See GRAPEVINE on Back Page

THE GRAPEVINE
MAY 18, 2012
12 REIT CREDIT RATINGS
14 LARGE LOANS IN SPECIAL SERVICING
3 Principal, Canada Pension Snag Mezz
3 CIBC, Blackstone Turn to JP Morgan
3 Capital One, JP Morgan Win Big Loan
4 JP Morgan to Back Ex-Lembi Rentals
6 Invesco Seeks Loan for Safeway Deal
6 Fund Shop Writes Chicago, NY Loans
7 Confab Focus: New Rules, Bad Debt
7 CRE Finance Council Names Offcers
8 Guggenheim Adds Four Executives
8 Eightfold Snags Another B-Piece
9 Capstone, KABR Scoop Up Sour Debt
10 Huntington Shops Fla. Apartment Debt
10 CBRE Inks Colo., Texas Freddie Loans
10 Blackstone Funds Mezz for Normandy
10 Beech Street Lines Up Fannie Loans
Cantor Fitzgerald hired Edward Petti
this week as a managing director on
its origination team in New York. Petti
previously was an executive director with
Ladder Capital, originating bridge loans
and mortgages for the New York frms
commercial MBS program. Hell work on
the same kinds of deals at Cantor, with a
focus on fxed-rate loans. He reports to
Anthony Orso, chief executive of Cantor
Commercial Real Estate. Petti had previ-
ous stints at Arbor Commercial Mortgage
of Uniondale, N.Y., and Credit Suisse.
Timothy Hallock joined Bancorp Bank
last week as a managing director of
CMBS Shops Eye Loan on GGPs Vegas Malls
General Growth Properties is on the prowl for $650 million of debt on two shop-
ping centers on the Las Vegas Strip.
Te collateral is the Grand Canal Shoppes at the Venetian and the Shoppes at
the Palazzo, which are connected by pedestrian walkways. Te properties, which
encompass 768,000 square feet, currently have separate loans.
Te early buzz is that the assignment is likely to end up in the securitization
market. While commercial MBS lenders have had difculty competing with life
companies recently for large loans on high-end malls, the size and the specifc
nature of the collateral make it more suitable for securitization platforms, lenders
said.
Te Chicago REIT, which is being advised by Eastdil Secured, prefers a mortgage
with a term of 5-7 years and will consider fxed- and foating-rate proposals.
Te 498,000-sf Grand Canal Shoppes is inside the Venetian casino. Te Venice-
themed mall has 80 shops and restaurants, but no anchor stores. Tenants include
See VEGAS on Page 8
Financial Jitters Send CMBS Spreads Wider
Volatile market conditions and other factors prompted commercial MBS buyers
to demand higher yields than expected on two multi-borrower oferings this week,
forcing new-issue spreads wider than they had been all year.
Te benchmark super-senior class of a $1.6 billion conduit issue by Jefferies
LoanCore, Goldman Sachs, Citigroup and Archetype Mortgage Capital was being
shopped yesterday at 130-135 bp over swaps. Tat was up from earlier price talk
of 120-125 bp and from the 120-bp issuance spread on equivalent 10-year bonds in
the previous multi-borrower issue, on April 24. By late yesterday, the dealers had
lined up buyers for about 70% of the $673.9 million tranche. Te transaction was
expected to price today.
A $933 million conduit ofering by Cantor Fitzgerald and Deutsche Bank is
expected to price soon afer the Jeferies deal, at similar spreads. Tat deals $409.2
See JITTERS on Page 11
Tishman to Buy SF Tower, Seeks Financing
Tishman Speyer has agreed to buy the ofce building at 650 California Street in
San Francisco and is shopping for $130 million of fnancing.
New York-based Tishman is acquiring the property from investment manager
AEW Capital of Boston. Lenders said the loan-to-value ratio on the proposed mort-
gage would be about 60%, indicating that the purchase price is roughly $220 mil-
lion.
Tishman is seeking a fxed-rate loan with a term of 7-10 years. Eastdil Secured,
which is brokering the sale for AEW, is also advising Tishman on the loan. It is
showing the assignment mainly to insurers and other portfolio lenders.
Te 492,000-square-foot building, between Kearny Street and Grant Avenue,
is regarded as one of San Franciscos top-tier ofce properties. Its occupancy rate
is 92%. Tenants include law frm Littler Mendelson (111,000 sf until 2016), Credit
Suisse (62,000 sf until 2020) and advertising agency Goodby Silverstein (51,000 sf
See TISHMAN on Page 8
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May 18, 2012
Commercial Mortgage
ALERT 3
Principal, Canada Pension Snag Mezz
Principal Real Estate and Canada Pension Plan have funded
$80 million of mezzanine debt on the Walden Galleria mall in
suburban Bufalo.
Te debt is the junior portion of a $350 million fnancing
package that J.P. Morgan arranged for the malls owner, Pyramid
Cos. of Syracuse, N.Y. Te bank is securitizing the senior $270
million portion via a stand-alone commercial MBS ofering
that is expected to price today (see article on Page 1).
Principal, an investment manager in Des Moines, Iowa, took
down $30 million of senior mezzanine debt. Toronto-based
Canada Pension, a defned-beneft plan that provides pension,
disability and survivor benefts to Canadian residents, funded
the $50 million junior mezzanine piece.
Te fxed-rate debt package, which closed on April 26, has a
10-year term. Te coupon on the senior portion is 4.88%. Te
mezzanine debt has a weighted average interest rate of 5.875%.
J.P. Morgans decision to securitize the senior portion in a
single-asset transaction took many in the market by surprise.
Te bank was expected to break the loan into pieces and include
them in two or more multi-borrower transactions.
Its unclear why the bank might have changed course. But
rival lenders said that if J.P. Morgan wrote the loan with the
expectation of securitizing it via multi-borrower transactions,
it may now take a hit. Tats because single-borrower paper
typically commands lower prices. Whats more, the size of the
senior portion is at the low end of the range at which single-
asset transactions are economical.
Te debt package is backed by 1.2 million square feet of the
1.6 million-sf mall, which is in Cheektowaga, N.Y. Te stores of
anchor tenants Macys and Lord & Taylor are separately owned
and arent part of the collateral. Te other anchors are Sears and
JC Penney. Te collateral space, which was appraised at $600
million, is 87.4% occupied. Te in-line space has average sales
of $580/sf.
Pyramid used $291 million of the J.P. Morgan loan to retire
a maturing debt package. Eurohypo securitized the senior $232
million portion via a $1.6 billion foating-rate deal in 2007 (J.P.
Morgan Chase Commercial Mortgage Securities Corp., 2007-
FL1).
Tis is the second time this year that Pyramid is tapping
Canada Pension for mezzanine fnancing. Earlier, the Cana-
dian institution provided the $145 million senior mezzanine
portion of a $420 million foating-rate debt package that J.P.
Morgan arranged on the Carousel Center/Destiny USA retail
complex in Syracuse.
