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]