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California  + Retail  | 

Sluggish CMBS Issuance Awakens, Skyrockets in Q2

CMBS issuance soared in the second quarter of 2017, with more than $21.2 billion in CMBS loans closing in Q2, according to the latest Trepp report. That more than doubled activity recorded between January and March 2017 ($10.5 billion) and brings the H1 2017 total to roughly $31.7 billion.

That burst of activity countered the affects of loan inventory clear-outs in preparation of risk retention regulations that slowed down activity earlier in 2017. The CMBS space is adapting to retention requirements, gaining a stronger handle on the process, and new benchmark pricing levels for these deal types are slowly stabilizing.

The share of retail loans in total issuance fell to 13.56% in the second quarter, down from 15.19% in Q1. Retail historically backed about one-fourth of newly securitized mortgage totals. The main drivers of year-to-date CMBS issuance has been hotels and trophy office towers in CBDs.

Category breakdowns for 30 CMBS closings between April and June 2017:

  • Vertical risk retention: 12 deals, less than 40% of the issuance balance
  • Horizontal structure: 12 deals totaling $7.41 billion (35.01%)
  • Hybrid or “L-shape” strategy: six securitizations totaling $5.32 billion (25.16%)

For comments, questions or concerns, please contact Dennis Kaiser

Connect

Inside The Story

Read more at Trepp

About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

  • ◦Financing
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