CIBC, Blackstone Turn to JP Morgan
CIBC World Markets and Blackstone have tapped J.P. Morgan
to underwrite the securitization of $750 million of commercial
mortgages that they originated via a joint venture.
Blackstone will retain the junior classes of the long-
awaited securitization, which is expected to hit the market
in June.
CIBC and Blackstone formed the joint venture, called CIBX,
in late 2010. It was capitalized with $125 million of equity and
$625 million of debt. CIBC provided the debt in the form of a
warehouse line, while both frms kicked in equity. CIBC and
Blackstone are equal partners in managing the operation, but
loan underwriting is overseen by CIBC.
Te CIBC deal will be part of a busy June lineup of multi-
borrower oferings. Also on tap for that month are a $1.5 billion
deal by Deutsche Bank, Ladder Capital and Guggenheim Part-
ners, a $1.4 billion issue by Wells Fargo and RBS, a $1.3 billion
transaction by J.P. Morgan and a $1.4 billion ofering by UBS,
Barclays, Archetype Mortgage Capital and KeyBank.
Meanwhile, a $1 billion deal by Morgan Stanley and Bank of
America that was previously expected in June now is on track to
hit the market in July.
Capital One, JP Morgan Win Big Loan
Capital One and J.P. Morgan have agreed to provide about
$135 million of fnancing for Starwood Capitals pending pur-
chase of the leasehold interest in the ofce building at 1372
Broadway in Midtown Manhattan.
Te foating-rate loan is structured as $110 million of senior
debt and a $25 million mezzanine piece.
Te two banks will evenly divide the senior portion, which
has a three-year term and two one-year extension options. Te
junior debt will evidently be placed with one or more high-
yield investors.
Te duo beat out several other banks for the assignment,
including New York Community Bank, which was also a fnalist.
Starwood, a fund shop in Greenwich, Conn., is buying the
leasehold interest from a Lloyd Goldman partnership for about
$185 million. New York Life has agreed to purchase the ground
beneath the 572,000-square-foot building for an unspecifed
price. Starwood will sign a 99-year ground lease.
Te sellers partners include David Werner, another New
York investor. Te group acquired the building in 2008 from a
partnership between Wachovia and New York-based SL Green
for $294 million. Wachovia had bought its majority stake the
previous year in a deal that valued the building substantially
higher, at $335 million.
Te Goldman-Werner team presumably took the unusual
step of selling the ownership of the building and land sepa-
rately because that produced the highest price.
Te 21-story property is between West 37th and West 38th
Streets, fve blocks south of Times Square. It was fully reno-
vated in 1999 and is nearly fully leased.
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JP Morgan to Back Ex-Lembi Rentals
J.P. Morgan has agreed to write $105 million of long-term
loans for an investment group that is seeking to seize a portfo-
lio of San Francisco apartment properties owned by the Lembi
family, one of that citys biggest landlords.
Te borrower, a joint venture between local operator Veritas
Investments and an unidentifed institutional investor, would
use the proceeds to recapitalize the 437-unit portfolio. Te
Veritas team holds mezzanine debt on the properties and has
moved to foreclose. Last year, Veritas acquired a separate port-
folio that had been surrendered by the Lembis.
J.P. Morgan would write individual mortgages on the 14
properties via its commercial term lending program. Its
unclear if the bank plans to sell the loans to a federal mortgage
agency.
Te portfolio consists of garden-style complexes and mid-
rise properties. Among them is a 70-unit property at 645
Stockton Street in the Nob Hill district, across from the Ritz-
Carlton hotel, a 33-unit property at 2677 Larkin Street and a
35-unit property at 1340-1390 Taylor Street. Te portfolio was
82% occupied as of September 2011, according to the most-
recent data available in a servicer
report.
Te Lembi family lined up a
$103.3 million interest-only debt
package on the portfolio in 2007
from UBS. Te bank securitized
the senior $73.6 million piece
via a $3.6 billion pooled ofering
(LB-UBS Commercial Mortgage
Trust, 2007-C2). Te remaining
$29.7 million of the fve-year,
fxed-rate debt package was
structured as mezzanine debt.
Te Lembi family failed to pay
of the debt when it matured in
March. Te Veritas partnership,
which is being advised by Eastdil
Secured, will use some of the
proceeds from the J.P. Morgan
loan to retire the securitized
portion.
Last year, Veritas, which is
headed by Yat-Pang Au, acquired
eight San Francisco apartment
properties that the Lembi family
had surrendered in bankruptcy
proceedings. Veritas fnanced the
$55 million acquisition with a
$39 million fxed-rate loan from
Capital Source. Te properties,
with 346 total units, were in the
Nob Hill, Alamo Square, Upper
Market and Civic Center sub-
markets. HFF arranged that fve-
year loan.
May 18, 2012
Commercial Mortgage
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Invesco Seeks Loan for Safeway Deal
Invesco Real Estate is hunting for $100 million of debt to
fnance its acquisition of four shopping centers in California
and Hawaii.
Te investment shop acquired the properties for $198.8 mil-
lion in two stages in recent months from supermarket chain
Safeway, which leased back much of the space.
Invesco prefers a fxed-rate loan with a term of 7-10 years.
Te Dallas investment manager is pitching the lending assign-
ment solely to insurance companies via Eastdil Secured, which
also brokered the portfolio sale.
Te 283,000-square-foot portfolio, which attracted intense
interest from investors, was one of the highest-quality packages
of grocery-anchored shopping centers to hit the block in years.
Te properties, which were built or re-modeled in the past four
years, are 97.8% occupied.
Te anchor Safeway stores, which account for 80% of the
space, are top performers for the chain. Within three miles of
each center, the average population is 151,000 and the average
household income is $103,000.
Te Pleasanton, Calif., grocery chain signed a 20-year lease
on each store. Safeway operates 1,700 stores nationwide with a
combined $41 billion of sales.
Invesco acquired three of the properties in December for
$149.7 million:
Te 79,000-sf Safeway Kapahulu, at 888 Kapahulu Avenue
in Honolulu. Occupancy rate: 100%. Built: 2007.
Te 70,000-sf Safeway Burlingame, at 1450 Howard Avenue
in Burlingame, Calif. Occupancy rate: 92.8%. Built: 2011.
Te 65,000-sf Shamrock Plaza, at 7499 Dublin Boulevard
in Dublin, Calif. Occupancy rate: 100%. Built: 2001. Reno-
vated: 2007.
In March, Invesco closed on the $49.1 million acquisition of
the 70,000-sf Pavilions Marketplace in West Hollywood, Calif.
Tat property, at 8969 Santa Monica Boulevard, was built in
2009. Its occupancy rate is 98.3%. Te anchor is Pavilions, Safe-
ways upscale brand.
Fund Shop Writes Chicago, NY Loans
Prime Finance has originated two foating-rate mortgages
totaling $202 million on commercial properties in Chicago and
Midtown Manhattan.
