to auction
Sale of distressed building to test investor interest with $5 psf starting bid.
185,000 sq ft building purchased in 2013 for over $22M.
#commercialrealestate
#Chicago
Minskoff Equities defaults on Playa Vista office with $271M debt
The Bluffs 500K SF
Purchased for $413M in 2016
In October, data from CoStar provided to TRD showed the campus was about 70% vacant.
#commercialrealestate
#credit
#California
Locations Closing
Big Lots, LL Flooring, Bob’s Store, Conn’s, Family Dollar. 7-Eleven, Stop+Shop, Walgreens. CVS, Rite Aid, Macy’s, Sam Ash, Buca di Beppo, World of Beer, Red Lobster, Mod Pizza, Rubio's, TGI Fridays, Applebee's, Denny's, Shari's
#commercialrealestate
#economy
Syndicator faces two apartment complex foreclosures as dominos fall
Cyclone, whose website is no longer active, stands to lose 600 units.
San Antonio properties, The Grove and Westlake Villas
#commercialrealestate
#multifamily
#credit
60% Reduction In Appraised Value In Pittsburgh
BNY Mellon Center taxable value plummets $90.2M amid concerns about its future.
From $149.9M to $59.6M.
Total reductions awarded to more than 16 buildings in the CBD are over $500M.
#commercialrealestate
80% Off in Chicago 1 N. LaSalle St.
$74M loan acquired for between $15M and $20M
Property purchased 2018 for $113M
By acquiring the loan, Namdar and Mason are in position to take control of the nearly half-empty 47 story tower
#commercialrealestate
The five-story, 170K SF building at 3600 Brighton Blvd. had no tenants when purchased.
And it still has none today.
This July marks four years since Rev360 was completed. No one has ever moved into the building.-BusinessDen
#commercialrealestate
#Denver
Bankrupt Tacoma developer’s apartment property goes to lender in $5 million credit bid
Pacific Ridge Apartments, 8445 Pacific Ave. S. 80 units
Construction loan outstanding balance of $20.3M.
#commercialrealestate
#multifamily
The 773-room Dearborn Hyatt, that sat empty for 5½ years, went to sheriff's sale last month after the owners defaulted.
$9.85M winning bid
Sold for $18.25M 2021
Earlier $27M deal to turn into condos collapsed.
#commercialrealestate
#credit
85% Reduction In Appraised Value In Massachusetts
Solomon Pond Mall in Marlborough
Appraised at $29.7M, down from$200M in 2012.
Receiver appointed in 2021.
#commercialrealestate
#retail
San Francisco's hotels stagger under massive debts following a dramatic drop off in tourism.
CMBS delinquency rate for the sector jumped to 41.6% in June from 5.7% in June last year, according to data from
@TreppWire
.
#commercialrealestate
#Travel
Owners may lose an eight-property portfolio of prewar apartment buildings.
Stopped making payments this spring.
Citizens Bank alleges that the owners now owe around $56M, as well as interest and fees.
“Citizens Bank has filed suit against a pair of real estate investors, claiming the borrowers defaulted on mortgage payments tied to a large Upper Manhattan multifamily portfolio”
#CRE
#CMBS
#CommercialRealEstate
(Link w/o paywall in comments)
Owner defaulted on the $215M mortgage for 681 Fifth Ave. and lenders have moved to seize the 80,000 SF building.
Appraised at $105M, a 76% decline from pre-pandemic value.
#commercialrealestate
#NewYorkCity
Washington D. C.
39% of securitized office loans were in default or at risk of default
Creditors foreclosed on 12 office buildings in the first half of this year
The amount of occupied space declined by more than 500K SF in the 2nd quarter - WSJ
#commercialrealestate
#credit
One local investor in a company that owns multiple apartment complexes in Aurora said that they’ve “lost control” of several properties because the gang has taken over the units.
#commercialrealestate
#multifamily
#Colorado
@DiMartinoBooth
CRE loans as a percentage of total loans
New York Community Bancorp 71%
Valley National 60%
East West Bancorp 39%
M&T Bank Corporation 34%
Comerica Incorporated 32%
Western Alliance 28%
PacWest Bancorp 28%
Zions Bancorporation 23%
66% Off In Los Angeles
Chinese investor buys 801 Tower office building for $60M.
465,200 SF building at 801 South Figueroa Street
Barings purchased the building in 2014 for $178.2M.
#commercialrealestate
#credit
Developers sold Rev360 for $72M in 2021.
Now for sale at 'incredible discount'.
No one has ever moved into the building. The doors are locked. The ground-floor retail space hasn’t been built out. The office space upstairs is empty. -BusinessDen
#commercialrealestate
#Denver
Value Of White Marsh Mall, Now In Receivership, Has Fallen 73%
New appraisal puts the mall's valuation at $80M, down from its $300M valuation when a CMBS loan backed by the mall was issued in 2013.
#commercialrealestate
#Baltimore