Wells Fargo relies on a portion of the loan on the Manhattan office building, along with another high-quality loan, to offset the overall leverage in the transaction.
The office market in Arlington, Virginia has taken a big hit from cutbacks at the Department of Defense, but Goldman Sachs is making a sizable bet on a comeback.
The REIT obtained a $2.3 billion loan on the 50-story office and retail property from four banks; a $1.3 billion portion serves as collateral for BXP Trust 2017-GM.
Freddie Mac has priced its first credit-risk transfer securities backed in part by tax-exempt loans used to finance affordable multifamily rental properties.
The $500 million commercial mortgage that serves as collateral was underwritten by Deutsche Bank and Citigroup; it allowed the building's owner, Alexander's, to cash out $187 million of equity.
This type of lending is in high demand, but most of it is being done on balance sheets by banks and insurers; transactions like this are still relatively rare.
Insurance companies surveyed by CREFC and Trepp continued to boost their allocations to commercial real estate in 2016, albeit at a slower rate than in 201.
Late payments on securitized commercial mortgages fell in May, bucking the trend of the past year. But all of the improvement came from office buildings.
A real estate investment fund controlled by Blackstone Group is tapping the commercial mortgage bond market to refinance a portfolio of 18 life science, laboratory and medical buildings.
