Commercial Mortgage Alert

JANUARY 29, 2016 CMBS Issuance Could Be Choppy This Year With regulatory changes looming and spreads blowing out, conduit shops expect 17 SECURITIZATION PROGRAMS an uneven pace of commercial MBS issuance this year. The sharp spike in spreads this month has caused a pullback in originations. 38 SCORECARD FOR CMBS SPREADS Lenders say that will lead to a slowdown in issuance when loan warehouses become 2 Calpers Taps Deutsche for $1 Billion depleted, probably around late March. Another lull is likely later in the year — perhaps starting in October or Novem- 2 Debt Sought on SF Apartment Portfolio ber — as issuers grapple with the December implementation of risk-retention regulations. Those rules have injected so much uncertainty that market pros widely expect 2 Latitude Seeks $500 Million for Fund lenders to slow originations. The reason: to avoid being stuck with warehoused loans 4 CMBS Prices Rise, Reversing Course if issuance is disrupted as the implications of risk retention are sorted out. By the same token, that anticipated late-year lull could in turn prompt a bor- 6 Banks Await Winner of Vegas Rentals rower stampede over the summer, with property owners rushing to close mortgages before lenders become more cautious. “People will want to hurry up and get in Mesa West, Allianz Write DC Loans 8 See ISSUANCE on Page 16 10 Group Advocates for Women in CMBS 12 Witkoff Eyes Refi of NY Office Condo As Ban Ends, S&P Moving to Revive Business S&P 12 Goldman, UBS Share Retail Loan wants to jump back into the conduit market with both feet. As soon as its one-year ban from the sector ended last week, S&P executives 34 Floater Sought to Refi Pa. Office Parks began reaching out to commercial MBS dealers and investors in an effort to rebuild that part of its business. 36 Wells Reaches Servicing Milestone “We are having conversations with market participants to let them know that we 36 Square Mile Lends on Illinois Rentals are back in the market and confident that we have the resources needed to provide ratings and quality research” on conduit deals, executive managing director James 42 INITIAL PRICINGS Wiemken, global head of structured finance ratings, said in an interview Wednesday. S&P faces a big challenge. The agency’s conduit market share had plummeted even before the SEC enacted the ban last January, leading it to lay off 16 of the THE GRAPEVINE 48 members of its CMBS group in mid-2014. That followed a series of missteps that drew the ire of issuers and investors alike. So S&P will have to win back not Eli Hattem has joined CIBC in New York only dealers, which select the agencies that rate individual deals, but also bond as a managing director overseeing See BAN on Page 40 origination of commercial MBS loans. Hattem spent the past seven years at New Deutsche to Lead Loan for NY Condo Project York advisory shop Park Bridge Financial, where he was a founding partner. Before Extell Development is close to tying up an $888 million financing package for the that, he was chief operating officer of construction of a residential skyscraper in Lower Manhattan. Merrill Lynch’s conduit-lending program. Deutsche Bank has agreed to lead the floating-rate loan and is in the process He started last month at CIBC, reporting of rounding up other lenders to participate. The debt, with a four-year term and to Mike Higgins, head of U.S. real estate a one-year extension option, would back Extell’s planned 815-unit condominium finance. building, at 250 South Street, just north of the Manhattan Bridge. Several people with knowledge of the details said Deutsche is the sole lead at this Paul Jankovsky started at Quadrant Capital point, but one or more other lenders likely will step up to share that duty. A meeting this month as a managing director heading was held last week for banks interested in taking pieces of the debt. small-balance mezzanine lending. Dallas- The ballpark loan-to-cost ratio is 65%, pointing to a construction bill of around based Quadrant rolled out its mezzanine $1.4 billion. Pricing would be 300 bp over one-month Libor on the initial proceeds, program in October with a $20 million stepping up to 375 bp when significant drawdowns begin. origination target. President Michael Young The 80-story tower, dubbed One Manhattan Square, would be one of the largest See GRAPEVINE on Page 51 See DEUTSCHE on Page 14 January 29, 2016 Commercial Mortgage 2 ALERT Calpers Taps Deutsche for $1 Billion selling an equity interest of up to 49% or a preferred equity stake. The Mosser venture bought most of the 12 buildings from Deutsche Bank has agreed to write a $1 billion fixed-rate local owners. It plans to spend some $10 million on upgrades. loan to financeCalpers’ pending acquisition of the office build- The largest of the properties has 58 units. Some 90% of the ing at 787 Seventh Avenue in Midtown Manhattan. apartments are rent-regulated. Calpers has agreed to buy the 1.8 million-square-foot prop- A substantial amount of San Francisco’s multi-family stock erty, formerly called the Equitable Tower, from AXA Equitable is old and subject to rent regulation, yet investors and lenders Financial for $1.9 billion. have been bullish on the city as values continue to rise. Portfo- Deutsche will securitize the 10-year loan via a stand-alone lio offerings have seen heavy bidding in recent months, as they offering, likely next month. The loan-to-value ratio is a skimpy give institutional investors a chance to achieve scale quickly in 53%, which will likely make the deal appealing to bond buyers. the hot market.  Calpers is being advised by CommonWealth Partners of Los Angeles. Eastdil Secured is brokering the property sale for AXA Latitude Seeks $500 Million for Fund and the loan for Calpers. AXA put the building and the adjacent 1285 Avenue of the Latitude Management Real Estate is soliciting $500 million Americas on the block last fall. The two buildings are back-to- of equity for its fourth high-yield debt fund, which would be back, stretching from West 51st to West 52nd Streets, between its largest to date. Sixth and Seventh Avenues, in the Midtown West submarket. Like its predecessor, LM Real Estate Capital Fund 4 would AXA and a partner, J.P. Morgan Asset Management, have sepa- shoot for a 10-11% return by originating bridge loans on com- rately struck a deal to sell 1285 Avenue of the Americas, which mercial properties in primary and secondary markets. The typ- also encompasses 1.8 million sf, to RXR Realty of Uniondale, ical borrower will be a buyer planning to upgrade a property or N.Y., for about $1.7 billion. That property was formerly known improve its management. as the Equitable Building. Marketing is to begin next month, with an initial close The 50-story tower at 787 Seventh Avenue is 98.3% leased, expected at the end of the second quarter. If it reaches its goal, with a weighted average remaining lease term of 8.5 years. The the fund could have some $1.25 billion of lending capacity with tenants include BNP Paribas (463,000 sf until 2022), Willkie leverage. Farr (355,000 sf until 2027), Sidley Austin (352,000 sf until Beverly Hills-based Latitude lends against all property 2022), Stifel Nicolaus (215,000 sf until 2026) and UBS (152,000 types, but doesn’t write land or construction loans. The geo- sf until 2025). UBS, whose headquarters is in 1285 Avenue of graphic focus encompasses the southern half of the country the Americas, has evidently expressed an interest in expanding and the Pacific and Mountain states. The fund would mainly its space. target floating-rate loans of $5 million to $35 million, with Sources familiar with the property said the tenants are con- three-year terms and extension options going out to five years. tractually obliged to pay $1.1 billion of rent through their lease The loan-to-cost ratio would generally be 75-80%. expirations. Latitude’s pitch will target U.S. and European pension funds The property was built in 1985 as the headquarters of Equi- and life insurance companies. Wren Capital of San Francisco is table Life, which was acquired in 1991 by French financial-ser- its placement agent. vices giant AXA. Two high-end restaurants, Le Bernardin and The largest investors in its $405 million Fund 3 are Texas Bar Americain, lease space on the ground floor. The building Employees ($100 million), Pennsylvania School Employees ($75 also includes a swim club, an 80-car garage, a 487-seat audito- million) and Ohio Bureau of Workers Compensation ($50 mil- rium and a television production studio.  lion). That vehicle held its final close in 2013 and is now 95% invested. Debt Sought on SF Apartment Portfolio Rather than the typical three-year investment window, Fund 4 will have a five-year period to give it more flexibility to A partnership is shopping for up to $120 million of floating- recycle capital into fresh investments. rate debt to refinance a dozen San Francisco apartment proper- Latitude is led by president Glenn Sonnenberg and executive ties. vice president Chip Sellers. It was formed in 2009 via a manage- Local developer Mosser Cos. and New York hedge fund shop ment buyout of a Legg Mason fund operation, Legg Mason Real BlueMountain Capital are talking to lenders about a five-year Estate Investors.  loan on the 472-unit portfolio. The buildings are in the city’s Nob Hill and Tenderloin districts. The proposed loan would include senior and mezzanine It is a violation of federal copyright law to reproduce any part portions. The total leverage would be around 70%, based on of this publication or to forward it, or a link to it, without first a valuation of about $170 million. Broker Ackman-Ziff Real obtaining permission to Commercial Mortgage Alert. To request Estate is marketing the assignment to banks, commercial MBS copies for presentations or to expand your distribution rights, shops, debt funds and select insurance companies. contact JoAnn Tassie at 201-234-3980 or [email protected]. The borrower is also looking to recapitalize the portfolio by A PROVEN TRACK RECORD OF UNPARALLELED EXECUTION FOR OUR CLIENTS

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A WHOLLY OWNED SUBSIDIARY OF WELLS FARGO & COMPANY Securities products offered through Wells Fargo Securities, LLC – member FINRA/SIPC January 29, 2016 Commercial Mortgage 4 ALERT CMBS Prices Rise, Reversing Course of a $703.6 million offering (CFCRE 2016-C3) that Cantor and Societe Generale priced last Friday. The benchmark classes of two conduit deals priced in line Dealers initially shopped the CFCRE paper at 150-bp area, with guidance this week, as spreads retraced some lost ground. but buyers demanded more for several reasons. First, the deal Credit Suisse led a $1 billion offering (CSAIL 2016-C5) was marketed at a time of high volatility, as plunging oil prices that priced on Tuesday, and bookrunners Deutsche Bank and and jitters about China’s economic woes combined to drive Cantor Fitzgerald placed a $1 billion transaction (COMM 2016- stock prices down sharply. Also, the transaction was the first CCRE28) the following day. out of the gate this year, and “CMBS buyers were afraid to dive The long-term, super-senior bonds of each went out the door in right away,” noted one trader. Finally, an unidentified hedge at 155 bp over swaps (see Initial Pricings on Pages 42-48). That fund was unwinding a huge long position in CMBX derivatives was 7 bp tighter than the spread on the comparable tranche around the same time, causing spreads on credit-default swaps to widen sharply, in turn push- ing out CMBS spreads, the trader added. This week, volatility eased in CMBX index and global markets, enabling the benchmark CMBS Century Legacy Village Wildwood Apartments and spread to reverse some of the 3ODQR7; Club Creek Apartments recent jump. But it remains well 0XOWLIDPLO\VDOHDQG $XVWLQ7; above the range of 136-140 bp ¿QDQFLQJ 0XOWLIDPLO\VDOHDQGDFTXLVLWLRQ XQLWV ¿QDQFLQJ seen in the three conduit deals 7HUPVFRQ¿GHQWLDO )UHGGLH0DF3URJUDP3OXV® ORDQ that priced in December. Before SLFWXUHG XQLWV this month, the prevailing spread 6DOH7HUPVFRQ¿GHQWLDO hadn’t topped 140 bp since mid- )LQDQFLQJ 2012 (see “CMBS Spread Score- card,” on Page 38). Two other conduit transactions entered the market this week: A $1.2 billion offering backed by loans contributed by Goldman Sachs, Citigroup, CCRE and Starwood Mortgage (CGCMT 2016-GC36); and a $960 mil- Wells Fargo, Rialto 670 Broadway West Hollywood EDITION lion issue by New York, NY Hotel & Residences Capital, NCB, C-III Commercial 2I¿FHDQGUHWDLODFTXLVLWLRQ /RV$QJHOHV&$ Mortgage and Basis Investment DQGUHSRVLWLRQLQJ¿QDQFLQJ +RWHO¿QDQFLQJ (WFCM 2016-C32). VI VI $90,000,000 Official price talk wasn’t available yet on those two deals yes- terday afternoon. But the early “whisper” talk was 153-155 bp for the benchmark class of the WFCM transaction.  We drive value %DFNHGE\WKHPRVWFXUUHQWJOREDOPDUNHWLQWHOOLJHQFHZHRIIHUFOLHQWVUHDOWLPH RSSRUWXQLWLHVDQGIRUZDUGWKLQNLQJSHUVSHFWLYHV2XUSURIHVVLRQDOVRSHUDWHWKURXJK DQLQWHJUDWHGQHWZRUNLQFRXQWULHVDQGXQGHUVWDQGWKHJOREDOQDWXUHRIFDSLWDO Drill down deep into our DQGKRZLW¶VLQYHVWHG1RPDWWHUZKHUH\RXDUHLQWKHLQYHVWPHQWF\FOH\RX market statistics. Go to FDQFRXQWRQXVWROHYHUDJHRXULQGXVWU\NQRZOHGJHWUXVWHGUHODWLRQVKLSVDQG H[WHQVLYHQHWZRUNWRPD[LPL]HUHWXUQVRQ\RXULQYHVWPHQW The Marketplace section of CMAlert.com and click on “CMBS Market Statistics,” which lets you see the data 1HZV!,QVLJKWV!2SSRUWXQLWLHV points behind all the charts that ZZZMOOFRPLQYHVWRU Commercial Mortgage Alert publishes each week. It’s free. OZZZXVMOOFRPFDSLWDOPDUNHWV -RQHV/DQJ/D6DOOH,3,QF$OOULJKWVUHVHUYHG (;3(5,(1&((;(&87,21(;&(//(1&(