Te New York fund shop closed both loans within the past
two weeks. Each has a three-year term and two one-year exten-
sion options.
Te larger loan, for $145 million, went to a joint venture
thats working to stabilize a mixed-use development in Chicago
called Roosevelt Collection. Te property has 342 luxury apart-
ments that are nearly fully occupied and 400,000 square feet
of retail space that is mostly vacant, plus a 1,500-space garage.
McCaffery Interests of Chicago and Los Angeles fund shop
Canyon Capital Realty took over the property in March 2011,
afer buying its $285 million debt package from Bank of Amer-
ica for $160 million, or 56 cents on the dollar. Te previous
owner, a partnership between fund shop Angelo, Gordon & Co.
of New York and Centrum Properties of Chicago, then surren-
dered the keys.
Te McCafery-Canyon partnership will use some of the
loan proceeds to reposition and lease up the retail space. Te
debt was arranged by HFF. Markets players previously said the
joint venture planned to pump in roughly $70 million of addi-
tional equity.
In New York, Prime wrote a $57 million mortgage to ref-
nance a 230-room hotel, Club Quarters Rockefeller Center, at
25 West 51st Street. Te borrower is Rockwood Capital, a New
York fund operator. Jones Lang LaSalle Hotels brokered the
fnancing. Te property includes the Terrace Club, a private
restaurant and networking club on the buildings seventh foor,
and ground-foor retail space.
Correction
A May 11 article, Morgan Stanley Syndicating Normandy
Floater, misidentifed the collateral for a $110 million senior
mortgage that Morgan Stanley originated for Normandy Real
Estate Partners. Te loan, which closed this week, is backed by
a 787,000-square-foot portfolio of ofce buildings in Northern
Virginia and Columbia, Md. It wasnt used to refnance a 1.1
million-sf portfolio of ofce and industrial buildings in Mas-
sachusetts and New Jersey that are owned by a Normandy part-
nership. (See article on Page 10.)
May 18, 2012
Commercial Mortgage
ALERT 6
NOTICE OF PUBLIC SALE OF COLLATERAL
Please take notice that 100% of the membership interests
in 2279-2283 Third Avenue Associates LLC, a New York limited
liability company (the "Owner) and all other "Collateral as defned
in that certain First Amended and Restated Ownership Interests
Pledge and Security Agreement (the Security Agreement), dated
April 3, 2009, by and between 2279-2283 Third Avenue Development
LLC (Debtor) and HSBC Capital (USA) Inc. on behalf of HSBC
Real Estate Mezzanine Partners USA, L.P. (Original Lender),
which Security Agreement and obligations secured thereby were
subsequently assigned to LCP-GC LLC (Secured Party) and all
proceeds of any of Collateral (all such assets, the Collateral) will
be offered for sale at a public auction by Secured Party as secured
party and sold to the highest Qualihed Bidder on June 7, 2012 at
10:00 a.m. at the ofces of Secured Party's counseI, Perkins
Coie LLP, 30 RockefeIIer PIaza, 25th FIoor, New York, New York,
10112.
This sale is held to enforce the rights of the Secured Party
under the Security Agreement. The Secured Party reserves the
right to reject all bids, modify the Terms and Conditions (defned
below) and terminate or adjourn the sale to another time, without
further publication.
Interested parties who would like additional information regarding
the Collateral and the terms and conditions of the Sale (the Terms
and Conditions) should visit the website www.perkinscoie.com/
thirdavenuedevelopmentsecuredpartysale (the Website). Secured
Party reserves the right to post additional terms and conditions to the
Website. For further information contact counsel for Secured Party,
Perkins Coie LLP, 30 Rockefeller Plaza, 25th Floor, New York, New
York, 10112, Attn: Gary F. Eisenberg, Esq., at 212-262-6902 or by
email at geisenberg@perkinscoie.com.
Confab Focus: New Rules, Bad Debt
Regulatory issues and strategies for dealing with distressed
debt will take center stage next month when about 1,000 real
estate fnance professionals converge on the nations capital.
About 650 market participants have already signed up for
the CRE Finance Councils midyear conference, to be held June
11-13 at the JW Marriott Hotel in Washington. Tat puts atten-
dance on track to meet or exceed last years tally of 1,010.
Te annual confab has traditionally been held in New York.
Te change in venue refects the major role in fnance that the
federal government has played since the credit crunch. Te
councils other big annual conference, held in January, returned
to its longtime home in Miami Beach this year afer being held
in Washington in 2010 and 2011.
Next months event will enable attendees to interact with
regulators, who have been invited to attend for free, said
Stephen Renna, the trade groups chief executive. Among the
speakers will be bank regulator Thomas Curry, who was sworn
in last month as Comptroller of the Currency.
While the commercial-mortgage industry faces a wave of
legislative and regulatory reforms, the issue
of top concern is risk-retention require-
ments for securitizations mandated by the
Dodd-Frank Act. More than a year ago,
the comptrollers ofce and fve other fed-
eral regulators unveiled a detailed plan
for implementing those requirements, but
received strong pushback from the indus-
try during the public-comment period. Te
agencies have repeatedly indicated theyd
like to fnalize the rules this year and have
them take efect for commercial MBS two
years later. But many mortgage pros are urg-
ing amendments and another round of pub-
lic comment.
Te lending outlooks for both CMBS pro-
grams and portfolio shops is likely to domi-
nate panel discussions and cocktail-party
chatter. Tere also fgures to be a heightened
focus on investments in distressed commer-
cial mortgages, including workout strategies,
said Renna, who noted that recent council-
sponsored events on distressed debt drew
strong turnouts in New York and Santa Mon-
ica, Calif.
Afer the credit crunch took hold four
years ago, scores of high-yield investors
raised capital to scoop up bad loans at steep
discounts. But many banks and other lenders
refused to dump loans at fre-sale prices, in
some cases because they didnt have enough
capital to absorb the losses. Now, a lot of
the banks balance sheets have improved,
Renna said. Teyre seeing what loans have
recovered and what have not. Tat, in turn,
is leading to better workouts and more clarity in strategy, he
added. Tats what everybody has been waiting for, and they
want to talk about it.
Meanwhile, the council has revised its conference agenda
this year as part of its ongoing efort to broaden its appeal to
all types of real estate fnance pros, not just those involved with
securitization. Instead of holding a single series of panel dis-
cussions, sometimes there will be two running concurrently,
with no more than one focusing on CMBS-related issues.
One session will focus on the global impact of the European
debt crisis, as well as its efect on the U.S. commercial real estate
market. Another will feature a panel of senior managers from
the CMBS groups at all six rating agencies that grade deals in
the sector. Teyve been of the stage for a while, Renna said,
referring to previous conferences. Its time for stress-testing
the rating agencies.
Te conference admission fees match those for the January
gathering in Miami: $1,350 for council members and $1,950
for non-members until June 1. Afer that, the fee to register
at the door will be $1,450 for members and $2,150 for non-
members.
