A report from the Bank of Korea states that the delinquency rate on commercial property-backed loans in Korea has risen to 1.44 percent – the highest level in three years, according For those individuals who do not want to venture … Continue reading →
Commercial mortgage-backed securities (CMBS) delinquencies rose to a record high of 10.16 percent in June after exceeding 10 percent for the first time in May, according to The Wall Street Journal. The increase is due in part to the maturation … Continue reading →
Commerzbank, Germany’s second largest lender will transfer its commercial real estate and ship financing business to a restructuring unit aimed at winding down non-core assets, according to The Wall Street Journal. The two portfolios constitute a total volume of $215 … Continue reading →
Partial interest deals are transactions in which investors take partial stakes in buildings instead of buying them outright. In 2011, partial interest deals accounted for $9.9 billion (63 percent), of the $15.7 billion in Manhattan office transactions, according to the … Continue reading →
Debt yield ratio is a method used to determine the maximum amount of commercial real estate loans. It is the Net Operating Income (NOI) as a percentage of the total loan amount (first mortgage). For example, if a commercial The … Continue reading →
CoStar reports that banking regulators have closed six banks in the past two weeks. Commercial real estate exposure was a major cause of the failures. The six banks have total combined assets of $1.5 billion and they were holding $159 … Continue reading →
The New York Times cites a report by KC Conway of Colliers International showing that commercial real estate appraisals are consistently inaccurate. Of the 2,076 properties studied, 64 percent were appraised above the sale price by a total of $1.4 … Continue reading →
Trepp, LLC reports that the US CMBS (commercial mortgage-backed security) delinquency rate increased 12 basis points last month to 9.80 percent ($59.3 billion), according to MarketWatch. Newly delinquent loans ($3.8 billion in total) contributed about 64 basis points to the rate. All … Continue reading →
Ares Commercial Real Estate Corporation, a specialty finance company that invests in and manages middle-market commercial real estate loans has priced its initial public offering (IPO) of 7,700,000 shares of common stock at $18.50 per share, raising approximately $142.5 million … Continue reading →
A $2.4-million judgment against real estate developer David Schostak (of Schostak Brothers & Co.) is the subject of controversy and a legal battle in Michigan. Schostak guaranteed a loan that was pooled with others as a commercial mortgage-backed security (CMBS). … Continue reading →