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www.ccre.com 212.915.1700 January 29, 2016 Commercial Mortgage 6 ALERT Banks Await Winner of Vegas Rentals Meanwhile, a few lenders have been assembling debt propos- als for the bidders. The buzz is it would likely total around $450 Banks are drawing up financing plans for the expected sale million, putting leverage in the neighborhood of 65%. Bank of of a Las Vegas-area apartment portfolio worth as much as $690 America is among the large banks interested in leading the loan. million. Lenders often draw up prospective quotes for investors that The owner,Camden Property, is reviewing “best and final” are in the final rounds of a bidding process, to give them a offers for the 4,918-unit package and is close to picking a buyer, rough idea of what their cashflows and returns would look like according to sister publication Real Estate Alert. Firms that at a given acquisition price and leverage level. appear to be in the running include Bascom Group of Irvine, Camden, a Houston REIT, is selling 15 Class-B apartment Calif., Michael Dell’s New York-based MSD Capital, Oaktree complexes, dating to the 1980s and 1990s. They were marketed Capital of Los Angeles, TPG of Fort Worth, Texas, and Bahrain- as a value-added play in which a buyer would upgrade the based Investcorp. properties and then boost rents. The going-in debt yield on a $450 million financing package would be around 8.5%. Once the properties are stabilized, that number — net operating income divided by pro- A Different Kind of ceeds — would rise and the leverage would fall. The projection is that the stabilized value of the portfolio Credit Ratings Agency could top $750 million. All of the properties in the portfolio have fewer than 400 units. They include the 376-unit Camden Com- mons, at 6530 East Annie Oakley Drive in Henderson; the 320-unit Camden Fairways, at 1851 North Green Valley Parkway in Henderson; and the 252-unit Camden Pointe, at Proprietary “Bulls and Residential mortgage- Complex asset- Comprehensive 4800 East Tropicana Avenue in Las Bears” analysis for backed securities backed securities coverage on Vegas. commercial mortgage- analysts respond to analyzed by single-family The Las Vegas rental market has backed securities investors’ questions a team of experts rental securities slowly improved since the depths of the recession, when it was one of the hardest-hit in the nation. Fun- damentals have gradually pulled up, with the average occupancy rate Morningstar Credit Ratings offers an alternative to the credit industry’s now at 94.1%, up from 88% a few years ago, according to Marcus & consensus. We provide the information investors need to help them make Millichap.  better-informed investing decisions: our unbiased perspective on commercial mortgage-, residential mortgage-, and asset-backed securities, as well as Correction single-family rental securities. We perform operational risk assessments A Jan. 22 article, “Ladder Lays on the key parties involved in the transaction, and provide performance Off 5, Hires Haber,” included two updates with comprehensive surveillance reviews. incorrect firms in the work history of Don Haber, who has joined Lad- Visit global.morningstar.com/different4 der Capital. Haber never worked at Starwood Financial or Salomon to learn more or call +1 888 736-1924. Brothers. Also, Ladder laid off four employees, not five. The fifth staffer cited in the article,Dustin ©2016 Morningstar. All Rights Reserved. Morningstar’s NRSRO ratings, outlooks, and analysis are provided by Morningstar Credit Ratings, LLC. Pike, Morningstar Credit Ratings, LLC is a wholly owned subsidiary of Morningstar, Inc., and is registered with the U.S. Securities and Exchange resigned before the layoffs Commission as a nationally recognized statistical rating organization (NRSRO). occurred. He has joined Plum Lending of San Francisco as a vice president.  Market knowledge, experience and financial strength. Owners, developers, investment funds and real estate companies rely on the expertise of our Real Estate Finance Group for a full suite of commercial loan and ﬁnancing programs.

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CIBC World Markets Inc. is a legal entity name. CIBC Capital Markets is a trademark brandrand name under whicwhichhd ddifferentiffereent legal entities provide different services under this umbrella brand. Products and/or services offered through CIBC Capital Markets include products and/or services offered by the Canadian Imperial Bank of Commerce, the parent bank of CIBC World Markets Inc. and various other subsidiaries of the Canadian Imperial Bank of Commerce. CIBC World Markets Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. CIBC World Markets Corp. is a member of the Financial Industry Regulatory Authority. CIBC Capital Markets and the CIBC Cube Design are trademarks of CIBC, used under license by CIBC World Markets Inc. CIBC Capital Markets and the CIBC Cube Design are trademarks of CIBC, used under license by CIBC World Markets Inc. January 29, 2016 Commercial Mortgage 8 ALERT Mesa West, Allianz Write DC Loans Fund, on the financing. Meanwhile, Allianz Real Estate of America provided a $135 Hines partnerships have lined up nearly $400 million of million fixed-rate mortgage on the 302,000-sf office building at debt to refinance two prominent office properties in downtown 700 11th Street NW. The 10-year loan closed three weeks ago. Washington, one of them housing the new headquarters of The HFF arranged it for a partnership between Hines and Dallas- Washington Post. based Sarofim Realty, which acted on behalf of an unnamed Mesa West Capital has agreed to originate $260 million of pension fund. floating-rate debt on the 628,000-square-foot One Franklin The loan on One Franklin Square, at 1301 K Street NW, will Square, where the Post just moved in but another big tenant allow the Hines team to retire a $184 million mortgage origi- plans to vacate after next year. The loan has a term of three nated in 2005 by MetLife, recoup its equity investment and take years and two one-year extensions. Eastdil Secured is advising cash out. Hines and the GM pension have owned the building Houston-based Hines and its partner, General Motors Pension since 1996, when they bought it from its developer, Prentiss Copley Investment of Dallas, for $180 million. Although the loan- to-value ratio for the refinancing couldn’t be learned, Mesa West typically provides leverage of 65-70%, indicating the property BBG IS BIG is worth as much as $400 million. The Post recently moved its operations to the building, leasing more than 242,000 sf until (INTO BUNDLED 2031. Another major tenant, law firm Reed Smith, has renewed its 80,000-sf lease until 2026. The SERVICES) occupancy rate is now 96.3%, according to CoStar. But that’s due to drop when law firmDen - tons vacates its 128,000 sf upon BBG continues to grow and expand service offerings for greater lease expiration in December 2017. The property was devel- efﬁciency in this fast paced environment. Our bundled oped in 1989. Valuation, Assessment and Advisory services allow clients to Proceeds of the Allianz loan on streamline the due diligence process to meet market demands. 700 11th Street also went to retire Clients can count on prompt, personal attention through a a 2005 loan from MetLife, which had a remaining balance of $80 single point of contact and appraisal reports tailored to their million. The Hines venture sought speciﬁc requirements. No matter our size, BBG remains quotes on proceeds of up to $186 committed as ever to client satisfaction. million, and terms ranging from 5-20 years, before choosing the $135 million 10-year mortgage. CALL BBG TODAY TO LEARN WHAT WE CAN Fully occupied by law firm Wil- DO FOR YOU. +877-524-1187 liams & Connolly, the property is also known as the Edward Ben- nett Williams Building, after the prominent Washington attorney who helped found the firm. The BBGRES.COM Class-A building, completed in 1992, features a two-story marble lobby. There is also street-level retail space and a five-level, 324- car underground garage. Both properties are in the VALUATION + ADVISORY + ASSESSMENT East End submarket, where office space was 87.1% leased at yearend, according CBRE.  (JX\PZP[PVUÇ9LÄUHUJLÇ*VUZ[Y\J[PVUÇ)YPKNLÇ4LaaHUPULÇ,X\P[` Ç3PULZVM*YLKP[Ç9LJHWP[HSPaH[PVUÇ6ѝJLÇ9L[HPSÇ4\S[PMHTPS` /V[LSÇ0UK\Z[YPHSÇ:LSMZ[VYHNLÇ/LHS[OJHYLÇ*VVWZÇ4P_LK

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CMA - Thank you – 1-00-16.indd 1 1/4/16 6:28 PM January 29, 2016 Commercial Mortgage 10 ALERT Group Advocates for Women in CMBS ning a symposium in New York in April. Details are still being finalized. The CRE Finance Council’s recently formed professional- The network, aimed at supporting women’s careers in com- development group for women is planning a series of “speed mercial real estate financing, had its formal kick-off in Novem- mentoring” events next month. ber and now has 307 members, plus some 200 “supporters” The CREFC Women’s Network will bring experienced indus- whose employers don’t belong to the council. try pros and novices together for brief one-on-one meetings “It’s been a real eye-opener to see how much interest there at sites around the country during a one- or two-week period is,” said co-chair Annelise Osborne, a former Moody’s commer- in February. The sessions will take place in New York, Phila- cial MBS analyst. “One of the things we want to do is make delphia, Washington, Charlotte, Atlanta, Miami, Kansas City, sure there is a pipeline of women available to take on senior Dallas, Los Angeles and San Francisco. The group is also plan- positions in the industry. To have senior women, you have to have junior women, and you have to make sure they stick around.” Other goals include getting more women selected as panel speakers at industry gatherings HUNT MORTGAGE GROUP and offering networking, mentoring and training opportunities COMMERCIAL LENDING for women in CMBS. The network grew out of FINANCING informal after-work gatherings that Osborne organized quarterly OPTIONS FOR ALL in New York for a couple of years. COMMERCIAL Her inspiration was a symposium hosted by UBS in early 2013 PROPERTIES featuring Kim Diamond, senior managing director at Kroll; Anna Glick, senior counsel at Cad- ½ FANNIE MAE walader Wickersham; and Joan Sapinsley, managing director at ½ FREDDIE MAC Resource Real Estate. ½ FHA “The after-work drinks ½ CONDUIT morphed from a handful of people to more than 60 people,” said ½ BALANCE SHEET Osborne, “and it was clear we had - BRIDGE enough interest to turn it into something bigger.” Diamond, Glick and Sapins- ley are now among the Women’s ORIGINATED OVER Network’s 18-member advisory $20 BILLION committee. Christine Patterson, a principal in Blackstone’s debt- IN COMMERCIAL fund unit, co-chairs the group LOANS with Osborne. The network sponsored a panel at CREFC’s industry lead- For information, contact: ers conference this month in COMMERCIAL REAL ESTATE Miami — the first time there was William Hyman dedicated women’s programming 212.317.5750 at the annual confab, according [email protected] to group chief executive Stephen Renna. CREFC members can join the CERTAINTY OF EXECUTION. CLARITY OF THOUGHT. network via its page on the coun- HUNTMORTGAGEGROUP.COM cil’s web site. Others can connect with the group on LinkedIn.  you can grow your business, not your overhead.

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PNC, PNC Bank and Midland Loan Services are registered marks of The PNC Financial Services Group, Inc. (“PNC”). ◊ Lending products and services are provided by PNC Bank, National Association (“PNC Bank”), a wholly owned subsidiary of PNC andMember FDIC. PNC Bank and certain of its afﬁliates, including PNC TC, LLC, do business as PNC Real Estate. PNC Real Estate provides commercial real estate ﬁnancing and related services. Through its Tax Credit Capital segment, PNC Real Estate provides lending services, equity investments and equity investment services relating to low income housing tax credit (“LIHTC”) and preservation investments. PNC TC, LLC, an SEC registered investment advisor wholly-owned by PNC Bank, provides investment advisory services to funds sponsored by PNC Real Estate for LIHTC and preservation investments. Registration with the SEC does not imply a certain level of skill or training. This material does not constitute an offer to sell or a solicitation of an offer to buy any investment product. Lending products and services may require credit approval. ©2016 The PNC Financial Services Group, Inc. All rights reserved. CIB RE REB PDF 1215-067-200503 January 29, 2016 Commercial Mortgage 12 ALERT Witkoff Eyes Refi of NY Office Condo existing debt. Witkoff Group purchased the condo in 2006 for $61.8 mil- Witkoff Group is looking for an $80 million mortgage on a lion. The seller was a German partnership, advised byInvesco Midtown Manhattan office condominium. Realty Advisors, that included Bayerische Beamten Versicher- Investor Steve Witkoff’s New York shop is talking to a range ungen. Eastdil brokered the sale. At that time, the space was of lenders, via Eastdil Secured, about refinancing 116,000 just 75% leased, but it is now fully occupied. square feet of space at 420 Fifth Avenue. The preference is for a The condo is on floors 4-7 of a 30-story building that floating-rate loan with a five-year term. stretches from West 37th to West 38th Streets on the west side One originator familiar with the proposal said the leverage of Fifth Avenue, immediately south of Lord & Taylor’s flagship would be in the 65-70% range, indicating a valuation of up to department store. Notable tenants include investment bank $123 million. Most of the proceeds would be used to extinguish Fox-Pitt Kelton, Major League Soccer and Mitsubishi. The building, encompassing 609,000 sf, was completed in 1991 by Hammerson Property Investment and Development of London. The sagging real estate market at the time dragged down cashflows, prompting Hammer- Debt and Equity for son to convert the property to condominiums and sell the space Commercial Real Estate in pieces. 

