JPMorgan dethrones Deutsche as top CMBS bookrunner

Amid 25% drop in market, Morgan holds relatively steady and increases market share

Dec.December 19, 2016 09:30 AM

For the first time in five years, there’s a new king atop of the CMBS mountain.

JPMorgan was the most active underwriter this year with $12 billion worth of U.S. transactions, edging out Deutsche Bank and ending its five-year reign as the top CMBS bookrunner, according to Commercial Mortgage Alert.

While U.S. CMBS issuance is on track to dip to $76 billion this year – down 25 percent from $101 billion last year – JP Morgan was able to hold relatively steady with just an 8 percent drop in volume. That helped it increase its market share from 13 percent last year to 15.9 percent in 2016.

As reported last week, JPMorgan’s CMBS trading desk has also quietly emerged as a major construction lender in the Greater New York City area, taking a leading role in issuing at least $2.7 billion in loans in recent years. The ramp-up comes as the bank’s commercial banking unit grows more cautious on real estate financing.

Deutsche TRData LogoTINY, meanwhile, fell to third place in the rankings, dropping 45 percent from last year to $9.7 billion. Its market share tanked from 17.5 percent to 12.9 percent, partly from its decision to lead fewer multi-contributor conduit deals.

Wells Fargo lapped Deutsche to claim second place, issuing $10.6 billion.

With activity outside the U.S. at tepid levels, JP Morgan is also expected to dethrone Deutsche as the top global underwriter.

Non-U.S. issuance totaled $1.7 billion this year, down from $5.2 billion in 2015 and a world away from the $96.2 billion issued at the peak of the market in 2006.

A panel of professionals at the start of the year predicted that volume would actually climb this year by 9 percent to $110 billion. [CMA] – Rich Bockmann

Related Articles

Clockwise from left: Kings Plaza Shopping Center in Brooklyn, 45-18 Court Square  in Long Island City with GFP's Eric Gural, and 150-13 89th Avenue in Jamaica 

Brooklyn mall’s $487M tops outer-borough loan list

Related chairman Stephen Ross with 30 Hudson Yards, 1633 Broadway and 55 Hudson Yards (Credit: Getty Images, Paramount, Wikipedia)

Here were NYC’s largest real estate finance deals of 2019

Former WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

Meet the financial backers behind WeWork’s rise and fall

Kings Plaza Shopping Center and JPMorgan's Jamie Dimon 

Macerich lands nearly $500M refi for Kings Plaza Shopping Center

A&E Real Estate Holdings principal Douglas Eisenberg and the properties (Credit: The Rego Park 18 Portfolio)

Deutsche Bank provided A&E $97M in financing for big Rego Park buy

55 Hudson Yards, Facebook CEO Mark Zuckerberg (Credit: Google Maps and Getty Images)

Here’s how much Facebook is paying at Hudson Yards

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

The Daily Digest - Tuesday

WeWork bonds hit low, new LLC legislation went farther than intended: Daily digest