Mortgage Observer

Mortgage Observer

High Spreads in $1B Atlantis CMBS Issuance


The $1 billion Atlantis CMBS offering, collateralized by a single, 245-acre, 2,917-room resort property located in Paradise Island, Bahamas, exhibits higher than normal spreads for its fixed-rate AAA-class certificates, due in part to corresponding risk, Mortgage Observer Weekly has learned.

BREF ONE LLC’s Series A, a fund affiliated with a subsidiary of Brookfield Asset Management, sponsored the $1 billion mortgage for the resort, according to a Standard & Poor’s pre-sales report, released Aug. 4. The loan, divided into a $650 million fixed-rate and $350 million floating-rate component, was provided by Deutsche BankMorgan Stanley and Citigroup. Read More

Mortgage Observer

NYCB Lends on 1770 Grand Concourse in the Bronx

1770 Grand Concourse.

New York Community Bank provided a $27.4 million loan to Goldfarb Properties on its recently purchased rental building at 1770 Grand Concourse in the Bronx, sources confirmed to Mortgage Observer.

The 12-year mortgage carries an interest rate of 3.625 percent, according to NYCB. Among the loan’s terms is a 2 percent interest rate hike if the borrower fails to submit required financial information, including income and expense statements, twice a year, according to the loan document. A spokesperson for the bank said that provision is standard among all of NYCB’s commercial real estate deals. Read More

Mortgage Observer

Meadow Partners Acquires Former Menachem Stark Property in Williamsburg With M&T Loan

100 South 4th Street.

Keeping true to its “relationship lender” motto, M&T Bank provided a $36 million loan to help fund a recent Meadow Partners acquisition, taking a bet on a beleaguered multifamily loft building in Williamsburg, Brooklyn, sources familiar with the negotiations told Mortgage Observer.

The Midtown-based investment firm acquired the rental property at 100 South 4th Street, which was developed by the late Menachem Stark and his partner Israel Perlmutter for $52 million, on Aug. 7, taking it out of a five-year bankruptcy process. Read More

Mortgage Observer

Terra Capital and Bank of America Finance Marriott Warner Center Deal

The Marriott Warner Center.

Terra Capital Partners provided $22 million of preferred equity to Los Angeles-based Laurus Corporation to help fund the development firm’s acquisition and renovation of the Marriott Warner Center hotel in Woodland Hills, Calif., the mezzanine lender told Mortgage Observer.

Terra worked together with Bank of America, which provided $74.5 million in first mortgage financing towards the $110 million project. Both the senior loan and the preferred equity carry three-year terms with two one-year extension options. Read More

Mortgage Observer

BofA Agrees to $16B in Penalties for Bad RMBS—the Biggest Settlement in American History


Bank of America has agreed to pay over $16.6 billion to end federal and state probes into its mortgage bond sales, U.S. Attorney General Eric Holder announced in Washington, D.C. this morning. The fine—which takes the form of penalties as well as consumer relief—is the largest civil settlement with a single entity in American history.

While other banks have paid hefty sums to settle similar claims (Citigroup paid $7 billion and J.P. Morgan $13 billion), the punishment is by far the most severe meted out by the government for behavior pre-2008.  Read More

Mortgage Observer

Interest-Only Is Back!

Interest-only loans from non CMBS lenders have returned

Meridian Capital Group arranged $47.5 million in financing for a nine-property multifamily portfolio located in Manhattan, Yonkers and Mount Vernon—and all nine loans had lengthy interest-only periods.

Manhattan-based residential owner, broker and manager Coutinho Properties received funds from three different lenders for acquisitions and refinancings in and around New York City. Meridian Capital Group Vice President Isaac Filler handled the negotiations. Read More

Mortgage Observer

Chase CTL Refinances Manhattan and Queens Portfolio to Fund Acquisition

Chad Tredway left, and Peter Dooley of Chase

Chase Commercial Term Lending’s Northeast team, led by Chad Tredway, provided $25 million in financing to New York-based Ventura Land Corp. for nine multifamily and mixed-use properties in Upper Manhattan and Queens, Mortgage Observer has exclusively learned.

The 30-year loan carries a five-year fixed interest rate, which then converts to a floating rate for the remainder of the loan’s term, according to Mr. Tredway. “This five-year hybrid is one of the most common and flexible products the group offers,” he said. Read More

Mortgage Observer

Thor Refis Carlton House Retail with $175M from Morgan Stanley

680 Madison Avenue

Thor Equities refinanced its retail condominium at the base of luxury co-op The Carlton House at 680 Madison Avenue with Morgan Stanley, a source confirmed to Mortgage Observer. The $175 million first mortgage closed last month, according to records recently filed with the city.

Thor purchased the building’s block-long retail space for $277 million in January 2013—one of the highest prices ever paid for a retail property on Madison—from Extell Development, which is in the process of converting the upper floors into cooperative residential units. Read More

Mortgage Observer

Two Ark Partners-Owned Hotels in Special Servicing

Two Manhattan hotels owned by New York-based Ark Partners have been transferred to special servicing, according to data from Trepp and Real Capital Analytics.

The $19 million loan for the Mansfield Hotel, at 12 West 44th Street, and the $33.9 million loan for the Shoreham Hotel, at 33 West 55th Street, were moved to an unspecified special servicer last month, according to data from the real estate analytics companies. Read More

Mortgage Observer

MetLife Refinances Shorenstein Properties’ 850 Third Avenue

850 Third Avenue.

MetLife is providing Shorenstein Properties with a $170 million floating rate loan to refinance the San Francisco-based firm’s office property at 850 Third Avenue, originally known as the Western Publishing Building, Mortgage Observer has first learned.

The term of the loan will be for three years, according to MetLife, and will replace a $180 million loan provided by Deutsche Bank in 2010. Read More

Mortgage Observer

GE Capital Provides $100M Financing for Midtown Hilton Hotel

Hilton Homewood Suites at 312-318 West 37th Street.

GE Capital Real Estate has provided $100 million in take-out financing to a joint venture between Rockwood Capital, Albanese Development Corporation and The Buccini/Pollin Group for a new hotel near Times Square, Mortgage Observer has first learned.

The loan replaces construction financing for the recently opened Hilton Homewood Suites located at 312-318 West 37th Street between Eighth and Ninth Avenues. Read More

Mortgage Observer

Manhattan Condop Gets $18M Refi

150 West End Avenue

Meridian Capital Group negotiated an $18.4 million loan to refinance the residential cooperative portion of a condop on the Upper West Side, Mortgage Observer has exclusively learned.

Life insurance company Principal Real Estate Investors provided the loan for 150 West End Avenue, Principal Director Rob Dirks confirmed to MO. Read More