Goldman, UBS Share Retail Loan Capital Stack Goldman Sachs UBS Common Equity Preferred Equity and have written a $140 million fixed-rate Common Macerich Deal Size: $1MM - $3MM Deal Size: $500K - $3MM loan for on an open-air Equity shopping center in Boulder, Colo. Preferred The banks evenly split the Up to 90% of Equity Equity Up to 85% of Cost 10-year mortgage, which closed last week. They plan to securitize Bridge Small Balance Bridge it in an upcoming conduit offer- Bridge Loans ing. Deal Size: $10MM - $50MM Deal Size: $2MM - $10MM The lifestyle center, which encompasses 847,000 square feet, Up to 80% of Cost Up to 80% of Cost is called simply “Twenty-Ninth Street.” The anchors are Macy’s, Home Depot and a 16-screen Broker Protection cinema operated by Century We protect brokers 100% of the time.* Theaters. Other major tenants include Apple, H&M, Nordstrom Access the Full Capital Stack: www.realtymogul.com/cap Call us at: (888) 407-8960 Rack and Trader Joe’s. There are several restaurants, including Panera Bread and California ȪǗǕǖǚ")16,$2)Ǿ,ǽ%&0&0+,1+,ƛ"/1,)"+!ǽ+6Ɯ++ &+$4&)) "02 '" 11, /"!&1"3)21&,+Ǿ--/,3) Pizza Kitchen. ,#1%"02 '" 1-/,-"/16 ,))1"/)Ǿ+!,1%"//"01/& 1&,+0ǽ"/*0+! ,+!&1&,+0/"02 '" 11, %+$"ǽ")16 Macerich’s most recent annual ,$2)&0)& "+0"!&+)&#,/+&2+!"/ȱǕǖǞǗǛǛǖǘ+! ȱǛǕǘǚǝǕǗǽ")16,$2) 2//"+1)6!,"0+,1 report, for 2014, said the proper- )"+!,+ ,**"/ &)-/,-"/1&"0&+1%"#,)),4&+$011"0ǿǾǾǾǾǾǔǽ")16,$2),ƛ"/0".2&16 0" 2/&1&"01%/,2$%,/1%-&1)/&31"" 2/&1&"0,/-ǽțȜǾ*"* "/ ȡ ǽ%&0&0+,1+,ƛ"/1,0")) ty’s in-line stores produced aver- ț,/1%"0,)& &11&,+,#+,ƛ"/1, 26Ȝ+60" 2/&16Ǿ4%& %,+)6 + "*!"1%/,2$%,ƛ& &),ƛ"/&+$!, 2*"+10 age sales of $605 per square foot. 1%1 ,+1&+&*-,/1+1&+#,/*1&,+ ,21/&0(0Ǿ#""0+!"5-"+0"0ǽ")16,$2)ǽ ,*&04" 0&1",-"/1"! 6 The occupancy rate was 97.8%. ")16,$2)Ǿ,ǽǾ+! 6 "00&+$1%"0&1"+!+6-$"01%"/",#Ǿ6,2$/""1, " ,2+! 6,2/"/*0,# "/3& "+!/&3 6,)& 6ǽ The center was built in 1963 ȥ+6#""0-&!1, /,("/,+".2&16*201 "-&!1,)& "+0"!/"-/"0"+11&3"4&1% ȡǽ and most-recently renovated 04-09-2015-Disc-Cp+Ep in 2007. Macerich bought it in 2007.  COMMERCIAL REAL ESTATE

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at buyers from China, Malaysia and Singapore. In fact, sources Deutsche ... From Page 1 noted that some of the numbers involved in the project — the residential buildings in Lower Manhattan. Others in its size 80 floors, 815 units, 850-foot height, $888 million loan — seem class include 70 Pine Street, a former office building that is in intended to appeal to buyers from East Asia, and China in par- the process of re-opening as a hotel and 612 luxury apartments; ticular, where the number eight is associated with wealth and 30 Park Place, which will have a hotel and 157 condos when it good fortune. opens this year; and the Frank Gehry-designed Eight Spruce Lenders are likely to view the deal as “comfortably under- Street, completed in 2010 with 898 rental units. written,” one source said. Multiple Asian banks, such as Bank New York-based Extell, headed by Gary Barnett, has decided of China, are expected to be interested in taking down pieces to cast its tower solely as condos. That’s arguably trickier than of the debt. building apartments, as the developer will have a huge number One originator who kicked the tires on Extell’s deal noted of units to be sold individually. that a recent controversy over anonymous condo purchases Over the past year or two, banks have become more skit- could give some lenders pause. The New York Times was among tish about condo-construction loans, in part because of doubts the news outlets that reported last year on the widespread about whether the units can be absorbed amid a development acquisition of units in the U.S. by unidentified foreign buyers as boom. Originators tend to feel apartments are a less-risky bet. a way to stash capital. The city has since implemented regula- But sponsorship and location are factored in, of course — and tions to restrict purchases by shell companies that don’t reveal Extell has a solid track record, while Manhattan is one of the the buyer’s identity. strongest housing markets in the country. Preliminary construction has begun at One Manhattan Barnett is best known for his super-luxury One57 condo Square. As the tallest building in its immediate area, almost tower on Central Park South, a thin structure rising about directly on the East River, it will have sweeping views of the 1,000 feet and housing just 92 condos — a far smaller inven- cityscape and the river. Planned amenities include a movie the- tory to sell. Unit prices started at $3 million, but the penthouse ater, a bowling alley, fitness studios, a dog run, gardens, fire pits sold last year for $100 million. and a tree house. By contrast, units at One Manhattan Square are being The project also includes an affordable-housing component: offered for $1 million to $3 million, appealing to a larger range 205 rental units in a 13-story building behind the condo tower, of customers. Pre-marketing, via JLL, has been aimed largely at 229 Cherry Street. It will be financed separately.

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SECURITIZATION PROGRAMS

Issuance ... From Page 1 Origination Targets for Securitization Programs before risk retention re-prices the whole market,” said one lender. Loans originated for securitization. Origination figures were supplied by the lenders and weren’t independently verified. Commercial Mortgage Alert estimated originations for If those scenarios play out, issuance Credit Suisse, Freedom Commercial Real Estate, J.P. Morgan, Redwood Commercial could go on a roller-coaster ride, compli- Mortgage and Walker & Dunlop. cating the jobs of bond buyers trying to spread out their purchases over the year. Projected 2016 Reported 2015 Actual 2015 Just a few weeks ago, a panel of bond Originations Originations Securitizations pros predicted that CMBS issuance ($Mil.) ($Mil.) ($Mil.) would grow by 9% this year, to $110 bil- Bancorp Bank $1,250 $1,000 $407 lion. But the rough start to 2016 — with Bank of America 9,000 7,600 6,397 stock and oil prices plunging, China’s Barclays 8,000 5,800 5,313 outlook softening and CMBS spreads Basis Investment 1,000 454 396 widening sharply — has left conduit Benefit Street Partners 3,000 900 637 lenders wondering if they should push BNY Mellon 1,300 1,100 660 the reset button on expectations. C-III Commercial Mortgage 1,000 1,000 629 In the wake of that spread volatility, CCRE 7,000 5,500 4,093 some lenders have widened their loan CIBC 2,200 1,450 1,237 spreads or temporarily suspended quotes altogether — a pullback that wasn’t fac- Citigroup 7,000 9,000 6,462 tored into 2016 projections. Credit Suisse 6,000 6,000 5,983 “You had borrowers and brokers call- Deutsche Bank 12,000 12,000 9,621 ing in for loan quotes while spreads were Freedom Commercial Real Estate 150 100 93 blowing out, and everybody was getting Goldman Sachs 14,000 9,000 6,259 sticker shock,” said one lender. “They Guggenheim-Pillar 1,200 575 95 couldn’t believe that spreads could move Hunt Mortgage 750 100 0 out by 30 bp from one week to the next.” J.P. Morgan 12,000 12,000 11,143 Commercial Mortgage Alert’s annual Jefferies LoanCore 3,000 1,700 1,216 review of securitization programs has KeyBank 1,500 845 856 identified 36 active conduits — flat with a year ago (see list of lenders and origina- KGS-Alpha Real Estate 500 250 53 tion goals on Pages 16-30). But while the Ladder Capital 3,000 3,000 2,585 overall tally was unchanged, there was MC-Five Mile 1,250 1,000 968 some shuffling of individual programs. Morgan Stanley 10,000 8,500 8,056 Three firms joined the list:Freedom Com- Natixis 3,500 2,100 2,549 mercial Real Estate, Hunt Mortgage and NCB 440 397 275 KGS-Alpha Real Estate. And three were Principal Commercial Capital 2,000 935 820 removed: Annaly Commercial Real Estate, RAIT Financial 1,500 1,000 916 GE Capital Real Estate Liberty Island. and ReadyCap Commercial 350 220 219 Annaly is focusing on portfolio loans, GE Redwood Commercial Mortgage 750 750 741 exited the real estate sector, and Perella Weinberg dropped out of Liberty Island, Rialto Capital 3,250 2,600 2,413 leaving partner Prudential Mortgage in Silverpeak Real Estate Finance 2,500 1,400 981 limbo. Societe Generale 2,500 739 534 The review, which doesn’t include Starwood Mortgage 2,250 2,100 2,069 “table-funding” lenders that sell mort- UBS 3,600 3,000 2,752 gages to securitization programs, found Walker & Dunlop 300 300 280 that the firms expect to write $138 bil- Wells Fargo 9,000 7,000 6,115 lion of mortgages in aggregate, up from OTHERS 0 0 780 $111 billion in 2015, according to figures TOTAL 138,040 111,415 94,601 provided by the companies and, in a few See ISSUANCE on Page 32 January 29, 2016 Commercial Mortgage 17 ALERT

SECURITIZATION PROGRAMS

The following is a list of conduit shops that aggregate loans Barclays for securitization. In many cases, some or all of the originators Contact: Larry Kravetz, 212-526-5838 2015 originations: $5.8 billion aren’t listed. 2016 originations (projected): $8 billion 2016 offerings (projected): 18 Bancorp Bank Originators: Contact: Ron Wechsler, 646-495-7470 U.S. large loans: Eric Wu, 212-526-4890 2015 originations: $1 billion U.S. conduit loans: Frank Gilhool, 212-526-6970 2016 originations (projected): $1.25 billion East Coast/Texas: Christopher Burke, 212-526-2359 2016 offerings (projected): 6 East Coast/Texas: Dennis Suh, 212-526-6613 Originators: East Coast: Brett Gaffan, 212-526-4301 Southern California/others: John McGlynn, 239-207-0696 Southeast: Marcus Perry, 212-526-1918 Northern California/Northwest: Gary Wong, 510-529-4045 Midwest: Alison Coen, 212-526-4932 New York: Tim Hallock, 646-495-7472 West Coast: Josh Greene, 310-481-2627 New York/New Jersey/Florida: David Kra, 646-495-7488 West Coast: Eliav Dan, 310-481-2631 New York/Chicago/Ohio: Jon Kohan, 646-495-7479 Basis Investment Texas/Southern/Midwest: John Barker, 646-495-7505 Contacts: Florida/Others: Anne Stewart, 813-784-5714 Tammy Jones, 212-842-5713 Bank of America Kunle Shoyombo, 212-842-5713 2015 originations: $454 million Contact: Kenneth Cohen, 646-855-3608 2016 originations (projected): $1 billion 2015 originations: $7.6 billion 2016 offerings (projected): 5 2016 originations (projected): $9 billion Originators: 2016 offerings (projected): 20 National: Kunle Shoyombo, 212-842-5713 Originators: National: Mark Bhasin, 212-915-0696 National: Jason Ourman, 646-855-3562 National: Brendan O’Brien, 212-915-0698 National: Shaunak Tanna, 212-915-0699 Continued on Page 18