May 18, 2012
Commercial Mortgage
ALERT 7
CRE Finance Council Names Offcers
Te CRE Finance Council has lined up its ofcers for the next year.
Te trade groups board of governors has chosen Keith Gollenberg of
Oaktree Capital as its next president-elect. In June 2013, he will succeed
Citigroups Paul Vanderslice, who begins a one-year term as president next
month.
Te board has appointed three other industry veterans to one-year terms
as ofcers on its executive committee, and re-appointed two others. Tey
and Gollenberg will take their posts during the organizations annual mid-
year conference, June 11-13 at the JW Marriott Hotel in Washington.
Gollenberg is a managing director on Oaktrees commercial real estate invest-
ment team in New York. He will join Vanderslice, Citis co-head of commercial
MBS in the U.S., and outgoing president Jack Cohen, chief executive of Cohen
Financial, as leaders of the trade groups 11-member executive committee.
Te new vice president will be Tim Gallagher, a managing director at
Morgan Stanley who oversees trading of commercial real estate debt. Hell
replace Warren Friend, a managing director at BlackRocks risk advisory arm,
BlackRock Solutions.
Te other incoming executive ofcers are secretary Kathleen Olin, a vice
president at CWCapital in Washington, and policy-committee chairman John
DAmico, the former general counsel of servicer Centerline Capital.
Te returning ofcers are treasurer Dan Bober, an executive vice president in
the commercial-mortgage servicing area at Wells Fargo, and membership chair-
man Brian Olasov, a managing director at law frm McKenna Long in Atlanta.
Gollenberg, Gallagher and Olin will join the executive committee when
they take ofce next month. DAmico has served the last year as an at-large
member. Vanderslice will soon appoint three at-large members to be ratifed
by the board of governors.
Te executive committee advises the councils governing board, which
consists of about 60 members and meets four times a year. Te councils
full-time chief executive, Stephen Renna, works closely with the committee.
Guggenheim Adds Four Executives
Guggenheim Partners recruited four stafers this month for
its real estate fnance team, which is led by Rob Brennan.
Ted King will start next week in the Atlanta ofce as a
managing director. He will oversee servicing and asset
management for Guggenheim Commercial Real Estate Finance
and for Pillar Multifamily, the Fannie Mae lending shop that
Guggenheim controls. King was previously a director at
ING Investment Management. At Guggenheim, he reports to
Michelle Paretti, chief operating ofcer of the real estate fnance
group.
Meanwhile, two originators have joined the group in New
York. John Barker started this week and Jonathan Greenhouse
came aboard last week as managing directors, responsible for
originating and sourcing commercial real estate loans for Gug-
genheims portfolio, for its clients and for securitization. Tey
report to origination co-heads Rob Russell and Kieran Quinn.
Barker was previously a director at Arbor Commercial Mort-
gage, and Greenhouse was an executive director at CIBC World
Markets.
Shawn Conover joined two weeks ago as a vice president for
loan underwriting. He was previously a vice president at Fund
Core Finance.
Eightfold Snags Another B-Piece
Eightfold Real Estate Capital has circled its second B-piece.
Te Miami frm, launched this year by a handful of former
LNR Property executives, has agreed to buy the subordinate
classes of a $1.5 billion commercial MBS deal that Deutsche
Bank, Ladder Capital and Guggenheim Partners are expected to
launch in June.
Eightfold previously circled the junior classes of a $932.8
million ofering by Deutsche and Cantor Fitzgerald. Tat trans-
action was on track to price this week.
Eightfold, backed by Boston hedge fund operator Abrams
Capital, also invests in B-notes and mezzanine debt, and pro-
vides rescue capital to distressed borrowers.
Vegas ... From Page 1
Sephora, Wolfgang Pucks Postrio Bar & Grill and Madame Tus-
sauds Wax Museum. Te mall had $50 million of net operating
income last year, up from $46.6 million in 2010.
Te Grand Canal Shoppes currently has a $368.1 million
mortgage that Goldman Sachs originated in 2004 and secu-
ritized via two pooled transactions (GS Mortgage Securities
Corp. II, 2004-GG2, and Greenwich Capital Commercial Fund-
ing Corp., 2005-GG3). Te 4.78% loan, which had an original
balance of $427 million, was scheduled to mature in 2009, but
the term was extended to 2014 as part of General Growths 2009
bankruptcy.
Te 270,000-sf Shoppes at the Palazzo, which is next to the
Palazzo Las Vegas casino, is 97.9% occupied. It is more akin to
a traditional department store-anchored retail center. Barneys
New York has an 85,000-sf store that isnt part of the collateral.
Te Palazzo mall contains a number of ultra-high-end retail-
ers, including Chloe, Christian Louboutin, Diane von Fursten-
burg, Fendi and Michael Kors.
Shoppes at the Palazzo carries $241.3 million of debt that
matures in 2017. A bank syndicate consisting of Bank of Amer-
ica, Citigroup, Deutsche Bank, Goldman and Wachovia provided
that foating-rate loan, pegged to Libor plus 300 bp, in 2007.
Market players said a couple of factors make the package
more suitable for a CMBS lender than for an insurer. For one
thing, the Grand Canal Shoppes doesnt ft the mold of a retail
property typically pursued by life companies: a large regional
center with well-defned anchor stores. Whats more, risk-
averse insurers remain wary of Nevadas economy, which was
battered by the fnancial crisis. Vegas, as far as its strength as
a market, is still kind of questionable, said one executive with
an insurance company.
As of yearend, General Growth was carrying Grand Canal
at a $765.7 million valuation, and the Palazzo mall at $289.8
million.
Just two weeks ago, Goldman securitized a $1.4 billion
fxed-rate mortgage on another General Growth property, the
Ala Moana mall in Honolulu.
Tishman ... From Page 1
until 2017). Leases on 50% of the space roll over by 2016.
Tat was pitched as a plus for potential bidders because rising
demand for ofce space in the city should provide the opportu-
nity to raise rents as leases expire.
AEW bought the 33-story building in 2007 from Arizona
developer William S. Levine on behalf of a client that was
believed to be a UBS afliate. It acquired the building at the top
of the market, paying around $300 million.
Te Financial District property, previously known as the
Hartford Building, was the tallest structure in California when
Hartford Insurance developed it in 1964 as its West Coast head-
quarters.
May 18, 2012
Commercial Mortgage
ALERT 8
Top Loan Contributors to CMBS Deals
Top CMBS Underwriters
Mortgage-Conduit Operators
Top Law Firms in CMBS
Top Mortgage Servicers
And many more industry rankings
View them all for FREE in The Marketplace section
of www.CMAlert.com.
Identify the Leaders
In Your Business
Capstone, KABR Scoop Up Sour Debt
Two New Jersey frms that make opportunistic investments
in commercial real estate closed this month on their ffh joint
purchase of distressed debt.
