Mortgage Observer

$821M in 2005 Loans on Houston Galleria Mall Prepaid

The Galleria in Houston, Texas.

The Galleria, a 2.3 million-square-foot mall that is Houston, Texas’ most visited attraction, has prepaid $821 million in debt at the start of an open prepayment period, Mortgage Observer has exclusively learned.

The CMBS loan that constituted a hefty portion of the debt—$290 million—was conservatively underwritten, with a 47.5 percent loan-to-value ratio and debt service coverage ratio of nearly 2.73, according to data from Trepp.

Indeed, in January, the CMBS data service had warned that “if this loan can’t refinance, the entire CMBS market will be licking its wounds in 2015,” as the “Wall of Maturities,” approached. Read More

Mortgage Observer

Reneging on Retail: Traditional Shopping Centers’ Future Looks Bleak

Last year, Mortgage Observer and others reported that lenders and investors had turned their eye to a new belle of the ball: retail. As the multifamily sector became overly competitive, many looked to the next most stable asset class and in their minds retail was that.

But that was before the bankruptcies of major retailers, such as RadioShack, that anchor a certain strata of shopping center. Following financial troubles for both J.C. Penney and Sears, malls across the nation have been met with foreboding appraisal reductions. Two major shopping centers— Indian River Mall & Commons, in Vero Beach, Fla., and Village at Main Street Shopping Center, near Portland, Ore.—fell into special servicing this week alone, according to data from Trepp. Read More

Mortgage Observer

Retail Lending Surges As Investors Hunt Yield: CBRE

Lender Market Share (CBRE)

Lending on retail properties in the U.S. skyrocketed in the first three quarters of 2014, up more than 50 percent from the same period the year before, a new report from CBRE provided exclusively to Mortgage Observer shows.

Driving the trend was the appetite for yield, as low interest and cap rates drove the expedient investor away from the tried and true multifamily sector and into the arms of retail. Read More

Mortgage Observer

Retail Now—Booming Business or Looming Stagnation?

Sam Chandan

From the vantage point of New York’s most coveted retail storefronts, the recovery in property fundamentals and values is a fait accompli. Rents and price tags for buildings with flashy retail continue rising, surpassing their pre-crisis peaks with increasing regularity. Buyers on the prowl for urban street retail with trophy status—or even a loose resemblance to fixed income—are not alone, but rather are backed up by lenders vying for opportunities to line up their capital behind stable, albeit aggressively valued, properties. Read More

Mortgage Observer

Bullish on Retail Lending

Woodbridge Mall in Woodbridge, N.J.

The majority of real estate leaders—from owners and developers to lenders—all agree that New York City is under retailed. As I reported last year, the Big Apple is the No. 1 retail location in the world and a place where major retailers open their flagship stores and in many instances record the highest revenue of any of their locations nationally. Read More

Design & Spec

Are You Ready for Some Retail?

When it comes to changing the face of a building—or even an entire neighborhood—there’s no denying the power of retail. Lately, Google has made headlines as it searches Soho for a flagship space. Likewise, the recent large-scale retail redevelopment at Brookfield Place at World Financial Center, a project we personally had a hand in as Read More

Lease Beat

Brooklyn Denim Co. Opens Second Location

Courtesy of KDA

Brooklyn Denim Co. is opening a new location in Greenpoint.

The denim retailer will take a 5,700-square-foot space at 39 Norman Avenue, adding a second shop to the original location at 85 North 3rd Street in Williamsburg. The retailer, which sells about two dozen higher end brands, has been rapidly growing in recent years. Read More

Lease Beat

Natuzzi Leaves Soho for Nomad

Natuzzi Americas will be relocating to Nomad.

The Italian furniture retailer will leave its space at 101 Greene Street and move uptown to 105 Madison Avenue. The new lease, set to extend through 2023, will span 4,900 square feet on the ground floor of the building. 

“With this lease, Natuzzi Americas has moved from one furniture district to another, Read More

Sammons Says

Retailing It Around Manhattan

Oh, the week of Thanksgiving—a few days off, a big meal and shopping until your credit cards explode. Yes, it’s that time of year again—Early Bird Thursday, Black Friday, Cyber Monday. There’s a lot of ground I want to cover here (due to the season and due to the expansion of retail locally), so let’s Read More