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SECURITIZATION PROGRAMS

C-III Commercial Mortgage Benefit Street Partners Contact: Paul Hughson, 212-705-5046 Contact: Scott Waynebern, 212-588-6740 2015 originations: $1 billion 2015 originations: $900 million 2016 originations (projected): $1 billion 2016 originations (projected): $3 billion 2016 offerings (projected): 6 2016 offerings (projected): 8 Originators: Originators: National: Michael Pierro, 212-705-5096 Michael Comparato, 212-588-9404 National: Rob Bernstein, 212-705-5149 National: Gary Newman, 212-705-5089 Aaron Casden, 212-588-9242 National: Amy Sackin, 212-705-5080 Brian Nowakowski, 212-588-9283 National: Ian Schwartz, 212-705-5070 David Elgart, 212-588-9241 National: Ellison Quijano, 212-705-5079 Peter Touhill, 212-588-6984 CCRE BNY Mellon Contact: Michael May, 212-610-2319 2015 originations: $5.5 billion Contact: Chuck Wolter, 646-795-5410 2016 originations (projected): $7 billion 2015 originations: $1.1 billion 2016 offerings (projected): 20 2016 originations (projected): $1.3 billion Originators: 2016 offerings (projected): 6 East Coast: Bill Weber, 212-829-5268 Originators: West Coast: Jonathan Schurgin, 310-788-5808 Head of originations: Ken Dickey, 646-795-5411 CIBC Jake Stahler, 646-795-5412 Contact: Michael Higgins, 212-667-5601 Chance Johnson, 469-622-0020 2015 originations: $1.45 billion Chris Troutman, 704-972-8085 2016 originations (projected): $2.2 billion Ken Margala, 949-535-4113 2016 offerings (projected): 4-6 Ernie Iriarte, 949-535-4116 Originators: New York: Jim Baranello, 212-667-5603 Newport Beach, Calif.: Barry Schumacher, 212-667-7027 Continued on Page 20

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SECURITIZATION PROGRAMS

Citigroup Deutsche Bank Contacts: Contact: Ed Adler, 212-250-4542 Paul Vanderslice, 212-723-1295 2015 originations: $12 billion Joe Dyckman, 212-816-6457 2016 originations (projected): $12 billion 2015 originations: $9 billion 2016 offerings (projected): 20 2016 originations (projected): $7 billion Originators: 2016 offerings (projected): 25 U.S. large loans: Stephen Choe, 212-250-6911 Originators: U.S. conduit loans: Kevin Pivnick, 212-250-3437 New York: Michael Mestel, 212-816-8777 U.S. special situations: Dino Paparelli, 212-250-5013 New York: Eric Mirvis, 212-816-0808 U.S. loan syndication: Jim Rolison, 212-250-3352 New York: Peter Gruber, 212-816-4624 U.S. loan syndication: Darrell Gustafson, 212-250-3282 New York: Michael Corridan, 212-816-0135 New York: Marc Waldman, 212-250-3315 Charlotte/Southeast: Michael Cohen, 704-552-3712 New York: Joseph Vassallo, 212-250-2982 Los Angeles/West Coast: Ed Balazs, 213-239-2074 Los Angeles: Mark Fluent, 310-788-6174 Los Angeles/West Coast: Smith Daley, 213-239-1912 Atlanta: Bill Lafferty, 404-920-7120 Texas/Southwest: Darrell Graf, 972-202-9990 Dallas: Tom Burns, 214-740-7723 Chicago/Midwest: Chris Pilat, 212-816-7529 Chicago: Brien Wloch, 312-888-3068 Michigan/Midwest: James Goldberg, 212-816-7335 San Francisco: Collin “CJ” Karthauser, 415-617-3211 New York large loans: David Goodman, 212-250-0136 Credit Suisse New York large loans: Tom Traynor, 212-250-5125 Contact: Mark Brown, 212-325-4093 2015 originations: $6 billion (CMA estimate) Freedom Commercial Real Estate 2016 originations: $6 billion (CMA estimate) Contact: Kevin Tatro, 212-897-9849 Originators: 2015 originations: $100 million (CMA estimate) National: Jeremy Stoler, 212-325-6776 2016 originations: $150 million (CMA estimate) National: Stefanos Arethas, 212-325-0736 Continued on Page 22

Empire Mall Patrick Henry Mall CHALLENGING TIMES REQUIRE Retail Retail $190,000,000 $48,100,000* Sioux Falls, SD Newport News, VA PROVEN PERFORMANCE November 2015 June 2015 Hilton Harrisburg The Fairfax Building European Powerhouse Hospitality Ofﬁce with International Reach $31,500,000 $16,500,000 Cross-Asset Expertise Harrisburg, PA Richmond, VA June 2015 May 2015

Hilton Garden Inn Green Bay Landmark Center Hospitality Office $16,700,000 $16,125,000 Global Derivatives Green Bay, WI Indianapolis, IN June 2015 June 2015 House of the Year — Risk Magazine Beltramo Office All Storage Golden Triangle Office Self-Storage $16,000,000 $9,523,897 Societe Generale Corporate & Investment Banking launched a U.S. Commercial Mortgage Menlo Park, CA Fort Worth, TX July 2015 March 2015 Backed Securities business in 2015 which engages in the full range of CMBS activities from

origination to distribution. *Societe Generale co-originated 50% of a $96.2mm loan.

This advertisement contains information on certain services and products offered by Société Générale (“SG”) and one or more of its affiliates. It is for informational purposes only and does not constitute an offer, or the solicitation of an offer, or a recommendation, to buy or sell any securities, futures, derivatives or other financial instruments, services or products, or a commitment to arrange, underwrite or provide financing of any kind. Fitch Ratings’ senior team has an average of 19 years of CMBS experience.

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SECURITIZATION PROGRAMS

Goldman Sachs Guggenheim-Pillar Contacts: Contact: Prashant Raj, 212-381-4115 Ted Borter, 212-902-3857 2015 originations: $575 million Jon Strain, 212-902-3857 2016 originations (projected): $1.2 billion 2015 originations: $9 billion 2016 offerings (projected): 8 2016 originations (projected): $14 billion Originators: 2016 offerings (projected): 25 National: Kieran Quinn, 404-805-3573 Originators: National: Robert Lawrence, 212-518-5381 Dallas: Roddy O’Neal, 972-501-3915 Dallas: Rod Reppe, 972-501-3961 Hunt Mortgage Contact: Dan Wolins, 212-521-6366 Dallas: James Abbee, 972-501-3922 2015 originations: $100 million Dallas: Will Waters, 972-501-3974 2016 originations (projected): $750 million Dallas: Nick Losada, 972-501-3953 2016 offerings (projected): 6 Dallas: Jeff Frank, 972-501-3960 Originators: New York: Ted Borter, 212-902-3857 National: William Hyman, 212-317-5750 New York: Rene Theriault, 212-902-2172 New York: Steven Cox, 212-317-5752 New York: Miriam Wheeler, 212-902-2056 New York: R.J. Guttroff, 212-588-2011 New York: Matt Higgins, 212-357-0806 Dallas: Victor Clark, 972-868-5757 New York: Sidd Shrivastava, 917-343-4684 Cleveland: Daniel Eibler, 216-407-3213 New York: Tiffany Thurber, 212-934-2880 Irvine, Calif.: Peter Clasquin, 949-221-6681 New York: Jeremy Woodward, 212-902-3188 Irvine, Calif.: Paul Angle, 949-221-6685 Chicago: Chris Kosonen, 312-655-4618 Chicago: Greg Cazel, 847-490-5390 Los Angeles: Brad Wilmot, 310-407-5811 Atlanta: John Beam, 404-921-2555 Los Angeles: James Ko, 310-407-5885 Washington: Bryan Cullen, 703-663-5868 San Francisco: Richard Olrich, 415-482-3410 Miami: Marc Suarez, 305-714-3188 Boston: Hayley Suminski, 617-299-8864 Continued on Page 24

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SECURITIZATION PROGRAMS

J.P. Morgan KeyBank Contact: Dennis Schuh, 212-834-9378 Contact: Joe DeRoy, 913-317-4230 2015 originations: $12 billion (CMA estimate) 2015 originations: $845 million 2016 originations: $12 billion (CMA estimate) 2016 originations (projected): $1.5 billion 2016 offerings (projected): 6 Jefferies LoanCore Originators: Contact: Dan Bennett, 203-861-6037 National: Matt Ruark, 913-317-4237 2015 originations: $1.7 billion 2016 originations (projected): $3 billion KGS-Alpha Real Estate 2016 offerings (projected): 10 Contact: Andrew Noonan, 646-658-3932 Originators: 2015 originations: $250 million Greenwich, Conn.: Brett Kaplan, 203-861-6015 2016 originations (projected): $500 million Greenwich, Conn.: Steve Anderson, 203-861-6025 2016 offerings (projected): 4 Greenwich, Conn.: Dana Arrighi, 203-861-6014 Originators: Greenwich, Conn.: Richard Small, 203-861-6005 New York: Greg Porter, 646-560-7034 Greenwich, Conn.: Chad Jones, 203-861-6021 New York: Joe Iorizzo, 646-640-1003 Greenwich, Conn.: Jeff Santoro, 203-861-6016 Chicago: Dave Camins, 646-640-1131 Chicago: Paul Stepan, 312-750-4412 Chicago: Steve Kay, 312-750-4442 Ladder Capital Chicago: Patrick Walker, 312-750-4462 Contact: Michael Mazzei, 212-715-3196 Los Angeles: Chapin Hunt, 310-281-4420 2015 originations: $3 billion Los Angeles: Steve Graines, 310-281-4426 2016 originations (projected): $3 billion Atlanta: Tom Aschmeyer, 404-877-3210 2016 offerings (projected): 10 Atlanta: Bryan Collins, 404-877-3211 Continued on Page 26 Irvine, Calif.: Dave Kennard, 949-681-2840 Irvine, Calif.: David Froschauer, 949-681-2841 San Francisco: Jean Baker, 415-284-8410

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3560004-001_MNY_InvestorAd_CommercialMortgageAlert_7_25x4_5_010716.indd 1 1/8/16 12:49 PM $OL,UTI,ONS $23,500,000 INDUSTRIAL CMBS JOHNSTOWN, PA ■ $3,200,000 FREDDIE SMALL BALANCE LOAN WASHINGTON, DC ■ $7,900,000 RETAIL CMBS MADISON, WI ■ $1,725,000 FREDDIE MAC SMALL BALANCE LOAN CHICAGO, IL ■ $26,000,000 BRIDGE LOAN DUNDALK, MD ■ $24,099,000 FANNIE MAE DUS® ASHEVILLE, NC ■ $2,300,000 MIXED- USE FREDDIE MAC SMALL BALANCE LOAN CHICAGO, IL ■ $6,480,000 FANNIE MAE DUS® DALLAS, TX ■ $18,750,000 CMBS TAMPA, FL ■ $41,200,000 FREDDIE MAC PROGRAM PLUS® NEWARK, NJ ■ $9,200,000 FANNIE MAE DUS® MCKINNEY, TX ■ $6,513,000 FANNIE MAE DUS® VIRGIN- IA BEACH, VA ■ $46,000,000 BRIDGE EAGLEVILLE, PA ■ $25,000,000 CMBS FAYETTEVILLE, NC ■ $10,000,000 FAN- NIE MAE DUS® NORTHRIDGE, CA ■ $3,080,000 FREDDIE MAC SMALL BALANCE BIRMINGHAM, AL ■ $2,019,000 FANNIE MAE COSTA MESA, CA ■ $22,500,000 HUD 207/223(f) MEM- PHIS, TN ■ $4,206,000 FANNIE MAE DUS® ROCK HILL, SC ■ $6,230,000 FREDDIE MAC PROGRAM PLUS® AFFORDABLE SAN DIEGO, CA ■ $17,737,500 CMBS MT. PLEASANT, SC ■

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©2016 Greystone & Co., Inc. All rights reserved. .QCPRTQFWEVUCTGQHHGTGFVJTQWIJ)TG[UVQPG(WPFKPI%QTRQTCVKQP)TG[UVQPG5GTXKEKPI%QTRQTCVKQP+PECPFQT)TG[UVQPGCHƂNKCVGFEQORCPKGU(QTOQTGKPHQTOCVKQPRNGCUG XKUKVQWTYGDUKVGYYYITG[EQEQOQTEQPVCEVKPHQTOCVKQP"ITG[EQEQO AA004 0116

January 29, 2016 Commercial Mortgage 26 ALERT

SECURITIZATION PROGRAMS

MC-Five Mile Contact: Matt Philip, 212-485-2585 2015 originations: $1 billion 2016 originations (projected): $1.25 billion 2016 offerings (projected): 8 Morgan Stanley Delivering Innovative Contact: James Flaum, 212-761-4405 2015 originations: $8.5 billion Commercial Real Estate 2016 originations (projected): $10 billion 2016 offerings (projected): 24 Solutions. Originators: National: Nailah Flake-Brown, 212-761-3455 National: George Kok, 212-761-0327 West Coast: Gary Duff, 310-788-2253 Wells Fargo Portfolio Honeywell Building Various Houston, TX Natixis Contact: Greg Murphy, 212-891-6282 2015 originations: $2.1 billion 2016 originations (projected): $3.5 billion 2016 offerings (projected): 9 Originators: Head of CMBS securitization: Jerry Tang, 212-891-5752 New York: Brian Clark, 212-891-5749 $95,000,000 $21,750,000 New York: Gavin Elwes, 212-891-5718 Office, Conduit Office, Conduit New York: Michael Girimonti, 212-891-5709 JANUARY 2015 MAY 2015 New York: Bruce Habig, 212-891-5728 New York: Michael Magner, 212-891-5723 New York: William Chen, 212-891-5734 The Hub at Columbia Sunroad Corporate Center New York: Marc Zuliani, 212-891-5712 Columbia, SC San Diego, CA New York: Zineb Bouazzaoui, 212-891-5789 New York: Stanislav Pertsev, 212-891-1920 New York: Jared Zimmel, 212-891-5810 Los Angeles: Vishal Vanjani, 310-432-7978 Los Angeles: Jon Scott, 310-432-7979 Los Angeles: Brian Staley, 310-432-7981 NCB $56,000,000 $110,000,000 Contact: Casey Fannon, 703-302-1917 Student Housing, Portfolio Office, Portfolio 2015 originations: $397 million MARCH 2015 MARCH 2015 2016 originations (projected): $440 million 2016 offerings (projected): 5 Originators: New York: Edward Howe, 212-808-0880 Portfolio | Bridge | Conduit | Fannie Mae DUS* New York: Mindy Goldstein, 212-808-0880 Freddie Mac* | FHA/HUD* New York: Harley Seligman, 212-808-0880 *Provided through our affiliate, Pillar Multifamily or Pillar Capital Finance Southeast: Larry Mathe, 703-302-1909 Southeast: Robert Bernstein, 703-302-1923 Mid-Atlantic: Greg Daniszewski, 703-302-1927 Rob Lawrence 212 518 5381 Continued on Page 28 Kieran Quinn 404 926 1020 GuggenheimPartners.com PillarFinance.com $23 BILLION CLOSED IN 2015. NOW THAT’S CERTAINTY.

