Deutsche Bank’s commercial real estate advisory group is dismantling,
according to industry insiders, after enduring significant losses
during the recession. While a spokesperson for Deutsche denied the
claims, anonymous sources connected to the bank contend that the
commercial arm will dissolve in the near future, with its managing
director, Warren Friend, possibly leaving the bank for good, according
to Bloomberg news. Even as it shuts down this arm of the company,
however, the bank will continue to originate commercial mortgages,
sources say. Deutsche is currently seeking out places for employees
affected by the consolidation, although it is not immediately clear how
many staffers work in that department currently. [Bloomberg]

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A year-end review of Manhattan commercial real estate casts doubt on 2010′s outlook. The Eastern Consolitdated report showed that commercial property sales volume was weak through the end of 2009, with
preliminary projections suggesting that the total volume for the year
was just $5.7 billion, a steep decline from $23.6 billion in 2008 and
$62.8 billion in 2007Meanwhile, Gemini Real Estate Advisors picked up three New York City performing hotel notes. The notes have a combined value of $43 million and all are current on their mortgage obligations, according to Gemini. Click here for more. TRD [more]

The W Hotel

The W Hotel Union Square is facing imminent default, according to a recent monthly report of 30-day-plus delinquencies for all commercial properties by Barclays Capital. The hotel is serving as collateral for a $115 million W New York-Union Square loan, the report shows. The loan has been transferred to a special servicer, being classified for imminent default. Barclays Capital’s report shows that 30-day-plus delinquencies for all commercial properties jumped 5.5 percent in October. The CMBS remittance report shows that the worst performing commercial mortgage category was hotels, which hit a record-high delinquency rate of 10.7 percent among loans that originated in 2007.