Oversubscribed DDR CMBS Deal Prompts Bank of America To Prepare $460M Fortress Deal

The commercial mortgage backed securities issued earlier this week on the back of DDR retail assets has caught the attention of others who were closely monitoring that issue. Some reports indicated that the DDR deal was up to 10x oversubscribed. So, not only is a follow on issue for DDR said to be in the [...]

Non-Judicial Foreclosure Not Good Enough For Bank of America

Came across an article on Globe St. about Bank of America filing a complaint against Maguire Properties for a debt owed on the 16-story, 308,000 SF office property on Michelson Drive in Irvine.
It isn’t news that the building is in trouble, or that Maguire defaulted – after all Maguire Properties has made it clear that [...]

4280 Hacienda in Pleasanton In Default

A notice of default was filed on the 141,000 SF Britannia II building in Pleasanton. The building is 141,000 SF, and has a $41M first deed of trust on it with Bank of America. The property sits on about 8.3 acres. The notice of default was filed on October 27, 2009. Asking rate is $1.75 [...]

RREEF, RREEF, and RREEF

The Registry has three recent articles out, all of them hitting on RREEF. The first article discusses the SF Employee Pension, and the hit they’ve taken on their real estate investments – to the tune of about $650M.
The most significant unrealized net-asset value losses occurred in three portfolios managed by three well-known pension fund money [...]

Bank of America Moving to Cut Branch Network

Bank of America has slowly been letting out details about it’s intention to cut costs and reduce redundancy by closing branches. The closings could amount up to 10% of branches, of which it has some 6100.
It’s unclear which branches would be cut at this junction, but Bank of America owns a large number of its [...]

Trouble in North San Jose For Tishman Speyer

Tishman Speyer has defaulted on the loan it used to finance the purchase a 40 acre site from BEA Systems in 2007. Tishman paid about $60 psf ($108M) for the site in March of 2007, which BEA Systems then parlayed into the purchase of the office tower at 488 Almaden from Sobrato.
Tishman had intended on [...]

Outfoxing The Fox

There’s a great story in the WSJ about a clever CDS trade that resulted in JP Morgan, Bank of America, and RBS losing their shirts. This story is interesting on multiple levels, one of which is it highlighting how the loose regulatory system has caused the introduction of exponential amounts of risk into the market. [...]

Lobbying Congress For Help

Absolutely Classic:
U.S. Rep. Zoe Lofgren, D-San Jose, sent letters to Kenneth Lewis, president of the Bank of America, and John Stumpf, president of Wells Fargo, dated May 7, asking them to explain why they refused to give Pau and partner RREEF a $391 million construction loan.
“Although I understand and respect your position as private institutions, [...]

Banks Bracing For CRE Defaults

An article in Bloomberg this morning provides some additional detail on bank exposure to commercial real estate. Most of the banks seem ready to take on the losses, but they don’t seem too worried, which is quite reminiscent of the early days of the crisis in the residential sector. According to the article:

The country’s 10 [...]

CMBS Ratings Being Reviewed – It’s a Slippery Slope

Bloomberg is reporting that Moody’s is reviewing its ratings of roughly $300B worth of CMBS debt amidst a drop in values. According to the article,

The review encompasses 52 percent of outstanding U.S. commercial mortgage-backed debt ranked by Moody’s
The ratings of so-called senior and mezzanine AAA bonds, the top two classes of CMBS accounting for about [...]