Additionally we’ve closed four portfolio deals in excess of $1 billion each year, over the last four years. But the big deals don’t deﬁ ne us. Our capital sources, market knowledge and unparalleled experience deliver the same certainty of execution for middle market deals as for billion-dollar deals.

BERKADIA.COM / 800.446.2226

Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Investment sales/real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx. © 2015 Berkadia Commercial Mortgage LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC. January 29, 2016 Commercial Mortgage 28 ALERT

SECURITIZATION PROGRAMS

Principal Commercial Capital ReadyCap Commercial Contact: Margie Custis, 515-247-7987 Contact: Jim Going, 469-706-7064 2015 originations: $935 million 2015 originations: $220 million 2016 originations (projected): $2 billion 2016 originations (projected): $350 million 2016 offerings (projected): 4-6 2016 offerings (projected): 2 Originators: Originators: West: Kevin Catlett, 515-283-9986 National: Craig Barnes, 469-706-7060 Midwest/Texas: Phil Friedrich, 515-362-0495 New York: John Drennan, 917-545-5125 Northeast: Doug McKinstry, 515-283-5360 Southern California: Lisa Cappelletti, 949-491-8081 Southeast: Kerry Studer, 515-235-5369 Austin: Dan Gaylord, 512-942-0019 Los Angeles: Joel Covington, 323-380-6929 RAIT Financial Washington: Oliver Harris, 202-251-9372 Contact: Scott Davidson, 215-243-9035 Charlotte: Kevin Leonard, 704-399-2131 2015 originations: $1 billion Atlanta: Russell Grigg, 404-992-3505 2016 originations (projected): $1.5 billion Chicago: Jeff Joyner, 312-841-3001 2016 offerings (projected): 6 Dallas: Jeff Bottoms, 469-706-7063 Originators: Dallas: Michel Gilbert, 469-706-7072 Philadelphia: Greg Marks, 215-243-9041 Redwood Commercial Mortgage Contact: Aaron Dunne, 415-380-2332 2015 originations: $750 million (CMA estimate) 2016 originations: $750 million (CMA estimate) Continued on Page 30

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Simply Self Storage Portfolios (2) LA Mixed-Use Portfolio Northeast Corporate Center $64,710,000 $31,750,000 $25,000,000 Self-Storage Mixed-Use Office OK / MS / LA / TX / FL Los Angeles MSA, CA Ann Arbor, MI Acquisition Financing Refinancing Refinancing December 2015 December 2015 December 2015

Hampton Inn & Suites Lynnwood East Hills Portfolio Pangea 12 $20,750,000 $9,530,000 $7,500,000 Hospitality Retail Multifamily Lynnwood, WA Various, PA Chicago MSA, IL Refinancing Refinancing Refinancing January 2015 January 2015 January 2015

Southeastern and Central U.S. Northeastern U.S. David Auerbach 305.695.5519 | 78 6 .853.545 0 [email protected] Jim Freel 212.600.2837 | 516.305.2016 [email protected] Steven DeRose 305.695.5845 | 352.514.2128 [email protected] Tim Szalay 212.600.2836 | 917.603.6331 [email protected] Lance Johnson 704.264.3509 | 704.904.1318 [email protected] Sam Rosen 646.884.6425 | 917.968.8456 [email protected] Western U.S. Mike Stone 646.884.6430 | 646.784.0973 [email protected] Craig Picket 212.600.2839 | 917.992.0374 [email protected] Keith Thompson 704.973.9035 | 704.408.2929 [email protected] Gerry Santos 949.885.8262 | 949.244.0503 [email protected]

www.starwoodmortgagecapital.com

© 2016 Starwood Mortgage Capital. Trade/service marks are the property of Starwood Mortgage Capital. All rights reserved. Restrictions apply. Some products are not available in all states. . This is not a commitment to lend. This is an advertisement. January 29, 2016 Commercial Mortgage 30 ALERT

SECURITIZATION PROGRAMS

Rialto Capital UBS Contacts: Contact: Chris LaBianca, 212-713-4706 Brett Ersoff, 212-415-4853 2015 originations: $3 billion John Herman, 212-415-4853 2016 originations (projected): $3.6 billion 2015 originations: $2.6 billion 2016 offerings (projected): 10 2016 originations (projected): $3.25 billion Originators: 2016 offerings (projected): 12 National: Chris LaBianca, 212-713-4706 Silverpeak Real Estate Finance Walker & Dunlop Contact: Doug Tiesi, 646-560-1755 Contact: Robert Restrick, 646-438-7701 2015 originations: $1.4 billion 2015 originations: $300 million (CMA estimate) 2016 originations (projected): $2.5 billion 2016 originations: $300 million (CMA estimate) 2016 offerings (projected): 8 Originators: New York: Geoff Smith, 646-438-7715 Societe Generale Contact: Wayne Potters, 212-278-6107 Wells Fargo 2015 originations: $739 million Contact: Doug Mazer, 212-214-7574 2016 originations (projected): $2.5 billion 2015 originations: $7 billion 2016 offerings (projected): 10 2016 originations (projected): $9 billion Originators: 2016 offerings (projected): 20 Head of originations: Gary Romaniello, 212-278-7968 Originators: REITs: Stew Whitman, 212-278-6224 New York: Joe Tufariello, 212-214-7588 Southeast: Joey Petras, 404-942-3701 New York: Michael Sarkozi, 212-214-7614 Southeast: Marty Black, 404-942-3700 Northeast: Jeff Schor, 212-214-7581 West Coast: Gary Swon, 949-225-4416 Northeast: Terry Livingston, 212-214-7604 West Coast: Peter Lewicki, 310-566-8154 Northeast: Michael Petrizzi, 212-214-7592 Northeast: Rich Kirikian, 212-278-7498 Mid-Atlantic: Jon Albertell, 212-214-7584 Northeast: Chris Kramer, 212-278-6171 Southeast: John Tinkey, 704-715-9959 Balance sheet lending: Powell Robinson, 212-278-7191 Midwest: Ed Gras, 704-374-7086 Midwest: Andrew Laughlin, 704-383-6903 Starwood Mortgage Midwest: A.J. Walker, 312-345-7665 Contact: Larry Brown, 704-362-1979 Texas/Colorado: Duane Hastings, 469-729-7523 2015 originations: $2.1 billion Texas: Edward Brady, 713-576-1025 2016 originations (projected): $2.25 billion Texas: Billy Hurst, 469-729-7525 2016 offerings (projected): 15 West: Todd Barnett, 949-251-4380 Originators: Southwest: Eric Gunderson, 213-253-3065 Northeast: Jim Freel, 212-600-2837 Southwest: Keith Williams, 213-253-3374 Northeast: Tim Szalay, 212-600-2836 Northwest: William Whalen, 415-396-7415 Southeast/Central: David Auerbach, 305-695-5519 Northwest: Eric Smith, 415-801-8553 Southeast/Central: Steve DeRose, 305-695-5845 Northwest: Courtney Boscoe, 415-801-8555 Southeast/Central: Lance Johnson, 704-264-3509 National: Wayne Brandt, 213-253-3727 Southeast/Central: Sam Rosen, 646-884-6425 Large loans: Jon Martin, 704-715-0571 Southeast/Central: Mike Stone, 646-884-6430 Large loans: Rob Rosenberg, 212-214-7600 Southeast/Central: Keith Thompson, 704-973-9035 Large loans: Bob Cade, 212-214-7598 Western: Craig Picket, 212-600-2839 Large loans: Kevin Cowan, 212-214-7589 Western: Gerry Santos, 949-885-8262 Large loans: Rick Oberman, 212-214-7597 A different perspective on commercial real estate ﬁnance

In 2015, investment funds managed by subsidiaries of Apollo Global Management, LLC invested in approximately $3 billion of commercial real estate loans and CMBS. We offer ﬁnancing across a broad spectrum of property types and geographies and at all points within a property’s capital structure.

To learn more, please visit our websites www.agm.com; www.apolloreit.com

Sang Yu Ben Gray Catherine Chen 212-822-0731 212-822-0621 212-515-3207 [email protected] [email protected] [email protected]

9 West 57th Street ONew York, NY 10019 O212-515-3200 Owww.agm.com Owww.apolloreit.com New York O Los Angeles O Houston O Chicago O Bethesda O Toronto O London OFrankfurt Madrid O Luxembourg OMumbai O Delhi O Singapore O Hong Kong O Shanghai January 29, 2016 Commercial Mortgage 32 ALERT

Issuance ... From Page 16 The 5th Annual INVESTORS’ CONFERENCE ON cases, estimates by Commercial Mortgage Alert. Those figures should be read with caution. Firms were asked CLOs & LEVERAGED LOANS to provide projections only for CMBS loans, but some probably May 16-17, 2016 | New York, NY included portfolio or mezzanine loans. Also, some shops no doubt cited upper-end estimates that will be hard to achieve. The Premier CLO Industry Conference! The inflation factor can be seen in last year’s review, when the shops’ $146 billion projection of originations far exceeded the Associate Sponsor* $95 billion they actually ended up securitizing. There is a widespread sentiment that small conduit shops are especially under pressure from competitive forces and the impending regulations. According to one industry veteran, Exhibitor Sponsor* predictions of a shakeout will likely come true this year. “The small lenders are going to be more and more marginal- ized, because they won’t be able to make enough money to jus- tify the risk they are taking on, and you will see some of them fade away,” he said. “That’s just the way it is.”

*For up-to-date sponsor listing, and more information, But even if that happens, it wouldn’t have a broad impact on visit www.imn.org/clony2016 the sector. The 10 firms that supplied the smallest volume of For sponsorship opportunities, contact Chris Keeping at loans to conduit deals last year accounted for just 4% of total [email protected] or 212-901-0533 contributions. By contrast, the market share of the 10 biggest operations was almost 75%. 

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Start your free trial at HFAlert.com or call 201-659-1700 NEW YORK (Headquarters) | 345 Park Avenue, New York, NY • 212.715.3170 FLORIDA | Mizner Park – 433 Plaza Real, Boca Raton, FL • 561.558.7619 LC CALIFORNIA | 10250 Constellation Boulevard, Los Angeles, CA • 310.601.2460 LADDE R CALIFORNIA | One Market, Spear Tower, 36th floor, San Francisco, CA • 415.293.8437 www.LadderCapital.com CAP I T A L STEPPING UP TO MEET YOUR CAPITAL NEEDS

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Multi-Family Complex aLoft Minneapolis Comeau Portland Multifamily Portfolio San Francisco, CA Minneapolis, MN West Palm Beach, FL Portland, ME $450,000,000 $17,750,000 $9,000,000 $9,800,000 January 29, 2016 Commercial Mortgage 34 ALERT Floater Sought to Refi Pa. Office Parks Morgan Stanley in 2006 that is scheduled to mature in March. The borrower would kick in additional equity to deleverage the A Pitcairn Properties partnership is seeking a $155 million properties, according to a market source. loan to refinance two suburban Philadelphia office parks. The remainder of the new loan would be drawn down over The Chesterbrook Corporate Center and Glenhardie Corpo- time for leasing costs. The portfolio is currently 70% leased. Its rate Center, both in Chesterbrook, Pa., total 1.3 million square surrounding King of Prussia/Valley Forge office submarket was feet. Pitcairn and its partner, Savills Investment Management, 79.3% occupied at yearend, according to CBRE. are shopping for a floating-rate mortgage with a five-year term. The existing debt on the two centers includes a $120 mil- Eastdil Secured is marketing the assignment to banks, com- lion interest-only senior mortgage that has a 5.7% coupon. It mercial MBS shops and debt funds. was securitized via a $1.7 billion pooled offering (BSCMS 2006- Some $135 million of the loan would be funded up-front, TOP22). The $55 million junior slice carries a 6.1% coupon. and would go toward retiring a $175 million loan originated by A joint venture between Pitcairn, of Jenkintown, Pa., and SEB Immobilien of Frankfurt acquired the 17-building portfolio in 2006 for $251 million. The seller was a joint venture of Fox Realty, the local firm that developed the properties, and Florida State Board. SEB last year sold its real estate investment arm to London- based Savills. The portfolio had net operating income of $12 million for the first nine months of 2015, in line with the full-year figure of $16 million for 2014, according to servicer reports. The complexes were built in stages from 1979 to 1992. Chester- brook Corporate Center encompasses 13 buildings around the intersection of U.S. Route 202 and Chesterbrook Road. Glenhardie Corporate Center, about six miles away, consists of four buildings along Drummers Lane. The properties total 170 acres and include garage and surface parking. They are about 20 miles northwest of Philadelphia, a few miles from the Pennsylvania Turnpike. 

