Archive for February, 2010

REO Monitor: Paces West, Atlanta

Saturday, February 27th, 2010

Behringer Harvard is reportedly in default on the Paces West office complex located at 2727 Paces Ferry Road SE in Atlanta, about a mile from I-285 and I-75 in Buckhead. Behringer Harvard bought the property in 2006 from Equity Office for $104 million, or about $176/sf, and secured a new ... More

A Closer Look: Top CMBS Loans Underwater

Tuesday, February 23rd, 2010

Trepp recently reported their list of the top 15 underwater properties which make up collateral for CMBS loans and are now REO or in foreclosure. A closer look at the top four properties: Westin O'Hare - Chicago - Securing a $101 million CMBS loan, the property was most recently appraised for 66% ... More

2010: The Year of the Stabilized Deal?

Monday, February 22nd, 2010

As delinquent mortgages mount and most investors remain perched on the sidelines in anticipation of an avalanche of distressed assets, will 2010 end up being remembered as the year of the stabilized deal? Banks and special servicers alike continue to play the waiting game and extend loan maturities for as long ... More

REO Monitor: Riverport Commons IV, St Louis

Sunday, February 21st, 2010

Bank of America's OREO Division has recently listed Riverport Commons IV with Balke Brown Associates for $7 million, or about $60/sf. Developed in 2001 by St. Louis-based TriStar Properties, the 117,000 square foot property was originally occupied by EDS and Magellan Healthcare. Magellan continues to operate a 30,000 square foot ... More

REO Monitor: International Tower, Chicago

Wednesday, February 17th, 2010

Glenstar Properties recently defaulted on International Tower located in Chicago, Illinois, near O'Hare International Airport. Glenstar Properties acquired the 350,000 square foot building in 2000, spent $18 million on renovations and refinanced the property in 2004 with a $35.5 million first mortgage. The partnership began missing payments in June of 2009, following ... More

REO Monitor: Mosaic, Dallas, TX

Tuesday, February 16th, 2010

Mosaic, a 32-story, 440-unit apartment complex located in downtown Dallas is scheduled for a March 2nd foreclosure auction. In 2004, Dallas-based Hamilton Properties bought the Akard Street property which had been vacant for 15 years. Following an extensive renovation, the father-and-son development team converted the property to luxury apartments. ... More

Simon Offers $10 Billion for GGP

Tuesday, February 16th, 2010

In what was not an unexpected move, Simon Properties Group (NYSE:SPG) has offered to buy General Growth Properties (OTC:GGWPQ) for $10 billion. Simon Property Group, Inc. announced that it has made a written offer to acquire General Growth Properties, Inc. in a fully financed transaction valued at more than $10 ... More

REO Monitor: KeyBank Center, Cleveland, OH

Monday, February 15th, 2010

Behringer Harvard has handed the keys back to LNR Partners to KeyBank Center located in Cleveland, Ohio. Behringer Harvard got hit hard after losing several tenants, on top of Keybank gaving back 3 of their 10 floors in the building. The property's occupancy is now 66% according to Jason Mattox ... More

REO Monitor: Chico Mall – Chico, CA

Friday, February 12th, 2010

The Chico Mall has been foreclosed on by LNR Partners. LNR filed to foreclose on the property in February 2009, but the asset was soon part of General Growth's bankruptcy filings. Shortly after GGP re-organized in January, LNR exercised their right to foreclose on the property. Built in 1988, the mall ... More

CPPI is now at Long Run Equilibrium

Friday, February 12th, 2010

In his December edition of Professor's Comments, Dr. David Geltner analyzed where the current Moodys/REAL Commercial Property Price Index (CPPI) was relative to the long run price equilibrium. The chart updates an analysis I have shown in previous commentaries. It presents an extension of the CPPI back to 1969 ... More