Capstone Realty and KABR Real Estate Investment paid spe-
cial servicer LNR Partners just under 40 cents on the dollar for
the $19.1 million defaulted mortgage on a Long Island ofce
property. Te frms have now co-purchased about $85 million of
distressed debt over the last two years, targeting deals that allow
them to take control of suburban New York ofce buildings.
Te Long Island property consists of two ofce buildings at
330-350 Motor Parkway in Hauppauge, N.Y., that total 131,000
square feet, plus a pad site thats leased to a Wendys restaurant.
Te buildings are 65% occupied. Eurohypo originated the 10-year
loan to CLK Properties of Woodbury, N.Y., in 2006 and securi-
tized it in a $4.9 billion pooled ofering (J.P. Morgan Chase Com-
mercial Mortgage Securities Trust, 2006-LDP9). Payments were
long past due, and LNR had begun foreclosure proceedings. It
sold the loan via its Auction.com afliate.
Also within the past couple of weeks, the Capstone-KABR
team accepted the deed in lieu of foreclosure on a 98,000-sf
ofce building in Valhalla, N.Y. Tey paid GE Capital roughly
$7 million about six weeks ago for a $13.6 million distressed
loan on the Westchester County property. GE had originated
the loan in 2008, with an initial balance of $16.5 million, for
Abbey Road Advisors of Westport, Conn., and Guardian Life to
acquire the property. Te three-story building, at 465 Colum-
bus Avenue, is 66% occupied. Te New York City Department
of Environmental Protection, which owns the nearby Kensico
Reservoir, leases about half the space until 2024.
Te 50-50 joint venture between Capstone, of Englewood,
N.J., and KABR, of Ridgefeld Park, N.J., targets both debt
and equity investments. It seeks out distressed debt with an
eye toward persuading the borrower to hand over the deed
which sometimes happens quickly, as in the Valhalla case. If a
borrower resists, the team will seek to seize its property. Afer
taking over, the frms typically make substantial improvements
before considering a sale.
Capstone was founded in 1997 by co-managing partner
Mitchell Adelstein, who previously spent 10 years as a man-
aging director of Ernst & Young. Te company is backed by
wealthy individuals and institutional investors. Te other prin-
cipals are co-managing partner Robert Friedberg and partner
Brad Gillman. Since late 2008, the frm has bought $100 million
of defaulted commercial mortgages.
KABR, which was formed in 2008, is led by stock-market
veteran Kenneth Pasternak, Laurence Rappaport and Adam
Altman. Tose three partners contributed about half of the
$90 million of equity thats split evenly between the frms two
funds, which target opportunistic and value-added investments
in underperforming and distressed ofce, retail and multi-
family properties in the New York metropolitan area and South
Florida. With leverage, KABR now has about $200 million of
real estate assets under management.
May 18, 2012
Commercial Mortgage
ALERT 9
NOTICE OF PUBLIC SALE OF COLLATERAL
Please take notice that all of the equity interests
owned by Michael F. Waldman (Pledgor) in:
1. St. Georges Crescent LLC, a New York limited
liability company;
2. Paris LIC Realty LLC, a New York limited liability
company;
3. 69 E. 130th L.L.C., a New York limited liability
company;
4. 345 Greenwich Street, LLC, a New York limited
liability company;
5. 2002 Fifth Avenue LLC, a New York limited
liability company;
6. Idaho Associates LLC, a New York limited liability
company;
7. 54 Barrow Realty, LLC, a New York limited liability
company;
8. Mawash Realty Corp., a New York limited liability
company (Pledgors ownership of this Collateral
is disputed by Walter Sakow in pending litigation);
and all other "Collateral as defned in those certain
Ownership Interests Pledge and Security Agreements
(the Security Agreements), each dated April 3, 2009,
each by and between Pledgor and HSBC Capital (USA)
Inc. on behalf of HSBC Real Estate Mezzanine Partners
USA, L.P. (Original Lender),which Security Agreements
and obligations secured thereby were subsequently
assigned to LCP-GC LLC (Secured Party) and all
proceeds of any of Collateral (all such assets, the
Collateral) will be offered for sale at a public auction by
Secured Party as secured party and sold to the highest
Qualihed Bidder on June 7, 2012 at 10:00 a.m. at the
ofces of Secured Party's counseI, Perkins Coie LLP,
30 RockefeIIer PIaza, 25th FIoor, New York, New York,
10112. The CoIIateraI with respect to each of the
above entities does not constitute aII of the equity
interests in certain entities; for further information,
pIease consuIt the Website (dened beIow).
This sale is held to enforce the rights of the Secured
Party under the Security Agreements. The Secured Party
reserves the right to reject all bids, modify the Terms and
Conditions (defned below) and terminate or adjourn the
sale to another time, without further publication.
Interested parties who would like additional
information regarding the Collateral and the terms and
conditions of the Sale (the Terms and Conditions)
should visit the website www.perkinscoie.com/
waldmanthirdavenuedevelopmentsecuredpartysale
(the Website). Secured Party reserves the right to
post additional terms and conditions to the Website.
For further information contact counsel for Secured
Party, Perkins Coie LLP, 30 Rockefeller Plaza, 25th
Floor, New York, New York, 10112, Attn: Gary F.
Eisenberg, Esq., at 212-262-6902 or by email at
geisenberg@perkinscoie.com.
Huntington Shops Fla. Apartment Debt
Huntington National Bank is trying to sell its majority stake
in a defaulted $41.5 million construction loan on a luxury
apartment complex in Tampa.
Te Cleveland bank holds $27.7 million of the syndicated
debt, which fnanced development of the 250-unit Casa Bella
on Westshore, a planned condominium complex that was
switched to rentals. Te nonperforming loan matured in
December and a forbearance agreement expired April 1.
Huntington is marketing its share of the loan via DebtX.
First-round bids are due May 24. Te loans terms stipulate that
only commercial banks with at least $500 million of assets are
eligible to take over Huntingtons position.
Fifth Third Bank, also of Cleveland, holds the other $13.8
million slice of the debt. Fifh Tird originated the interest-
only loan in 2006, retaining a third of it and splitting the rest
between Huntington and Sky Bank of North Olmsted, Ohio.
Huntington doubled its share when it took over Sky in 2007.
Te property is 96% occupied and was appraised at $47.5
million in February. It consists of three Mediterranean-style
buildings at 6601 South Westshore Boulevard, about eight
miles southwest of downtown Tampa.
Plans to sell the units as condos were abandoned when the
market collapsed, and Casa Bella opened in 2008 as a rental
apartment complex. Te switch contributed to a legal dispute
between the borrowers and Fifh Tird that was settled under
undisclosed terms three years ago.
CBRE Inks Colo., Texas Freddie Loans
CBRE Capital Markets has originated about $65 million of
Freddie Mac loans to fnance the acquisitions of two apartment
complexes, in Colorado and Texas.
Te 10-year, foating-rate loans were closed and funded
about two weeks ago.