Researching a Deal? Use Commercial Mortgage Alert’s CMBS Database to zero in on any issue backed by commercial and multi-family properties. This powerful research tool — complete with pricing details on thousands of issues — is FREE at CMAlert.com if you’re a subscriber to Commercial Mortgage Alert. SPEED Ŷ CERTAINTY ŶRELATIONSHIP FOCUSED Senior Mezzanine Loans: 5 - 10 Years, 5% - 7% FixedFixed anandd FFloatingloating Rate, StaStabilizedbilized anandd TransitionaTransitionall ProPropertiesperties OFFICE MULTIFAMILY HOTEL New York, NY San Francisco, CA New York, NY $25,000,000 $12,500,000 $25,000,000 B-Note Mezzanine Loan B-Note 10 Yr Permanent Loan 10 Yr Permanent Loan 10 Yr Permanent Loan

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SQUARE MILE CAPITAL MANAGEMENTThis does not LLC constitute | WWW.SQUAREMILECAPITAL.COM an offer to sell or a solicitation of an offer to buy | 350an interest PARK in any AVENUE, Square Mile NEWproduct. YORK, NY 10022 | 212.605.1000 January 29, 2016 Commercial Mortgage 36 ALERT Wells Reaches Servicing Milestone Wells Fargo has become the first commercial-mortgage servicer to pass the $500 billion threshold. At yearend, Wells had $501 billion of master- and primary- servicing contracts on all types of U.S. commercial mortgages — including portfolio loans, agency debt and commercial MBS collateral, said Alan Kronovet, the head of commercial-mortgage servicing. That was up from $474.4 billion a year earlier. The bank’s main servicing rival,PNC, is also closing in on the mark. PNC and its Midland Loan Services unit had $465.8 billion of contracts at June 30 last year, according to a survey by the Mortgage Bankers Association. A spokeswoman said the portfolio grew by more than 5% in the second half, putting it in the vicinity of $490 billion. Wells, the longtime servicing leader, expects its servicing business to keep growing this year. The bank benefits from having the largest commercial real estate debt portfolio — $127.7 billion of commercial mortgages, multi-family mortgages, and construction and industrial loans, as of the middle of last year. The servicing portfolio’s bulk also provides economies of scale and widespread insight on real estate fundamentals, according to Kronovet. “Our portfolio of servicing contracts covers all property types across the country, so we know what’s going on in all of those markets,” he said. “That information enhances our surveillance capabilities.” CMBS loans account for the bulk of Wells’ servicing contracts — some $350 billion.  GET SET Square Mile Lends on Illinois Rentals OPPORTUNITIES AHEAD Square Mile Capital closed a $50 million loan last week on a recently redeveloped apartment building in suburban Chicago. Asset-Backed Alert, The floating-rate loan has a five-year term, including all the weekly newsletter extension options. The borrower,Stoneleigh Co., used the pro- that gives you the ceeds to retire existing debt on the 214-unit property. The Arlington Heights, Ill., building, called One Arlington, earliest look at is a former Sheraton Hotel. Stoneleigh, of Barrington, Ill., con- money-making plays verted the 13-story structure, which had 432 hotel rooms, into emerging from the luxury apartments. Opened last summer, the property is being changing ABS and leased up, with an occupancy rate now in the mid-80% range. MBS markets. The apartments, measuring an average of 927 square feet, have wood floors and cabinets, granite countertops and stain- less-steel appliances, walk-in closets and washer/dryers. Rents start at $1,200 for studios and run as high as $4,500 for some two-bedroom units. The property, at 3400 Euclid Avenue, includes a 320-space underground garage, a 5,000-sf roof deck with fire pit, a private party room, a fitness studio and a “man cave” with poker, pool Start your free trial and foosball tables, shuffleboard games and a golf simulator. at ABAlert.com, or call One Arlington is part of a planned 32-acre development 201-659-1700. called Arlington Downs that will include more apartments, retail space, restaurants and a water park, Coco Key Water Resort, that’s currently shuttered but due to be renovated.  Client Focused | Solution Oriented | Results Driven

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Spreads to swaps Size Jr. AAA AAA AAA Jr. AAA Deal ($Mil.) Date Ratings Sub. % (5 yr) (10 yr) (10 yr) AA A BBB- MSBAM 2015-C22 $1,107.3 4/10/15 MD/FI/KR 24.50 +55 +93 +118 +150 +205 +355 WFCM 2015-NXS1 955.2 4/20/15 MD/FI/DB 24.25 +53 +85 +110 +135 +190 +320 COMM 2015-CCRE23 1,758.2 5/6/15 MD/DB/KR/MR 22.63 +50 +85 +115 +153 +215 +345 CSAIL 2015-C2 1,380.7 5/6/15 MD/DB/KR/MR 21.62 +52 +86 +120 +155 +210 +330 WFCM 2015-C28 1,164.7 5/13/15 MD/DB/KR 22.38 +52 +87 +120 +165 +210 +355 GSMS 2015-GC30 1,238.3 5/15/15 MD/KR/MR 21.71 +50 +86 +125 +155 +225 +360 JPMBB 2015-C29 984.5 6/4/15 MD/FI/MR 23.50 +50 +87 +117 +137 +200 +360 MSBAM 2015-C23 1,072.7 6/5/15 MD/FI/DB 23.00 +48 +89 +117 +140 +195 +365 COMM 2015-LC21 1,321.9 6/12/15 MD/DB/KR 21.13 +50 +92 +125 +160 +230 +395 WFCM 2015-C29 1,177.0 6/19/15 MD/FI/KR 22.50 +65 +95 +132 +150 +230 +385 CGCMT 2015-GC31 723.3 6/24/15 MD/KR/MR 21.88 +95 +130 +165 +235 MSC 2015-MS1 885.4 6/25/15 MD/DB/KR 24.13 +93 +125 +165 +220 +378 WFCM 2015-NXS2 914.4 6/30/15 MD/DB/KR 24.38 +68 +100 +135 +180 +260 +425 COMM 2015-PC1 1,462.9 7/1/15 MD/DB/MR 24.75 +72 +107 +145 +198 +268 +440 GSMS 2015-GC32 1,003.1 7/16/15 MD/FI/KR 23.00 +68 +100 +125 +170 +230 +375 JPMBB 2015-C30 1,331.5 7/17/15 MD/DB/KR 22.75 +67 +105 +145 +198 +260 +400 COMM 2015-CCRE24 1,388.2 7/24/15 MD/FI/MR 23.88 +65 +102 +135 +175 +260 +385 MSBAM 2015-C24 935.4 7/24/15 MD/KR/MR 24.13 +69 +105 +135 +210 +275 +400 WFCM 2015-C30 740.3 7/27/15 MD/FI/MR 23.00 +68 +102 +142 +175 +250 +385 CSAIL 2015-C3 1,419.8 8/6/15 MD/FI/KR/MR 23.88 +65 +107 +140 +180 +250 +390 CGCMT 2015-P1 1,095.8 8/6/15 MD/FI/KR 23.50 +67 +106 +137 +170 +260 +390 COMM 2015-CCRE25 1,127.4 8/13/15 MD/FI/KR 24.00 +77 +116 +150 +210 +280 +440 JPMBB 2015-C31 1,032.3 8/13/15 MD/DB/KR 24.75 +67 +120 +150 +229 +310 +475 WFCM 2015-SG1 716.3 8/18/15 MD/FI/MR 24.25 +65 +120 +145 +200 +280 +440 BACM 2015-UBS7 757.3 9/14/15 MD/FI/KR/MR 23.38 +117 +145 +195 +275 +440 CGCMT 2015-GC33 958.5 9/14/15 MD/FI/MR 25.00 +75 +124 +157 +210 +290 +460 WFCM 2015-LC22 963.7 9/15/15 MD/FI/MR 22.75 +73 +122 +158 +200 +290 +460 WFCM 2015-NXS3 814.5 9/25/15 MD/DB/KR 23.13 +73 +115 +150 +210 +300 +460 COMM 2015-CCRE26 1,090.9 9/28/15 MD/FI/KR/MR 25.63 +83 +125 +171 +215 +320 +525 MSBAM 2015-C25 1,179.4 10/7/15 MD/FI/KR 26.13 +75 +125 +168 +225 +325 +520 GSMS 2015-GC34 848.4 10/14/15 MD/FI/KR 25.25 +78 +125 +165 +220 +320 +510 JPMBB 2015-C32 1,148.2 10/19/15 MD/FI/DB/KR 25.50 +81 +127 +165 +205 +380 +565 COMM 2015-CCRE27 931.6 10/20/15 MD/FI/DB 24.25 +84 +125 +162 +205 +310 +525 MSBAM 2015-C26 1,048.2 10/28/15 MD/FI/KR 22.63 +85 +120 +155 +175 +255 +500 WFCM 2015-C31 988.5 10/29/15 MD/FI/MR 25.00 +82 +127 +162 +205 +320 +540 COMM 2015-LC23 960.9 11/6/15 MD/FI/KR 23.63 +90 +122 +160 +190 +275 +575 GSMS 2015-GS1 820.6 11/16/15 MD/FI/KR 23.75 +125 +155 +175 +275 +485 JPMBB 2015-C33 761.8 11/17/15 MD/FI/DB 24.63 +82 +130 +155 +180 +280 CSAIL 2015-C4 939.6 11/18/15 MD/FI/KR/MR 24.00 +90 +134 +170 +215 +305 +620 MSBAM 2015-C27 822.3 11/19/15 MD/KR/MR 23.00 +134 +165 +240 +350 +560 WFCM 2015-NXS4 774.5 11/19/15 MD/FI/KR 24.75 +86 +130 +155 +180 +275 +600 CGCMT 2015-GC35 1,105.2 11/24/15 MD/FI/KR 24.13 +83 +138 +163 +190 +285 +525 MSC 2015-UBS8 805.0 12/2/15 MD/FI/KR/MR 24.00 +110 +140 +170 +190 +295 +600 WFCM 2015-P2 1,002.2 12/8/15 MD/FI/KR 25.25 +85 +136 +156 +180 +290 +525 JPMCC 2015-JP1 799.2 12/15/15 MD/FI/DB 26.13 +85 +140 +160 +210 +330 +615 CFCRE 2016-C3 703.6 1/22/16 MD/FI/KR 24.88 +162 +190 +245 +385 +725 CSAIL 2016-C5 963.4 1/26/16 MD/FI/MR 22.75 +85 +155 +180 +225 +375 COMM 2016-CCRE28 1,026.8 1/27/16 MD/FI/DB 26.13 +87 +155 +185 +275 +415 +830 THE FUTURE IS SHAPED BY THOSE WHO BUILD IT

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FOR MORE INFORMATION, CONTACT:

Ben Milde / 646-362-6504 / bmilde@firstkeylending.com Jon Stein / 646-233-0708 / jstein@firstkeylending.com Peter S. Ginsberg / 646-233-0717 / pginsberg@firstkeylending.com

