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Almost $60 million in debt backed by 1515 Market St. was transferred to special servicing in December, adding the 20-story building to the growing list of distressed office properties surrounding City Hall. The building's owner, Florida-based Accesso Partners, has a $59.4 million balance on the loan it took out to acquire 1515 Market for $85 million in 2014. The loan, which was originated by JPMorgan Chase & Co. before being converted into a commercial mortgage-backed security (CMBS) and sold to investors, is set to mature in January 2025. Contacted by the Business Journal for comment, Accesso issued a statement saying...

US Treasury Secretary is the God of Hellfire! Thanks to Yellen’s catestrophic Too-Low-For-Too-Long (TLFTL) and insane Federal spending, we are seeing the aftermath of The Fed trying to fight inflation. A fire sale of failed bank assets!! With interest rates still rising, prices retreating and credit evaporating—and a stressed-out banking system moving to shore up balance sheets—expect more fire sales of older CMBS loans and an acceleration of plunging CRE values in markets across the US. Last month, a fire sale of CMBS loans was lit as $72B in assets from the failed Silicon Valley Bank (SVB) were sold. The...

I was on Fox News with Tom Sullivan yesterday to discuss the housing “recovery.” Rick Sharga (formerly of RealtyTrac and now Carrington Mortgage Holdings) was the guest before me and said that we are witnessing the sustainable recovery of the housing market. I simply pointed out that the “recovery” thus far is dominated by hedge funds, corporations, cash transactions and foreign investors and not the traditional family purchase of housing. So, it may be a recovery, but not your father’s Oldsmobile (so to speak). And don’t forget the fiscal cliff and the large volume of foreclosed properties about to hit...

Commercial Real Estate Clouded by Delinquencies Published: Wednesday, 4 May 2011 | 1:28 PM ET By: Diana Olick CNBC Real Estate Reporter Barely a few minutes after reading an article in the Wall Street Journal about banks finally opening the "spigot for commercial real-estate," the folks over at Trepp issued their monthly report on the delinquency rate for commercial mortgage backed securities (CMBS); let's just say it isn't good. After two months of very minimal rate increases, the number jumped in April, 23 basis points, to 9.65 percent, "the highest reading in the history of the CMBS market," according to...

A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone and other investors, the largest repayment failure of its kind in Japan. It marks the latest fallout from a series of highly leveraged investments by Morgan Stanley , one of the most aggressive investors in worldwide property markets before the global financial crisis. .. This is the largest repayment failure of debt packaged in CMBS in Japan

Evidence of the federal government's growing influence on Washington area commercial real estate is illustrated in big deals it is working on both sides of the table: auctioning a 127,000-square-foot Bethesda building previously occupied by the National Institutes of Health and moving to snatch up vast spaces in buildings on the private market that have been vacant for months. The General Services Administration is seeking to unload the 10-story building that the NIH vacated in 2002 when it consolidated offices into other buildings in Bethesda. The recommended opening bid for the online auction, which runs from April 30 to July...

On top of the previously announced record delinquency rate for Fannie, here comes some even worse news out of commercial real estate, which together with record high downtown vacancy rates, should be enough to push all REITs to 1052 week highs tomorrow. RealPoint has just released its March CMBS delinquency data, according to which delinquencies hit an all time high 6%. Not to be ignored, according to TREPP this number is even worse, at nearly 8%, after the single biggest monthly spike in 30 day + delinquencies. In February 2010, the delinquent unpaid balance for CMBS increased by another $1.87...

On one hand you have Moody's REAL CPPI index telling you commercial real estate prices not only bottomed in December, but are now increasing at the fastest rate in years. On the other hand you have reality staring you in the face (that is if you are reading the February RealPoint CMBS report), in the form of $46 billion in CMBS delinquencies in January: this was a record 5.762% of total, and represents a 325% increase from the $10.8 billion inJanuary 2009 (and a 10% increase sequentially). Contrary to all propaganda punditry, the rate of deterioration in commercial real estate...

CMBS Delinquencies Soar, Led by Hotel Defaults: Trepp 12/04/2009BY: CARRIE BAY The secondary market for commercial real estate is just beginning to show new life, with the first successful sale of a commercial mortgage-backed securities (CMBS) package in over a year and several new issues in the wings spurred by the strong investor interest on that initial offering. But the positives of renewed activity are tempered by more bad news on the performance of those commercial bond deals made before the freeze. According to a new report from commercial research provider Trepp, delinquent loans in commercial mortgage securities jumped 85...

Moody’s Expects US CMBS Delinquencies to Reach 5-6% Moody’s now expects the aggregate rate of delinquencies among US Commercial Mortgage-Backed Securities to reach 5% to 6% by the end of this year. Moody’s latest CMBS Delinquency Tracker (DQT) records the aggregate rate of delinquencies among US CMBS conduit and fusion loans at 2.67%, based on data through the end of June. This represents a 40 basis point increase from the prior month’s 2.27% rate. By comparison, the DQT was 0.46% a year ago and is now 245 basis points above the low of 0.22% measured in July 2007. "Hotels saw...

Welcome to Lesson 1 of ‘The Basics of Credit Derivatives’. For this lesson I will be referencing the following article: The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse?, which was published in November 2005 by the Wharton School at the University of Pennsylvania. My comments will be in Red. Let’s get started: The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse? Published: November 02, 2005 in Knowledge@Wharton When Delphi filed for bankruptcy October 8, investors had to start assessing their losses on more than $2 billion in the auto parts maker's bonds, which have recently...

Lesson 1 can be found here: Lesson 1 Welcome to Lesson 2 of ‘The Basics of Credit Derivatives’. For this lesson I will be referencing the following article: The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse? , which was published in November 2005 by the Wharton School at the University of Pennsylvania. My comments will be in Red. Let’s get started: The Ballooning Credit Derivatives Market: Easing Risk or Making It Worse? (continued) Published: November 02, 2005 in Knowledge@Wharton Credit Default Swaps Credit derivatives are contracts that go up or down to track the fortunes of underlying...

116 BCT Commander, Brig. Gen. Alan Gayhart (L), presented these six Soldiers of TF 3-116 Armor the Combat Medical Badge, September 30. FOB WARRIOR, Iraq - Six Soldiers of TF 3-116 Armor were awarded the Combat Medical Badge, while 10 others were presented commander's coins, prior to a Town Hall meeting held by 116th BCT Commander, Brig. Gen. Alan Gayhart, September 30. The six Soldiers of TF 3-116 AR who were personally awarded the Combat Medical Badge by Brig. Gen. Gayhart, were Spc. Isac Witcraft, Spc. Clayton Stevens, Spc. Jeremy Kitchen, Sgt. Benjamin Dyson, Sgt. John Kreider, and Sgt....

Deutsche Puts Two Mortgage-backed Trades on Leave New York, Nov. 26 (Bloomberg)-- Deutsche Bank AG placed two traders on administrative leave as it investigates mispricing of some of the firm's secondary trading positions of commercial mortgage-backed securities. Deutsche Bank placed Jake Markman and Paul Mashikian on administrative leave while the firm conducts the investigation, according to spokesmen Ted Meyer. The mispricing may result in more than $30 millions in losses, according to the report in Bond Week, which cited an individual with knowledge of the situation. The publication earlier reported that the two traders were placed on leave. Meyer said...