Te larger is a $40.5 million mortgage on the 356-unit Lodge
at Castle Pines in Castle Pines, Colo. Advenir, an Aventura, Fla.,
investment shop, bought the complex for $50.9 million, giv-
ing the mortgage a loan-to-value ratio of about 79%. Te note,
priced at 197 bp over Treasurys, is interest-only for the frst two
years, then amortizes on a 30-year schedule. Lodge at Castle
Pines was built in 2002 at 520 Dale Court, near Interstate 25
about 20 miles south of Denver. Te 28-acre complex has a
24-hour ftness center, a swimming pool and spa, a clubhouse
and a business center.
Te second loan, for $24.2 million, is backed by the 246-
unit Legacy Point in Arlington, Texas. Momentum Real Estate
Partners of Miami bought the apartment property from Connor
Group of Centerville, Ohio. Te terms of the sale were unavail-
able. Te mortgage carries a rate of 201 bp over Treasurys and
is interest-only for four years before amortizing on a 30-year
schedule. Legacy Point is at 1901 Northeast Green Oaks Bou-
levard, about midway between Dallas and Forth Worth. It was
built in 1995. Amenities include a pool, ftness center and club-
house.
Blackstone Funds Mezz for Normandy
Blackstone has originated a $30 million foating-rate mez-
zanine loan for Normandy Real Estate on a Mid-Atlantic ofce
portfolio.
Te debt is subordinate to a $110 million foating-rate loan
that Morgan Stanley closed this week. Te bank plans to syndi-
cate the entire senior loan.
Normandy, of Morristown, N.J., acquired the 787,000-square-
foot portfolio in late 2006 from the U.S. Army/Air Force Mutual
Aid Association for $157 million. Te portfolio, which is 93%
occupied, encompasses nine buildings in Northern Virginia
and one in Columbia, Md. Te largest property is the 214,000-
sf Stoneleigh 1&2 complex in Chantilly, Va.
Normandy, which was advised by Cassidy Turley, used the
proceeds from the Morgan Stanley and Blackstone loans to help
retire a $144.6 million foating-rate loan that Morgan Stanley
arranged in 2007. Morgan Stanley securitized the senior $85
million portion via a $1.4 billion pooled deal (Morgan Stan-
ley Capital I Inc., 2007-XLF). Te remaining $59.6 million was
structured as mezzanine debt. Blackstone held a portion of that
mezzanine debt when it funded the new loan.
Beech Street Lines Up Fannie Loans
Beech Street Capital has agreed to originate $68 million of
Fannie Mae loans over the next several months to refnance
four apartment complexes in the Philadelphia area.
Te properties, two in Pennsylvania and two in Delaware,
are owned by Galman Group of Philadelphia, which will use the
fxed-rate mortgages to retire existing debt on the 1,106-unit
portfolio. Te four current loans can be prepaid without pen-
alty at various dates over the next several months. Te Fannie
mortgages will be funded as the existing notes reach their pre-
payment dates.
Te agreement with Beech Street allows Galman to lock in
interest rates now while avoiding prepayment penalties.
Te properties are:
Te 634-unit Castlebrook Apartments, on 38 acres at 550
South Dupont Parkway in New Castle, Del.
Te 378-unit Buckingham Place complex, at 25 Windsor
Circle in Newark, Del.
Te 101-unit North Lane Apartments, at 102-110 West
North Lane in Conshohocken, Pa.
Te 93-unit Sedgwick Station, at 303 East Mount Pleasant
Avenue in the Mount Airy section of Philadelphia.
May 18, 2012
Commercial Mortgage
ALERT 10
Unless your company holds a multi-user license, it is a violation of
U.S. copyright law to photocopy or reproduce any part of this
publication, or forward it electronically, without first obtaining
permission from Commercial Mortgage Alert. For details about
licenses, contact JoAnn Tassie at 201-234-3980 or
jtassie@hspnews.com.
Jitters ... From Page 1
million class of benchmark paper was being marketed yester-
day at 130 bp.
Meanwhile, J.P. Morgan is expected today to price a $270 mil-
lion securitization of a 10-year loan on 1.2 million square feet of
the 1.6 million-sf Walden Galleria mall in suburban Bufalo. Te
single-asset deals $217.5 million of 9.5-year bonds, rated triple-
A by S&P, Morningstar and Kroll, were being marketed with an
anticipated spread of 140-145 bp. Te price talk on the rest of
the bonds, which have 9.9-year terms, was 190-bp area on the
double-As and 220-bp area on the notes rated A/A/A+.
Te fxed-rate ofering is backed by the senior portion of a
$350 million loan that J.P. Morgan arranged for Pyramid Cos.
of Syracuse, N.Y. Te loan-to-value ratio is 45% on the senior
mortgage and 58% on the overall debt, including $80 million of
mezzanine debt placed with Principal Real Estate and Canada
Pension Plan (see article on Page 3).
Renewed buy-side concerns about the escalating debt crisis
in Europe are mostly to blame for the recent spread-widening
on the conduit issues, which are the CMBS markets main type
of transaction. It didnt help that yields on 10-year benchmark
swaps have dropped 25 bp since the previous transaction, a
$1.4 billion ofering by UBS, Barclays and Archetype.
Investors are pushing back on the absolute yield because
swaps have rallied so much, one CMBS trader said. Te other
thing is, the world is really shaky out there.
Te recent spread-widening may cut into lender profts as
CMBS issuers including some of those in the market this
week prepare to foat an additional $5 billion of multi-bor-
rower issues by the end of June. Many of the commercial mort-
gages slated for deals in the near-term pipeline were written
early this year, when new-issue spreads were still tightening.
Spreads at issuance for benchmark super-seniors contracted
from 130-150 bp over swaps in December to 120 bp in late Jan-
uary, when Goldman, Citi and Archetype priced the frst CMBS
ofering of the year (GS Mortgage Securities Trust, 2012-GC6).
By early March, those spreads had tightened to 105 bp, their
lowest levels in over a year. But they started rising again last
month amid renewed fnancial-market turmoil.
Meanwhile, the Federal Reserve Bank of New York is prepar-
ing to sell another large batch of commercial real estate CDO
paper in the secondary market. BlackRock is running the auc-
tion Tuesday for Maiden Lane 3, one of two vehicles created
by the Fed to support the 2008 government bailout of AIG. Te
ofering consists of six senior classes of bonds, with outstand-
ing balances totaling $688.4 million, from a $2 billion issue
that Boston money manager Putnam Advisory foated via two
installments 10 years ago (Putnam Structured Product CDO
Ltd., 2002-1). CMBS makes up more than 60% of the collateral.
Te rest is a mix of residential mortgage bonds, asset-backed
securities and other CDOs. Te CDO paper being ofered for
sale, now rated Ba1 by Moodys, could fetch bids of 85-89
cents on the dollar.
May 18, 2012
Commercial Mortgage
ALERT 11
In the know?