FirstKey Commercial program, products and services are offered by FirstKey Lending, LLC. oanL products are subject to credit application and approval. Other restrictions may apply. Rates, terms and products subject to change without notice. This is not an offer or commitment to lend. 01/2016 © 2016 FirstKey Lending, LLC. All rights reserved. January 29, 2016 Commercial Mortgage 40 ALERT

was last updated in 2012. Wiemken said Wheeler will support Ban ... From Page 1 S&P’s conduit-rating process as a “resource outside the analyti- buyers. cal team.” “We want investors to differentiate between ratings from Dealers contend that if S&P doesn’t formally revise its meth- different agencies and demand S&P ratings on deals,” Wiem- odology, it still has to find a way to make the implementation of ken said. “We’re building our strategy around that.” ratings more consistent. Conduit issuers had virtually stopped The suspension was part of S&P’s settlement of securities- hiring S&P on conduit transactions in 2014, largely because fraud charges levied by the SEC and some state regulators in relatively minor changes in the makeup of collateral pools connection with disclosures about its rating methodology for a would often cause final subordination levels to change signifi- handful of 2011 CMBS deals. cantly from initial indications. The ban didn’t apply to the smaller single-borrower sector, To be sure, conduit issuers in theory would love to see S&P’s where S&P has remained the most-active agency. But it pro- return, if only to use it as a wedge against Moody’s, which has hibited the agency from “engaging in any marketing activity taken a harder stand on credit quality compared to other agen- related” to conduit transactions. That prevented S&P from get- cies. Since many investors require either a Moody’s or S&P rat- ting a running start back into the sector by contacting dealers ing, issuers had no choice but to hire Moody’s during the ban. and investors before the ban expired. Indeed, Moody’s conduit market share last year was 100%. The agency indicated it’s actively hiring analysts at various So conduit dealers said they likely will use S&P ratings on levels to work on conduit offerings. Wiemken declined to spec- some upcoming deals. But, they quickly added, S&P’s rein- ify how many staffers were being added. The current headcount troduction figures to be slow, and Moody’s will continue to be of the CMBS group is slightly more than 30. used in the near term. There has been widespread speculation that S&P would “If we came out now with a deal without Moody’s on it, all have to modify its conduit rating methodology to gain traction of our conversations with investors at the roadshows would be with issuers. But Wiemken said the agency doesn’t see a need about why we didn’t have Moody’s on the deal,” said one CMBS to do so. pro a major bank. “We’re not going to do that. This isn’t about the He also denied persistent market talk that veteran indus- dealers. We’re basically going to make what the market wants to try analyst Darrell Wheeler was hired last year as structured- buy from us. The proof will be in how investors receive S&P.” finance research chief to help rework the methodology, which Some CMBS buyers still nurse a grudge against S&P for post-crash missteps, starting with a sweeping methodology change in mid-2009 that resulted in a huge swath of legacy S I K J F P I W D M K S G P bonds being abruptly downgraded. Bondholders howled, call- ing the move heavy-handed and an overreaction. The agency C E O G O R Q F W H P O B S drew more fire when it reversed itself on some of those down- R Q T P V A C W V I P S T P grades a week later, causing pain for buysiders who had already unloaded the paper to comply with minimum rating-require- H W J P P F I W M P E R X J ments as dictated by their investment guidelines. “Right now, issuers are wondering if S&P’s conduit model W I H O B O F I O D E R G W is economically competitive,” said one portfolio manager at a Q O P P O N R R N I T Y R A major insurer. “If it is, then investors want to know whether S&P will blow up their deals again,” he added. “Everybody K S J K R R X T D T J G F J remembers that full washing-machine ride with S&P in 2009.” E P H T O U F Y U I R M O W The agency suffered another black eye in 2011, when it Real Estate abruptly withdrew its ratings on a $1.5 billion conduit transac- O MAlert,V theW weeklyN P S F I N D E R I tion the day before settlement, after discovering inconsisten- newsletter that cies in the application of its methodology. That unprecedented H PdeliversT theI FlatestW G M K U I K M Q action, which derailed the deal and caused issuers Goldman W OwordT on ImajorG J S W C Q Z T P S Sachs and Citigroup to lose millions, touched off a firestorm of transactions, criticism in the industry and prompted angry issuers to boycott E YmarketE gossipH E O W G J M S D Y K S&P on conduit transactions. O Mand dealmakers’I X T S F K W P W R M P S&P’s CMBS group is led by senior directors James Digney secret strategies. and Deegant Pandya. Digney oversees new-issue ratings. Pan- F VStart ByourM free trialB at E Q M T H S W J G dya is responsible for surveillance, mortgage analytics and Winston Chang M SREAlert.com,R N or callI O V P J W D O S M modeling. Both report to managing directors 201-659-1700. and Steve Anderberg, who have oversight responsibility for A W I K W P X A R H W K B S CMBS. Chang and Anderberg report to Wiemken. With the end of the ban, S&P’s research group will resume P O W S D W H W I W X S O H issuing research reports on the conduit sector. 

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INITIAL INITIAL PRICINGS PRICINGS COMM Mortgage Trust, 2016-CCRE28

Pricing date: Jan. 27 Property types: Office (28.7%), retail (22.9%), hotel (16.6%), industrial (13.2%), Closing date: Feb. 10 multi-family (11.2%), mixed-use (5.8%) and manufactured housing (1.6%). Amount: $1,026.8 million Concentrations: California (39%), Texas (11%) and New York (10.7%). Deutsche Bank, CCRE, Loan contributors: Deutsche (55.3%), CCRE (22%), Jefferies (14.7%) and Ladder (8%). Seller/borrower: Jefferies LoanCore, Largest loans: A $62.5 million portion of an $82.5 million loan to NMS Properties Ladder Capital on 11 apartment complexes, totaling 399 units, in Santa Monica, Calif.; a $60 Deutsche Bank, million portion of a $174.3 million loan to Angelo, Gordon & Co. on 10 Life Time Lead managers: Fitness centers, encompassing 1.3 million sf, in nine states; a $60 million portion Cantor Fitzgerald of a $90 million loan to Maxxam Enterprises and 3D Investments on the 131,000- Jefferies, sf Promenade Gateway mixed-use center in Santa Monica, Calif.; a $57.5 million Co-managers: Academy Securities, portion of a $425 million loan to Rudin Management on the 1.2 million-sf office building at 32 Avenue of the Americas in Manhattan; a $55 million portion of a CastleOak Securities $109 million loan to Oaktree Capital and Clearview Hotel Capital on the 910-room Master servicers: Wells Fargo, KeyBank Hyatt Regency St. Louis at The Arch; a $55 million loan to Jamison Services on Midland Loan Services, the 165,000-sf City Center on 6th retail complex in Los Angeles; a $54.8 million loan to WealthCap on the 147,000-sf Netflix Headquarters-Building 2 in Los Ga- LNR Partners, tos, Calif.; a $48 million loan to David Harrison and Ian Paget on the 103,000-sf Special servicers: Torchlight Loan Services, office building at 1155 Market Street in San Francisco; a $43 million portion of a Rialto Capital, $130 million loan to Rector Hylan Corp. on a 279,000-sf FedEx distribution ware- CWCapital Asset Management house in Brooklyn; and a $40 million portion of a $232 million loan to American Realty Capital Hospitality on 21 hotels, totaling 2,690 rooms, in 13 states. Operating advisor: Park Bridge Lender Services B-piece buyer: KKR. Trustee: Wilmington Trust Notes: Deutsche, CCRE, Jefferies and Ladder teamed up to securitize commercial mortgages they had originated. Certificate administrator: Wells Fargo Deal: COMM 2016-CCRE28. CMA code: 20160004. Offering type: SEC-registered

Amount Rating Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread Class ($Mil.) (Moody's) (Fitch) (DBRS) (%) (%) Price (%) (Date) (Years) (bp) Note Type A-1 21.720 Aaa AAA AAA 30.00 1.770 99.999 1.761 2/10/49 2.86 S+70 Fixed A-2 82.786 Aaa AAA AAA 30.00 2.886 102.996 2.204 2/10/49 4.67 S+87 Fixed A-SB 47.975 Aaa AAA AAA 30.00 3.525 102.997 3.069 2/10/49 7.27 S+142 Fixed A-3 230.000 Aaa AAA AAA 30.00 3.495 100.995 3.388 2/10/49 9.69 S+153 Fixed A-4 281.279 Aaa AAA AAA 30.00 3.762 102.996 3.414 2/10/49 9.78 S+155 Fixed A-HR 55.000 Aaa AAA AAA 30.00 3.651 99.497 3.738 2/10/49 8.21 S+200 Fixed A-M 39.789 Aa2 AAA AAA 26.13 4.066 102.996 3.718 2/10/49 9.83 S+185 Fixed B 73.160 NR AA- AA 19.00 4.647 100.921 4.618 2/10/49 9.83 S+275 Fixed C 50.056 NR A- A 14.13 4.647 90.680 6.018 2/10/49 9.83 S+415 Fixed D 33.371 NR BBB BBB (high) 10.88 3.897 71.444 8.318 2/10/49 9.83 S+645 Fixed E 25.670 NR BBB- BBB (low) 8.38 4.147 63.916 10.168 2/10/49 9.83 S+830 Fixed F 26.954 NR BB- BB (high) 5.75 2/10/49 9.84 Fixed G 11.551 NR B- BB (low) 4.63 2/10/49 9.92 Fixed H 17.969 NR NR B (low) 2.88 2/10/49 9.92 Fixed J 29.521 NR NR NR 0.00 2/10/49 9.92 Fixed XP-A(IO) 703.549* Aa1 AAA AAA 2/10/49 Fixed XS-A(IO) 703.549* Aa1 AAA AAA 2/10/49 Fixed X-HR(IO) 55.000* Aaa AAA AAA 2/10/49 Fixed X-B(IO) 123.216* NR A- AAA 2/10/49 Fixed X-C(IO) 59.041* NR BBB- AAA 2/10/49 Fixed X-D(IO) 26.954* NR BB- AAA 2/10/49 Fixed X-E(IO) 29.520* NR NR AAA 2/10/49 Fixed X-F(IO) 29.521* NR NR AAA 2/10/49 Fixed *Notional amount

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INITIAL INITIAL PRICINGS PRICINGS CSAIL Commercial Mortgage Trust, 2016-C5

Pricing date: Jan. 26 Closing date: Feb. 9 Amount: $936.4 million Property types: Multi-family (25.8%), industrial (21.5%), hotel (21.2%), office Credit Suisse, (13.8%), retail (11.9%), manufactured housing (5.3%) and self-storage (0.5%). Rialto Capital, Concentrations: California (13.2%), New York (10.2%) and Texas (10.1%). Loan contributors: Credit Suisse (36.7%), Rialto (16.3%), BNY Mellon (16%), Seller/borrower: BNY Mellon, Silverpeak (15.9%) and Jefferies (15.2%). Silverpeak Real Estate Finance, Largest loans: An $87.1 million senior portion of a $966.5 million loan to Global Jefferies LoanCore Logistic Properties on 114 industrial properties, encompassing 26.9 million sf, in nine states and Washington, D.C.; an $87 million portion of a $130 million loan to Lead manager: Credit Suisse Rector Hylan Corp. on a 279,000-sf FedEx distribution warehouse in Brooklyn; a $75 million portion of a $200 million loan to Starwood Capital on 50 hotels, total- Drexel Hamilton, ing 6,106 rooms, in 12 states; a $57.5 million loan to Annaly Capital and Mile- Co-managers: Jefferies, stone Group on the 327-unit Ellicott House apartment building in Washington; a

Mischler Financial $56 million loan to Miller Investment on the 485,000-sf office building at 401 Market Street in Philadelphia; a $33 million loan to John Karubian on the KeyBank, 127,000-sf Baldwin Hills Center retail center in Los Angeles; a $30 million loan to Master servicers: Midland Loan Services, Simon Property on the 360-room Embassy Suites Indianapolis Downtown hotel; a Wells Fargo $27.9 million loan to Edward Lorin on the 304-unit Rosecroft Mews Apartments in Fort Washington, Md.; and a $23.2 million loan to Triple Net Acquisitions on Rialto Capital, three industrial properties and one office building, encompassing 339,000 sf, in Special servicers: Aegon USA Realty, three states. B-piece buyer: Rialto Capital. Midland Loan Services Notes: Credit Suisse, Rialto, BNY Mellon, Silverpeak and Jefferies teamed up to Operating advisor: Pentalpha Surveillance securitize commercial mortgages that they had originated or purchased. Deal: CSAIL 2016-C5. CMA code: 20160007. Trustee: Wells Fargo Certificate administrator: Wells Fargo Offering type: SEC-registered

Amount Rating Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread Class ($Mil.) (Moody's) (Fitch) (MStar) (%) (%) Price (%) (Date) (Years) (bp) Note Type A-1 28.557 Aaa AAA AAA 30.00 1.747 100.000 1.727 11/15/48 2.67 S+70 Fixed A-2 121.570 Aaa AAA AAA 30.00 2.879 103.000 2.165 11/15/48 4.52 S+85 Fixed A-3 19.780 Aaa AAA AAA 30.00 3.656 103.000 3.161 11/15/48 6.77 S+157 Fixed A-4 170.000 Aaa AAA AAA 30.00 3.489 101.000 3.374 11/15/48 9.64 S+153 Fixed A-5 267.448 Aaa AAA AAA 30.00 3.757 103.000 3.401 11/15/48 9.73 S+155 Fixed A-SB 48.139 Aaa AAA AAA 30.00 3.533 103.000 3.061 11/15/48 7.14 S+143 Fixed A-S 67.891 Aa2 AAA AAA 22.75 4.010 103.000 3.653 11/15/48 9.77 S+180 Fixed B 51.503 NR AA- AA 17.25 4.463 102.999 4.103 11/15/48 9.77 S+225 Fixed C 42.139 NR A- A- 12.75 4.538 92.954 5.603 11/15/48 9.77 S+375 Fixed D 46.821 NR BBB- BBB 7.75 11/15/48 9.77 Fixed E 23.410 NR BB- BB- 5.25 11/15/48 9.77 Fixed F 9.365 NR B- B 4.25 11/15/48 9.77 Fixed NR 39.798 NR NR NR 0.00 11/15/48 9.77 Fixed X-A(IO) 723.385* Aa1 AAA AAA 11/15/48 Fixed X-B(IO) 51.503* NR AA- AAA 11/15/48 Fixed X-D(IO) 46.821* NR BBB- BBB 11/15/48 Fixed X-E(IO) 23.410* NR BB- AAA 11/15/48 Fixed X-F(IO) 9.365* NR B- AAA 11/15/48 Fixed X-NR(IO) 39.798* NR NR AAA 11/15/48 Fixed *Notional amount

