NEW YORK, NY – Trepp, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its June 2016 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate went noticeably higher in June, as the rate was pushed up by loans that reached their maturity date but were not paid off. The delinquency rate for US commercial real estate loans in CMBS is now 4.60%. The rate has increased 25 basis points from May, but is 85 basis points lower than the year-ago level.

In June, CMBS loans that were previously delinquent but paid off with a loss or at par totaled nearly $900 million. Over $500 million in loans were cured last month, and over $2 billion in loans became newly delinquent. But, over $13 billion in loans were paid off in June, which gave the remaining delinquent loans an increased weight.

“For most of 2016, the expectation and the reality has been that most maturing legacy loans would ‘muddle through’” said Manus Clancy, Senior Managing Director at Trepp. “In June, we saw the first evidence of loans failing to obtain refinancing weigh on the delinquency rate. We expect that trend to continue throughout the rest of 2016.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased along with the overall delinquency rate. The rate of seriously delinquent loans inched up 24 basis points for the month, now 4.48%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.83%.

By property type, delinquency rates for all but one of the five major sectors increased in June. The multifamily delinquency rate fell one basis point to 2.35%, so apartment loans remain the best performing major property type. The retail sector underwent the largest increase out of all major property types, as that delinquency rate went up 36 basis points to 5.72%.

Powered by WPeMatico

PHOENIX, AZ – TruAmerica Multifamily has made its largest investment in Arizona with the acquisition of Scottsdale Springs, a 644-unit institutional quality multifamily community in Downtown Scottsdale, AZ.  TruAmerica bought the property from NY-based Abacus Capital Group in an off-market transaction valued at $80.9 million.

Located at 7791 East Osborn Road, Scottsdale Springs is the third acquisition in Arizona in the past nine months for TruAmerica, whose portfolio in the Grand Canyon State now totals 1,567 multifamily units in Phoenix and Chandler.  The Los Angeles-based real estate firm has invested approximately $225 million in Arizona since it entered the market in 2014.  Last month, the firm bought Villa Blanco, a 379-unit community in Tempe for $56.7 million. 

“Unlike many of the other major Western markets, Phoenix is still in the prime of its post-recession economic growth,” said TruAmerica Senior Managing Director of Acquisitions and Dispositions Greg Campbell.  “Phoenix is forecasted to lead the nation in job growth over the coming years and is further aided by the growing demand by Millennials to target ‘Sun Belt’ markets.  Downtown Scottsdale is Phoenix’ strongest submarket and is emerging as one of the most dynamic technology employment markets in the Western United States.  Consequently, we continue to seek out sound investment opportunities here.”

Built in 1980, Scottsdale Springs features a mix of one-, two-, and three bedroom floor plans ranging in size from 680 to 1,440 square feet in one of the few low-density garden style multifamily environments in Scottsdale.  Community amenities include three resort-style pools, dog park, clubhouse, outdoor kitchens and barbecue areas.  TruAmerica will invest an additional $10 million on a comprehensive renovation program that will transform the property to make a luxury living environment that will still be affordable for working class families and individuals.   Facilitated by TruAmerica’s in-house construction management team, improvements will include interior upgrades to all residential units, the construction of a highly amenitized clubhouse with state-of-the-art fitness center, media and business center as well as a new rooftop lounge overlooking a redesigned resort-style pool. 

“When completed, residents will benefit from an amenity package unparalleled in the submarket at this price point and, more importantly, post-renovation rents will be well below that of the newest Class A product in Downtown Scottsdale,” added TruAmerica Chief Operations Officer Lynn Owen.  

Tyler Anderson and Sean Cunningham with CBRE’s Phoenix office negotiated the transaction on behalf of the seller.  

“Scottsdale Springs features some of the lowest rents in Downtown Scottsdale and presents a truly unique opportunity to dramatically increase net operating income through interior and common area improvements,” said Cunningham.  “Additionally, Downtown Scottsdale is substantially built out with minimal sites available for future multifamily development.”

Powered by WPeMatico

BOCA RATON, FL – TGM Associates announced the acquisition of TGM Oceana, a two building mid-rise apartment community with 160 units and 10 deep-water boat slips, located in Boca Raton, FL.

The four-acre community spans the entire width of Boca Raton’s barrier island boasting 100 feet of beach frontage and 10 boat slips on the Intracoastal Waterway.  The property offers generously sized units with an average size of 1,090 square feet.  All units feature granite counters, ceramic tile throughout all living spaces, patio/balcony, washer and dryer, walk-in closets, and pristine ocean or intracoastal water views from select units.  The community provides residents with an unparalleled amenity package that includes private ocean beach access, swimming pool, intracoastal patio with boat dockage and BBQ area, fitness center, on-site kayaks and paddle boards, and covered parking.  The 10 boat slips are available for transient and seasonal rental to both residents and non-residents. 

TGM Oceana’s location in the southeastern part of Palm Beach County provides convenient access to job centers in both Palm Beach and Broward counties.  Boca Raton boasts over 17.2 million square feet of office space.  The city possesses one of the largest concentrations of employment in Florida.  Boca Raton offers residents beaches, golf courses, museums, universities, upscale shopping, and a variety of restaurants and nightlife.      

“We are very excited to bring TGM Oceana into our multifamily portfolio. TGM Oceana will complement our existing TGM Communities in Florida well.  The property’s location proximate to a diverse array of employment, high quality retail, vibrant night life, and world class recreational amenities makes TGM Oceana one of the most desirable residential locations in South Florida” said Zach Goldman, Managing Principal and Director of Operations for TGM Associates, a SEC-registered real estate investment advisory firm based in New York City.  TGM Oceana is managed by TGM Associates’ management brand, TGM Communities.  TGM also owns and manages on the west coast of Florida; TGM Bermuda Island in Naples, TGM Malibu Lakes in Naples, and TGM Palm Aire in Sarasota, FL.  In late 2015, TGM sold Vintage at Abacoa and Floresta both in Jupiter, FL.

TGM Oceana, formerly known as Villa Oceana, was owned and managed by Chicago, IL based Laramar.  The broker on the transaction was Hampton Beebe, Executive Managing Director at ARA Newmark.     

Powered by WPeMatico