Commercial Mortgage Alert, the weekly
newsletter that guarantees your edge in
real estate finance and securitization.
Start your free trial at CMAlert.com or call 201-659-1700.
May 18, 2012
Commercial Mortgage
ALERT 12
REIT Credit Ratings for Senior Unsecured Debt
Offce Moodys S&P Fitch
Liberty Property Baa1 BBB BBB+
Boston Properties Baa2 A- BBB
PS Business Parks Baa2 BBB+
Digital Realty Baa2 BBB BBB
Mack-Cali Realty Baa2 BBB BBB
Piedmont Offce Realty Baa2 BBB
Vornado Realty Baa2 BBB BBB
Alexandria Real Estate Baa2 BBB-
BioMed Realty Baa3 BBB-
Brookfeld Offce Properties Baa2 BBB-
CommonWealth REIT Baa2 BBB-
Duke Realty Baa2 BBB- BBB-
Highwoods Properties Baa3 BBB- BBB-
Kilroy Realty Baa3 BBB-
Wells REIT Baa3 BBB-
Brandywine Realty Baa3 BBB- BB+
Government Properties Income Baa3 BBB-
American Realty Capital Ba2 B+
SL Green Ba1 BBB- BB+
DuPont Fabros Technology Ba1 BB
Retail
Simon Property A3 A- A-
Federal Realty Investment Baa1 BBB+ A-
Kimco Realty Baa1 BBB+ BBB+
Realty Income Baa1 BBB BBB+
National Retail Properties Baa2 BBB BBB
Regency Centers Baa2 BBB BBB
Tanger Factory Outlet Centers Baa2 BBB
Weingarten Realty Baa2 BBB
Equity One Baa3 BBB-
First Capital Realty Baa3
Entertainment Properties Baa3 BB+ BBB-
DDR Baa3 BB+ BB+
General Growth Properties BB+
Glimcher Realty Ba3 B-
Brixmor Caa1 B BB-
Multi-Family
AvalonBay Communities Baa1 BBB+
Equity Residential Properties Baa1 BBB+ BBB+
Camden Property Baa1 BBB BBB
BRE Properties Baa2 BBB BBB
Essex Property Baa2 BBB BBB
UDR Baa2 BBB
Home Properties BBB
Mid-America Apartment Communities BBB
American Campus Communities Baa3 BBB-
Post Properties Baa3 BBB-
Colonial Properties Ba1 BBB- BB+
Apartment Investment & Management Ba1 BB+
Associated Estates Realty Ba1 BB- BB+
Healthcare Moodys S&P Fitch
HCP Baa2 BBB BBB+
Ventas Baa2 BBB BBB+
Health Care REIT Baa2 BBB- BBB
Healthcare Realty Baa3 BBB- BBB-
Healthcare Trust of America Baa3 BBB-
Senior Housing Properties Baa3 BBB-
Medical Properties Ba1 BB
Omega Healthcare Investors Ba2 BBB-
Sabra Health B1 BB-
Aviv REIT B1 B+
Extendicare Real Estate Investment B1
Hotel
Hospitality Properties Baa2 BBB-
Host Hotels & Resorts Ba1 BB
FelCor Lodging B3
Industrial
Eastgroup Properties BBB
ProLogis Baa2 BBB- BBB-
First Industrial Realty Ba3 BB- BB
Self Storage
Public Storage A3 A A
CubeSmart Baa3 BBB-
Sovran Self Storage BBB- BBB-
Diversifed
Washington Real Estate Investment Baa1 BBB+
Prime Property Fund Baa2 A-
LNR Property Ba2 BB-
Forest City B3 B-
Other
American Tower Baa3 BB+ BBB-
Corrections Corp. of America Ba1 BB BB+
Capital Automotive Ba3 B+
CNL Lifestyle Ba3 B+
GEO Group B1 B+
iStar Financial Caa1 B+ B-
Spirit Finance Caa1 CCC+
Notes: In some cases, REITs issue securities through operating
partnerships. Some of the above ratings are prospective, so securities
may not have been issued.
Dear Subscriber:
A number of Commercial Mortgage Alert readers, who are concerned
about violating copyright law, have been asking about the terms of our
Multi-User Licenses.
Heres how they work: Licenses cater to companies that require wide
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201-659-1700
FAX: 201-659-4141
May 18, 2012
Commercial Mortgage
ALERT 14
Large Loans Recently Transferred to Special Servicing
Current Sent to
Balance Loan Maturity Special
($Mil.) Type Date Date Servicer Status Securitization
Franklin Mills, Philadelphia (Retail) $290.0 Fixed 5/4/07 6/1/17 4/16/12 Current Various
Marley Station, Glen Burnie, Md. (Retail) 114.4 Fixed 6/9/05 7/1/12 4/20/12 Current BACM 05-3
Regency Square Mall, Jacksonville 86.2 Fixed 6/13/03 7/15/15 4/27/12 Current Various
Boulder Green offce & industrial portfolio 62.0 Fixed 4/4/07 5/1/12 5/2/12 Matured, nonperf. CMLT 08-LS1
Thanksgiving Tower, Dallas (Offce) 58.5 Floating 2/20/07 6/15/12 4/18/12 Matured, perf. BSCMS 07-BBA8
Southside Works, Pittsburgh (Mixed-use) 49.6 Fixed 1/4/07 2/1/17 4/13/12 30-59 days late JPMCC 07-CIBC18
Crowne Plaza Metro, Chicago (Hotel) 48.4 Fixed 5/17/07 6/1/12 5/1/12 Current JPMCC 07-CIBC19
6303 Barfeld Road, Atlanta (Offce) 41.1 Fixed 4/13/05 5/1/13 4/6/12 Current JPMCC 050CIBC12
Corporate Center, Ft. Lauderdale, Fla. (Offce) 39.5 Fixed 3/10/06 4/6/16 4/16/12 90+ days late GCCFC 06-GG7
Almaden Financial Plaza, San Jose (Offce) 37.0 Floating 4/27/07 6/15/12 5/9/12 Matured, perf. LBFRC 07-LLF C5
IPC New York offce portfolio 34.0 Fixed 5/31/05 6/1/15 4/4/12 30-59 days late BACM 05-3
Park Hyatt Beaver Creek, Avon, Colo. (Hotel) 31.6 Floating 5/24/07 6/15/12 4/12/12 Current LBFRC 07-LLF C5
TownePlace Suites Colorado portfolio (Hotel) 30.5 Floating 5/7/07 5/7/12 5/8/12 Matured, nonperf. BALL 07-BMB1
1020 Holcombe Boulevard, Houston (Offce) 28.9 Fixed 11/1/02 11/1/12 4/30/12 Current BACM 03-1
Flushing Landmark, Flushing, N.Y. (Offce) 28.9 Fixed 7/20/06 6/1/16 5/2/12 60-89 days late BACM 06-4
Tamarac Plaza, Denver (Offce) 27.4 Fixed 7/27/04 8/10/12 5/2/12 Current GSMS 04-GG2
Research Park Plaza, Austin, Texas (Offce) 23.6 Floating 6/1/07 6/15/12 4/12/12 Current LBFRC 07-LLF C5
Parkview Village, Long Beach, Calif. (Mixed-use) 23.4 Fixed 5/15/07 6/8/17 4/18/12 Current MLCFC 07-7
Landmark Offce Center, Indianapolis (Offce) 23.2 Fixed 10/2/07 11/1/17 4/27/12 Current JPMCC 07-C1
Tempe Commerce, Tempe, Ariz. (Offce) 22.8 Fixed 4/20/07 5/6/14 5/4/12 Current GSMS 07-GG10
Source: Trepp
xxx
Commercial Mortgage
ALERT 1
MARKET MONITOR
CMBS SPREADS
10YR, AAA SPREAD OVER SWAPS CMBS SPREADS OVER SWAPS
WORLDWIDE CMBS
LOAN SPREADS CMBS TOTAL RETURNS
ASKING SPREADS OVER TREASURYS ASKING OFFICE SPREADS CMBS INDEX
REIT BOND ISSUANCE
UNSECURED NOTES, MTNs, ($Bil.) MONTHLY ISSUANCE ($Bil.) SPREADS
Data points for all charts can be found in The Marketplace section of CMAlert.com
0
100
200
300
400
5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12
Source: Trepp
US MONTHLY ISSUANCE ($Bil.)
