The salad days for CMBS are back!
Just a couple weeks after the first commercial mortgage-backed securities deal in a year went down, two more are on their way. It’s like 2007 all over again (and, in a related note, as if 2007 never happened).
Second to the market is Inland Western Retail Real Estate Trust won $625 million in fresh financing yesterday from JPMorgan Chase, which plans to turn the $500 million first-mortgage part into CMBS. Those who like to live on the wilder side can pick up some of the $125 million mezzanine debt in a private placement.
Fortress Investment Group is getting back in the game as well, marketing $460 million in CMBS backed by the private equity firm’s real-estate portfolio and Bank of America, which is leading the sale.
But here’s the best news: Neither deal needs Tim Geithner’s pocket change.
Both the Inland Western and Fortress deals are expected to go down without investors resorting to TALF funds, despite the program’s extension. The first CMBS of the year, Developers Diversified’s Frankenbond, did offer TALF funding, but most investors turned up their noses at it.
J.P. Morgan Expected to Sell $500 Million of Inland Western Debt as CMBS [WSJ]
Here Are Some Thoughts On Men And Wall Street
Jerk Running Ferry To Fire Island Not Up On The Celebs Of Financial Reform
Blanus,
Bess may have bamboozled the rest of the commentariat, but I have you pegged as a CMBS geek. Jon Shazar = Greggums fo sho.
I’m going to superglue your weiner to your taint and give you a built-in bidet.
-Not the Macke but a fan of his work
It’s ok Greg…you can post your favorite picture if you want, we won’t say anything today.
The “Greg” jokes were played out long ago. Every time a more serious post comes out on this site there’s one intelligent comment related to it and about 8 foul Tourettes outbursts directed at an editor who doesn’t even write for the site anymore. Shut up already! On the other hand I doubt the literary genius who wrote #1 has much of anything worthwhile to say about CMBS…
buy protection on the whole stack
@3 : “doesn’t write for the site anymore”? Lady, I have some prime commercial RE to sell you. In the form of mezzanine debt off a 3% cap rate property located on the strip in Vegas. DSCR 0.95 but projected to improve to 1.1. My offer is 101.25 and bidding interest is strong. Can I put you down for a 70% ticket which will probably allocate down to 10%?
Hope this is more topical.
Also, I’m gonna replace all your granny panties with thongs so you quit having to unwedge them so often.
-Not the Macke but a fan
Dude @1,
Just a technical question: What do you do with the nutsack in this situation? All compressed to one side or the mushroom-rod splits it right down the middle?
@6/NC Good question, I’d think you gotta go with the Meat Ball Sandwich (MBS).
- not 1
Jon Shazar, ignorance is bliss, you might want to know a little bit about the market before you start publishing on the subject.
@8, e-mail him some pointers: tips at dealbreaker dot com
Jon,
CMBS – low leverage, single borrower (DDR or Indland) does not equal CMBS Conduit deal
Stick to markets you know, because clearly you know nothing about this one.
Jon, do us all a favor and pack your shit up and GTFO ASAP!