Also Money Raising by: Virtus Real Estate Capital, Artemis Real Estate Partners, Starwood Capital Group and others
Goldman Sachs is the putting out the first new CMBS offering of 2012.
GS Mortgage Securities Trust 2012-GC6 is a pool of 80 fixed-rate loans totaling $1.15 billion and backed by 127 properties.
The loans were originated by Goldman Sachs Mortgage Company (45.8%), Citigroup Global Markets Realty Corp. (45.1%), and Archetype Mortgage Funding ILLC (9.1%).
According to Moody's Investors Service, the concentration of multifamily and manufacturing housing properties (23.3% of the pool balance) is high compared to other multi-borrower deals it has rated since the Great Recession, which is a good thing. Multifamily and manufactured housing properties historically exhibit lower severity rates than other commercial property types.
However, the deal also has a high concentration of hotel properties (16.3% of the pool balance). Relative to other CRE sectors, the cash flow streams derived from lodging properties are volatile given their daily pricing structure and low cash flow margins, Moody's reported.
The deal also has a relatively high concentration of properties located in small markets (48.4% of the pool balance), which also tend to exhibit greater cash flow and cap rate variability over time in contrast to assets located in major markets.
The three largest loans in the pool are as follows.
$124.7 million on Meadowood Mall an 876,848-square-foot in Reno, NV, owned by The Mills LP. The mall is anchored by four tenants, J.C. Penney, Sears, and two Macy's stores (Macy's North and Macy's South (Macy's Men's and Home)). Except for the Macy's South store, all of the anchors are independently owned and not contributed as collateral for the loan. The property was renovated in 1996 with the addition of Sears, the food court, and additional inline shop space. As of November 2011, the property was 86.6% occupied excluding dark space previously occupied by Sports Authority.
$100 million on a portfolio of 12 manufactured housing communities owned by Equity Lifestyle Properties. The properties are in Florida, Illinois, California, Connecticut, Texas and Michigan. The portfolio consists of 5,225 pads and was approximately 93.9% occupied as of October 2011.
$61.9 million on the SunTrust International Center in Miami owned by Crocker Partners. The SunTrust International Center is a Class B+, 31-story, CBD
office building above an eight-level parking garage. The office tower contains 33,925 square feet of ground floor
retail space consisting of a Walgreens, SunTrust Bank and a Bank of America branch. In aggregate, the building offers 420,857 square feet of rentable office and retail space.
Capital Raisings; Property Financings
Virtus Real Estate Capital
in Austin, TX, launched a $500 million fund, the Virtus Real Estate Capital, LP. The fund will combine all four of Virtus' preferred property types: self-storage, student housing, senior housing and medical office. No more than 40% of leveraged equity will go to any asset class. Capital deployment will occur over the next 24 to 36 months, with the first acquisitions slated to be made in the first quarter of 2012. It will focus on the Sunbelt markets, but will invest nationally, pursuing an income plus growth through value-added strategy by making off-market, opportunistic acquisitions and recapitalizations. Final closing is projected for December 31, 2013.
Artemis Real Estate Partners
in Washington, DC, formed Artemis Real Estate Partners Fund I LP, a $436 million fund. The fund held its final closing on January 6, 2012, raising capital from a diverse investor base including public and private pension funds, foundations, family offices and high net worth individuals. The fund was formed to make opportunistic debt and equity investments in office, retail, industrial, multifamily and senior housing properties, with an initial focus on distressed situations and nonperforming loans. Paul Hastings LLP, a leading global law firm, worked with Artemis on the fund formation.
Starwood Capital Group
in Greenwich, CT, acquired a commercial loan portfolio with an outstanding principal balance of $312 million from a Southwestern regional bank. The portfolio consists of 106 first mortgage loans and real estate owned (REO) assets. Roughly half the loan portfolio is performing. The collateral represents all property classes, including, office, retail, multifamily, commercial land, hotel, residential and other asset types. Geographically, 70% of the loans are concentrated in Texas, followed by Colorado and Arizona.
Cedar Realty Trust Inc.
in Port Washington, NY, closed a new $300 million senior secured credit facility. The facility is comprised of a 4-year, $75 million term loan and a 3-year $225 million revolving credit facility. Borrowings under the new facility are initially priced at LIBOR plus 275 basis points and can range from LIBOR plus 200 to 300 basis points based on the company's leverage ratio. Under an accordion feature, the credit facility can be increased to $500 million. This facility replaces both the company's prior $185 million secured revolving credit facility for stabilized properties and its $150 million secured construction facility.
Parapet Capital Management
was formed by John Walsh, Edward Gray, and Stan Ford to acquire middle market real estate and debt. Walsh and Ford will both continue their duties with TIG, a Dallas based property manager and broker. Gray left Beal Bank where he had been involved with the diligence and acquisition of well more than $1.8 billion of real estate debt. Parapet Capital is now beginning to reach out to placement agents.
Acadia Realty Trust
in White Plains, NY, established an at-the-market equity program with an aggregate offering price up to $75 million. The company intends to use the net proceeds to repay debt and for future acquisitions.
AIG Global Real Estate Investment Corp.
secured a $56 million refinancing for Sterling Collwood, a 260-unit, Class AA student housing community near San Diego State University. HFF placed the 7-year, 4.57% fixed-rate loan with M&T. Loan proceeds are refinancing an existing construction loan.
Hudson Pacific Properties Inc.
in Los Angeles closed a 10-year term loan totaling $43 million with PNC Bank secured by the company's First Financial Plaza property. The loan bears interest at a fixed annual rate of 4.58% and will mature in January 2022. Proceeds from the loan were used to repay indebtedness under the company's secured revolving credit facility. Located in Encino, CA, First Financial is a six-story, 222,423-square-foot, multi-tenant office building.
Agree Realty Corp.
in Farmington Hills, MI, raised $31.2 million in a public stock offering. The company intends to use the net proceeds to repay debt under its $85 million credit facility, to fund development activity and property acquisitions.
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