0
1
2
3
4
5
6
7
M A M J J A S O N D J F M A M
0
1,000
2,000
3,000
4,000
5,000
6,000
AAA AA A BBB BBB-
Current
6 months ago

YTD YTD
Category 2012 2011 2011
US Total 10.8 9.6 32.7
Non-US Total 1.9 1.3 3.3
TOTAL 12.7 10.9 36.0


Spread (bp)

Fixed Rate Avg. Week 52-wk
(Conduit) Life 5/16 Earlier Avg.
AAA
5.0
10.0
S+165
S+232
S+148
S+210
+197
+239
AA 10.0 S+1,996 S+1,975 +2,105
A 10.0 S+2,619 S+2,589 +2,667
BBB 10.0 T+4,278 T+4,241 +4,211

Dollar Price


Week 52-wk
Markit CMBX 05-1 5/16 Earlier Avg.
AAA 91.1 92.5 91.4
AA 42.2 45.0 47.2
A 28.2 30.9 35.1
BBB 18.1 18.2 19.4
BB 5.0 5.0 5.0
Sources: Trepp, Markit

Month
5/11 Earlier
Office 220 206
Retail 213 195
Multi-family 203 184
Industrial 210 189
Source: Trepp
0
50
100
150
200
250
300
O N D J F M A M
10-year loans with 50-59% LTV

Total Return (%)

Avg. Month Year Since
As of 5/16 Life to Date to Date 1/1/97
Inv.-grade 3.8 -0.4 3.7 176.5
AAA 3.5 -0.2 2.7 169.6
AA 4.0 -0.5 4.3 68.6
A 4.4 -0.8 5.1 52.0
BBB 4.5 -0.9 6.8 48.9
Source: Barclays
0
3
6
9
12
15
18
J F M A M J J A S O N D
0
1
2
3
4
M A M J J A S O N D J F M A M

Rating Amount Spread CDS
5/11 Maturity (M/S) ($Mil.) (bp) (bp)
Kimco 10/19 Baa1/BBB+ 300 T+195 141
Simon Property 3/22 A3/A- 600 T+149 94
Equity Residential 12/21 Baa1/BBB+ 1,000 T+165 125
Prologis 3/20 Baa2/BBB- 540 T+230 167
AvalonBay 1/21 Baa1/BBB+ 250 T+135 92
Duke Realty 3/20 Baa2/BBB- 250 T+210 165
Boston Properties 5/21 Baa2/A- 850 T+155 122
Health Care Property 2/21 Baa2/BBB 1,200 T+200 149
Regency Centers 4/21 Baa2/BBB 250 T+215
Liquid REIT Average Baa1/BBB+ 582 T+184 132
Source: Wells Fargo
2011
2012
May 18, 2012
Commercial Mortgage
ALERT 15
TO SUBSCRIBE
Signature:
COMMERCIAL MORTGAGE ALERT www.CMAlert.com
THE GRAPEVINE
... From Page 1
May 18, 2012
Commercial Mortgage
ALERT 16
commercial mortgage securitization
for the Wilmington, Del., online bank.
Hallock was a senior originator at
Wachovia until 2007 and has since
had stints at Centerline Capital and
Carl Marks Advisory. He reports to Ron
Wechsler, head of the securitization
program that Bancorp Bank rolled
out in March. Alex Leybov also joined
the New York unit last week as a vice
president, working on originations,
underwriting and securitization.
Leybov spent the past six years at RAIT
Financial, a Philadelphia REIT, where
Wechsler formerly co-headed the CMBS
group. Bancorp Bank is still on the
prowl for a head underwriter and at
least one more originator.
Commercial real estate attorney Brian
Smetana lef the law frm of Winston &
Strawn two weeks ago to join New York-
based Rosenberg & Estis, where he is of
counsel. He specializes in helping major
lenders arrange senior mortgages,
including loans to be securitized, on
commercial and residential properties.
Smetana also has worked with develop-
ers on purchases, sales and fnancings
of New York City properties. He had
been an associate at Winston, also in
New York, since coming aboard from
Herzfeld & Rubin in 2006.
Moodys has hired lawyer Simon Burce
as an assistant vice president in New
York. He started April 23, working
for senior vice president Dan Rubock,
an attorney in the CMBS group who
focuses on deal structures and legal
issues pertaining to ratings in that
sector. Burce spent the last four years
at Alston & Bird, also in New York, as
an associate in the law frms real estate
fnance and investment group.
CMBS trader George Geotes resigned
this week as a vice president of Nomura
to join Credit Suisse. He will start next
month as a director in the Swiss banks
New York ofce, where he will continue
to focus on trading and distribution of
agency bonds. He will report to manag-
ing director Christopher Callahan, who
previously worked at Nomura and hired
Geotes there in 2004. Geotes replaces
John McGrath, who lef Credit Suisse in
early March to spearhead agency-CMBS
trading at Goldman Sachs. McGrath
started his new job on May 7.
Anne Space recently joined the asset-
management group of UBS. She was
formerly an assistant vice president of
real estate investments at Hartford Invest-
ment, where she had worked since 2006.
Invesco Real Estate is looking for a
senior investment analyst to work with
its opportunistic and structured invest-
ments team, which is based in Dallas.
Responsibilities include underwriting
and structuring of new investments, as
well as portfolio management. Candi-
dates should have 1-3 years of experi-
ence. Contact Bert Crouch at
bert.crouch@invesco.com.
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