CMBS

The loan used as collateral is part of $410 million of financing the sponsor obtained from Societe Generale to refinance the redevelopment of a 10-story mixed-use building on Eleventh Avenue in Manhattan.

Office buildings account for roughly 40% of the collateral, and much of it is in suburbia, where defaults and losses can be higher, according to S&P Global Ratings.

A $1.1 billion mortgage from four banks on eight buildings in Cambridge, Mass., is being bundled into collateral for CAMB Commercial Mortgage Trust 2019-LIFE.

The only change to the deal is a slightly smaller prefunding amount; one loan that had been expected to be acquired after settlement has already been closed.

It may not signal a recession, but structured finance pros are still preparing for a more risk-off environment.

Loans in commercial mortgage-backed securities originated after 2009 by nonbank lenders have a significantly higher default rate than those originated by banks, a Fitch Ratings report said.

The asset manager obtained a leasehold on floors 28-50 of 620 Eighth Avenue through its purchase of Forest City; the property is now encumbered by $750 million of loans from four banks.

Lagging construction, rising interest rates and the broader economy don't really bode well for buyers of commercial real estate, but most CRE lenders still expect originations to increase in 2019, according to the Mortgage Bankers Association.

Most of the properties were previously securitized in various conduit transactions in 2014 and 2015; they are now being bundled into a single transaction that returns $107.7 million of equity to the sponsor.

AFAH Funding is not your typical CRE CLO: It is backed by entirely by long-dated mezzanine interests in multifamily properties that are eligible for low-income housing tax credits.