Archive for September, 2011

Uptick in CRE Transaction Volume

Thursday, September 29th, 2011

Sure enough, as soon as I comment on a slow down in transaction volume, there is an avalanche of new blockbuster deals. Just to note a few of the biggest recently announced: Blackstone’s Purchase of Equity One Portfolio Signals Confidence in Retail National Real Estate Investor - Sep 29, 2011 On Sept. ... More

More on Moody’s CPPI July Results

Tuesday, September 27th, 2011

Moody's reported that its Commercial Property Price Index (CPPI) was up 5% in July and that most of the increase was due to middle market asset pricing: As in June, the broad middle market (non-major assets and non-distressed assets) drove the bulk of the overall increase of 5.0% in the July ... More

PwC Real Estate Investor Survey Q3 2011

Friday, September 23rd, 2011

PricewaterhouseCoopers has released its 2nd half survey findings for 2011. Through the first half of the year, most investors sounded cautiously optimistic about the rest of 2011. Not surprisingly, strong demand for multifamily product was noted. National Highlights As the United States faces an array of challenges, many investors view the commercial ... More

Moody’s/REAL CPPI up 5 percent in July

Friday, September 23rd, 2011

Moody's/REAL Commercial Property Price Index (CPPI) rose by 5% in the month of July. The Moody’s/REAL Commercial Property Price Index advanced 5 percent from June. It’s up 1.2 percent from a year earlier and almost 13 percent from its post-peak low in April, the New York-based company said in a report ... More

REO Monitor: Westgate City Center, Glendale, AZ

Tuesday, September 20th, 2011

Lender iStar Financial has foreclosed on Westgate City Center located in Glendale, Arizona, a suburb of Phoenix. According to a Wikipedia post: Ellman acquired Westgate in 2006 by swapping his ownership in the Coyotes for Jerry Moyes' ownership share of Westgate. Ellman had moved the Coyotes to Glendale in 2005 after ... More

Moody’s CPPI and Cap Rate Compression

Thursday, September 15th, 2011

As part two to yesterday's post, I wanted to examine how much of the bubble in Moody's/REAL CPPI was attributable to cap rate compression, and the portion which was attributable to something else (eg. rent growth, increase in occupancy, etc.). A disclaimer, I am in no way a statistician, but I ... More

Commercial Real Estate Verses Bonds

Wednesday, September 14th, 2011

There has been lots of discussion (here and here) around the current cap rate environment, particularly for trophy assets. Most would agree that declines in trophy cap rates have followed US Treasuries, as T-Bills remain at historic lows. I wanted to step back and take a look at a 10-year perspective ... More

REO Monitor: AT&T Tower, Jacksonville, FL

Tuesday, September 13th, 2011

Berkadia Commercial Mortgage has transferred the loan on AT&T Tower, located in downtown Jacksonville, Florida to CW Capital Asset Management for special servicing. This action was prompted by the expiration of CSX's lease at the property. Sunrise, Fla-based Elad National Properties purchased the 956,000 square foot property in 2004 for $90.9 ... More

CBRE Cap Rate Survey 2011

Monday, September 12th, 2011

As we've referenced before, CBRE's Capital Markets Group conducts one of the more useful cap rate surveys available. You may view the full report on Scribd. An excerpt of CBRE's commentary from this report: U.S. commercial real estate markets have been in recovery for well over a year now. Low interest rates ... More

REO Monitor: 700 17th Street, Denver, CO

Tuesday, September 6th, 2011

The Denver Business Journal has reported that US Bank has filed to foreclose on 700 17th Street, a 24-story office building located in downtown Denver, Colorado. The $17.6 million foreclosure has been filed against the property's current owner, Toma West. Toma West bought the property in 2006 for $27.25 million from ... More