New CMBS issuance in June hit $3.4B in
New York

Three single-asset deals comprised $2.2B

New York /
Jul.July 14, 2017 05:20 PM

June was an active month for New York’s CMBS market, topping the year for total new issuance and number of collateralized properties.

A total of $3.4 billion in new commercial mortgage-backed securities was issued in June, bringing the total market in to $59.3 billion, according to Trepp data prepared for The Real Deal.

The delinquency rate for CMBS loans ticked up slightly to 0.56 percent in New York, alongside the the national delinquency rate, which continued its upward trend to 5.75 percent, the highest it has been since December 2014.

Three single-asset deals comprised more than half of the new issuance in New York, with a total of $2.2 billion backed by the 50-story GM Building, Vornado Realty Trust’s Bloomberg Tower, and the Mark Hotel.

In June, Boston Properties refinanced the GM Building, home of the Apple cube, with a $2.3 billion interest-only mortgage from Morgan Stanley with a fixed interest rate of 3.43 percent, replacing a $1.6 billion financing package with an interest rate of 6 percent. A $1.5 billion slice of that was securitized in a 10-year deal, with the property awarded a 47.9 percent loan-to-value ratio.

Also in June, Vornado refinanced the Bloomberg Tower at 731 Lexington Avenue with a $500 million mortgage with a 2 percent floating interest rate. It was then securitized by Deutsche Bank into a three-year CMBS conduit with a 34.5 percent LTV.

The remaining $1.2 billion in new issuance was spread across eight deals, backed by 42 properties, including 245 Park Avenue, 85 Broad Street and the Yeshiva University portfolio.

“Having so much issuance to end the quarter is a good sign,” said Sean Barrie of Trepp. “The market’s been warming up more and more, and it looks like new issuance will remain pretty warm through July.”


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
29 West 34th Street and Jeff Sutton of Wharton Properties (Google Maps)
Jeff Sutton will get $9M back from Geox
Jeff Sutton will get $9M back from Geox
Top loans: Related Companies exits Margaritaville, digs in at Truffles Tribeca
Top loans: Related exits Margaritaville, digs in at Truffles Tribeca
Top loans: Related exits Margaritaville, digs in at Truffles Tribeca
CMBS issuance is set to break Great Financial Crisis record, report
CMBS set to break Financial Crisis record
CMBS set to break Financial Crisis record
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
Aby Rosen dodges liability at Gramercy Park Hotel
NYCB CEO Thomas Cangemi (Getty, Cangemi)
NYCB says multifamily loans in good shape, not endangered by rent law
NYCB says multifamily loans in good shape, not endangered by rent law
2 N Lasalle Street & 200 W Jackson Boulevard in Chicago (us.jll.com, hearncompany.com)
NY’s Foundation Capital, Nightingale aim to buy Loop office towers
NY’s Foundation Capital, Nightingale aim to buy Loop office towers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...