• EquityNet
    06/29/2015 - 12:09
    Tomorrow at 8pm, we’re adding an extra second to the day. Over the past 200 years, the length of a day has increased by two milliseconds, which is all well and good, but the insane accuracy of the...

CRE

CRE
Tyler Durden's picture

Second Budget Hotel Bankruptcy In One Week, CRE Getting Monkeyhammered





First it was Extended Stay, which filed for bankruptcy last week (and whose unexpected filing may make life for CMBS participants very complicated as the law of unintended consequences strikes again). Today, it is budget hotel chain Red Roof Inn. The company, which owns 210 hotels, defaulted on $367 million of mortgage debt, has a total of $1.2 billion in total debt, including mezz loans and other notes. The company was purchased a mere 2 years ago by Citigroup (yep, the same phenomenal deal makers who wouldn't know how to find their gluteus maximum with a magnifying glass, bought a 79% stake in yet another toxic piece of garbage) from Accor SA for $1.3 billion.

 
Tyler Durden's picture

Moody's: "Sellers Beginning To Capitulate To Realities Of CRE Markets."





Moody's has released its April Moody's/REAL Commercial Property Price Indices (CPPI) update and it is a doozy: -8.6%, after what many had expected was a shooting green reading of just -1.7% in March. The problem that many don't grasp, that even Moody's has finally caught on, is that once capitulation in CRE sets in, the bottom will be torn out.

 
Tyler Durden's picture

Second Budget Hotel Bankruptcy In One Week, CRE Getting Monkeyhammered





First it was Extended Stay, which filed for bankruptcy last week (and whose unexpected filing may make life for CMBS participants very complicated as the law of unintended consequences strikes again). Today, it is budget hotel chain Red Roof Inn.

 
Tyler Durden's picture

Moody's: "Sellers Beginning To Capitulate To Realities Of CRE Markets."





Moody's has released its April Moody's/REAL Commercial Property Price Indices (CPPI) update and it is a doozy: -8.6%, after what many had expected was a shooting green reading of just -1.7% in March. The problem that many don't grasp, that even Moody's has finally caught on, is that once capitulation in CRE sets in, the bottom will be torn out. Furthermore, after the Madison random walk last week, this weekend I did a comparable one for 5th Avenue.

 
Tyler Durden's picture

Green Street Advisors On CRE "Nothing Is Trading; Prices Are Likely Down 35-40%"





As if anyone needed more confirmation just how bad commercial real estate is. Also includes a brief survey on the collapse of the SoCal regional market.

hat tip Alex

 
Tyler Durden's picture

Mike Kirby Of Green Street: "CRE Down 40%, To Drop More"





When REIT consultant Green Street Advisors talks, even the book pumpers listen. Bloomberg reports that Chairman and Director Of Research Mike Kirby, during his keynote address at the UCLA Economic and Real Estate Forecast Conference has noted that not only are CRE property prices down 35-40% already, but in fact have more room to drop.

 
Tyler Durden's picture

Some More CRE Venus Fly Trap Shoots





Between RealPoint and TREPP, any investor who has the reading comprehension of an 8 year old, the excel skills of a moderately well-trained primate and access to either or both of these databases, should be able to extract sufficient data that will promptly indicate just what commercial real estate is shooting up these days. Whatever it is, it sure ain't green.

 
Tyler Durden's picture

Some More CRE Venus Fly Trap Shoots





Between RealPoint and TREPP, any investor who has the reading comprehension of an 8 year old, the excel skills of a moderately well-trained primate and access to either or both of these databases, should be able to extract sufficient data that will promptly indicate just what commercial real estate is shooting up these days. Whatever it is, it sure ain't green.

 
Tyler Durden's picture

RealPoint Downgrades Hundreds of CMBS Classes, CRE Deterioration Accelerates





Commercial real estate powerhouse RealPoint has downgraded several hundred deals and CMBS classes in its April evaluation of the sector.

Realpoint CMBS zerohedge

 
Tyler Durden's picture

RealPoint Downgrades Hundreds of CMBS Classes, CRE Deterioration Accelerates





Commercial real estate powerhouse RealPoint has downgraded several hundred deals and CMBS classes in its April evaluation of the sector.

Realpoint CMBS zerohedge

 
Tyler Durden's picture

Sam Zell: "Very Few CRE Financings In 2003-2007 Are Above Water"





Following up on the theme Zero Hedge discussed that the vast majority of commercial real estate backed loans have negative equity, real estate tycoon Sam Zell yesterday, in a presentation to the Milken Institute, said that "you have a scenario today where you have very few '03 to '07 financings that are above water.

 
Tyler Durden's picture

Will TALF 3.0 Be Enough For A CRE Lazarus Act





Several reports came out today on CNBC and other MSM conduits about a brand new government effort which may consider expanding the already many-times revised TALF program to capture all sorts of commercial real estate securities, including the uber toxic ones, and extend the duration on TALF loans from the established 3 years to 5 or more years.

 
Tyler Durden's picture

CRE Performance By Property Type






prepared by Lehman bros.

In other CRE news, EuroHypo says GGP press release disclosing it is owed $2.6 billion by the bankrupt mall operator is "not correct". Gotta love when two multibillion enterprises (well, one is not so multibillion any more) publicly accuse each other of lies.

 
Tyler Durden's picture

CRE Performance By Property Type






prepared by Lehman bros.

In other CRE news, EuroHypo says GGP press release disclosing it is owed $2.6 billion by the bankrupt mall operator is "not correct". Gotta love when two multibillion enterprises (well, one is not so multibillion any more) publicly accuse each other of lies.

 
Tyler Durden's picture

What John Hancock Tower Sale Implies For CRE





Zero Hedge's feelings about commercial real estate are no secret. Yesterday's sale of the John Hancock Tower to Normandy was an interesting market test, with media reports claiming it implied either nothing much or only good things about CRE and CMBS recoveries. A contrarian (and realistic) analysis on the transaction out of Morgan Stanely implies that based on this deal, not all is good in CRE land. (hat tip to reader David).

****

 
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