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INITIAL INITIAL PRICINGS PRICINGS

CFCRE Mortgage Trust, 2016-C3

Pricing date: Jan. 22 Property types: Retail (34.3%), office (28.8%), multi-family (13%), industrial Closing date: Jan. 28 (7.2%), mixed-use (5.7%), self-storage (5.7%), hotel (5.1%) and manufactured Amount: $703.6 million housing (0.2%). Concentrations: California (29.8%), New York (11.4%) and Texas (10.3%). CCRE, Loan contributors: CCRE (74.1%), Societe Generale (16.2%) and Liberty Island Seller/borrower: Societe Generale, (9.7%). Liberty Island Largest loans: A $55.5 million portion of a $168 million loan to Hudson Pacific Properties on the 284,000-sf Element LA office campus in Los Angeles; a $52.9 Cantor Fitzgerald, million loan to John Swift on the 137,000-sf office building at 123 Townsend Lead managers: Societe Generale Street in San Francisco; a $50 million portion of a $190 million loan to Simon Property on the 1.1 million-sf Empire Mall in Sioux Falls, S.D.; a $40 million por- CastleOak Securities, tion of a $130 million loan to the Dushey, Adjmi and Cayre families on 78,000 sf Co-managers: Citigroup, of retail space and the leased fee interest in a 350-room Renaissance by Marriott hotel, both in a 40-story building at 215 West 34th Street/218 West 35th Street in Goldman Sachs Manhattan; a $40 million portion of a $174.3 million loan to Angelo, Gordon & Co. Wells Fargo, on 10 Life Time Fitness centers, encompassing 1.3 million sf, in nine states; a Master servicers: Midland Loan Services $40 million portion of a $73 million loan to Weiss Realty on the 739,000-sf One Commerce Plaza office building in Albany, N.Y.; a $32.4 million portion of a $65 CWCapital Asset Management, million loan to Simon Property and Pennsylvania Real Estate Investment on the C-III Asset Management, 611,000-sf Springfield Mall in Springfield Township, Pa.; a $30 million portion of Special servicers: a $120 million loan to NMS Properties on six Los Angeles apartment complexes LNR Partners, with 384 units; a $29 million loan to Honan Physician Partners on the 111,000-sf Rialto Capital Glenridge Medical Center in Atlanta; and a $25.7 million loan to Equity Industrial Partners on three industrial properties, encompassing 653,000 sf, in three states. Operating advisor: Park Bridge Lender Services B-piece buyer: Seer Capital. Trustee: Wilmington Trust Notes: CCRE, Societe Generale and Liberty Island teamed up to securitize commercial mortgages that they had originated. Certificate administrator: Wells Fargo Deal: CFCRE 2016-C3. CMA code: 20160001. Offering type: SEC-registered

Amount Rating Rating Rating Subord. Coupon Dollar Yield Maturity Avg. Life Spread Class ($Mil.) (Moody's) (Fitch) (Kroll) (%) (%) Price (%) (Date) (Years) (bp) Note Type A-1 29.088 Aaa AAA AAA 30.00 1.793 99.999 1.784 1/10/48 2.84 S+70 Fixed A-SB 40.514 Aaa AAA AAA 30.00 3.688 102.995 3.234 1/10/48 7.32 S+155 Fixed A-2 200.000 Aaa AAA AAA 30.00 3.597 100.999 3.490 1/10/48 9.73 S+160 Fixed A-3 222.884 Aaa AAA AAA 30.00 3.865 102.997 3.519 1/10/48 9.86 S+162 Fixed A-M 36.057 Aa2 AAA AAA 24.88 4.147 102.998 3.800 1/10/48 9.87 S+190 Fixed B 37.815 A1 AA- AA- 19.50 4.700 102.999 4.351 1/10/48 9.89 S+245 Fixed C 37.816 NR A- A- 14.13 4.759 93.331 5.756 1/10/48 9.95 S+385 Fixed D 41.334 NR BBB- BBB- 8.25 1/10/48 9.95 S+725 Fixed E 10.553 NR BB+ BB+ 6.75 1/10/48 9.95 Fixed F 8.795 NR BB- BB 5.50 1/10/48 9.95 Fixed G 7.915 NR B- B- 4.38 1/10/48 9.95 Fixed H 30.781 NR NR NR 0.00 1/10/48 9.95 Fixed X-A(IO) 528.543* NR AAA AAA 1/10/48 Fixed X-B(IO) 37.815* NR AA- AAA 1/10/48 Fixed X-C(IO) 37.816* NR A- AAA 1/10/48 Fixed X-D(IO) 41.334* NR BBB- BBB- 1/10/48 Fixed X-E(IO) 10.553* NR BB+ NR 1/10/48 Fixed X-F(IO) 8.795* NR BB- NR 1/10/48 Fixed X-G(IO) 7.915* NR B- NR 1/10/48 Fixed X-H(IO) 30.781* NR NR NR 1/10/48 Fixed *Notional amount

Has Committed $2.3 Billion On 32 Loans Since July 2015

California Office/Industrial Portfolio Queens Multifamily Portfolio $247.2 Million $118.0 Million Refinancing Acquisition Financing 1st Mortgage 1st Mortgage & Mezzanine Loan 31 assets in California 5 assets in Queens, NY

NYC Metro Office Portfolio Village Lake Apartments $97.0 Million $97.6 Million Refinancing Acquisition Financing 1st Mortgage & Mezzanine loan 1st Mortgage Mountain View, CA

SE Hotel Portfolio Galleria Place $94.0 Million $60.7 Million 1st Mortgage & Mezzanine loan Acquisition Financing Limited Service Hotels 1st Mortgage 35 hotels in 11 states Mixed Use Retail/Office Houston, TX

Bardessono Hotel & Spa 101 W 78th Street $40.0 Million $85.0 Million Co-Origination 1st Mortgage Renovation Financing Acquisition Financing Condo Conversion Luxury Resort New York, NY Yountville, CA

www.acorecapital.com

Tony Fineman • tﬁ[email protected] Kyle Jeffers • [email protected] Jason Hernandez • [email protected] Stu Silberberg • [email protected] Josh Katzin • [email protected] Lance Wright • [email protected]

As of January 21, 2016. Reﬂects loans which have closed or for which term sheets have been signed. Subject to change and not a guarantee or indicative of future results. © 2016 ACORE Capital. Trade/service marks are the property of ACORE Capital. All rights reserved. Restrictions apply. Some products are not available in all states. This is not a commitment to lend. This is an advertisement. January 29, 2016 Commercial Mortgage 48 ALERT

INITIAL INITIAL PRICINGS PRICINGS Home Partners of America, 2016-1

Pricing date: Jan. 22

Closing date: Feb. 4 Property types: Single-family rentals (100%). Amount: $508.9 million Concentrations: Texas (19.2%), Illinois (18.6%), Florida (16.2%), Colorado (12.8%) and Georgia (11%). Seller/borrower: Home Partners of America Notes: Home Partners of America floated its first securitization financing rental Citigroup, homes. Home Partners raised $508.9 million by selling bonds backed by a mortgage on single-family homes that it had acquired in the secondary market and Lead managers: Deutsche Bank, then rented. The mortgage will be funded with the proceeds of the bond sales. It

Morgan Stanley has six floating-rate components and a fixed-rate component. The term is two years, with three one-year extension options. The mortgage, in turn, is backed by Master servicer: Midland Loan Services individual mortgages on 2,232 homes in 17 states, as well as Home Partners’ Special servicer: Midland Loan Services equity interest in the properties. The homes have an aggregate value of $654.5 million, based on broker price opinions. The aggregate underwritten annual net Trustee: Christiana Trust cashflow is $29.1 million. Tenants at 2,048 properties have purchase options that Certificate administrator: Wells Fargo take effect in 3-5 years. Home Partners is retaining Class G. Offering type: Rule 144A

Amount Rating Rating Subord. Coupon Dollar Maturity Avg. Life Spread Class ($Mil.) (Moody's) (MStar) (%) (%) Price (Date) (Years) (bp) Note Type A 256.900 Aaa AAA 49.52 L+165 98.295 3/15/33 5.10 L+200 Floating B 44.180 Aa2 AA 40.84 L+220 98.557 3/15/33 5.10 L+250 Floating C 34.363 A2 A 34.08 L+275 97.874 3/15/33 5.10 L+320 Floating D 35.999 Baa2 BBB+ 27.01 L+330 95.630 3/15/33 5.10 L+425 Floating E 41.000 NR BBB- 18.95 L+420 95.290 3/15/33 5.10 L+525 Floating F 70.997 NR NR 5.00 L+560 97.156 3/15/33 5.10 L+625 Floating G 25.444 NR NR 0.00 3/15/33 5.10 Fixed

January 29, 2016 Commercial Mortgage 49 ALERT CALENDAR CALENDAR

Main Events Dates Event Location Sponsor Information May 22-25 Commercial/Multifamily Servicing & Technology Conf. Dallas MBA www.mortgagebankers.org June 13-15 CREFC Annual Conference 2016 New York CREFC www.crefc.org Sept. 7-9 CMBA Western States CREF Las Vegas CMBA www.cmba.com Jan. 9-11, 2017 CREFC Industry Leaders Conference 2017 Miami CREFC www.crefc.org

Events in US Dates Event Location Sponsor Information Feb. 4-5 Bank Special Asset Forum: Real Estate, C&I & SBA Loans Fort Lauderdale, Fla. IMN www.imn.org Feb. 9 Breakfast Meeting New York RELA www.rela.org Feb. 11 Winter Soiree Networking Event New York MBA of NY www.mbany.org Feb. 16-19 National Mortgage Servicing Conference & Expo Orlando MBA www.mortgagebankers.org Feb. 18 New Jersey Lender Discussion Panel Roseland, N.J. RELA www.rela.org Feb. 24 Raising EB-5 Capital for Real Estate New York iGlobal Forum www.iglobalforum.com Feb. 28-March 2 ABS Vegas 2016 Las Vegas SFIG & IMN www.imn.org March 3 Luncheon Meeting Washington RELA www.rela.org March 8 Networking Event New York MBA of NY www.mbany.org March 9-10 High Yield & Distressed Realty Asset Summit New York CREFC www.crefc.org March 29-30 Real Estate Investors Summit Miami Opal Financial www.opalgroup.net April 5-6 Real Estate Private Equity Forum on Land, Homebuilding Miami IMN www.imn.org April 13 REIT Symposium New York NYU Schack www.scps.nyu.edu April 17-19 Real Estate Lending Conference San Antonio ABA www.aba.com April 20-21 Spring Lender Conference 2016 Dallas Trigild www.trigild.com April 21 Mitigation of Risks in Construction Lending New York MBA of NY www.mbany.org April 27-30 REIFACON: Real Estate Investment & Funding Conf. Los Angeles REIFA www.reifa.org May 10-11 CREFC Summit West Santa Monica, Calif. CREFC www.crefc.org May 10-11 Real Estate CFO Forum Dana Point, Calif. IMN www.imn.org May 16-17 Investors’ Conference on CLOs & Leveraged Loans New York IMN www.imn.org May 16-18 Single Family Rental Investment Forum Miami IMN www.imn.org June 9 Real Estate Lending Summit New York MBA of NY www.mbany.org July 11 Networking Event-Golf Outing New York MBA of NY www.mbany.org Sept. 18-20 ABS East Miami IMN www.imn.org Nov. 15 Borrower & Inv. Forum on Real Estate Mezz. Financing New York IMN www.imn.org

Events Outside US Dates Event Location Sponsor Information April 4 Investors’ Conf. on European CLOs & Leveraged Loans London IMN www.imn.org April 26-27 British GRI 2016 London GRI www.globalrealestate.org May 18-19 Espana GRI 2016 Madrid GRI www.globalrealestate.org May 31-June 1 Structured Finance Canada 2016 Toronto IMN & SFIG www.imn.org June 14-16 Global ABS 2016 Barcelona IMN www.imn.org To view the complete conference calendar, visit The Marketplace section of CMAlert.com

xxxJanuary 29, 2016 Commercial Mortgage 501 Commercial MortgageALERT ALERT

MARKET MONITOR

WORLDWIDE CMBS ISSUANCE ($Bil.) WORLDWIDE CMBS CMBS SPREADS 2015 2016 01/06/00 J 0.0 0.0 110 Year-to-date volume ($Bil.) NEW-ISSUE SPREAD OVER SWAPS 01/13/00 0.0 0.1 100 2016 2015 160 01/20/00 0.2 0.2 90 US 3.2 4.9 10-Year AAA 2015 150 01/27/00 2.5 0.9 80 Non-US 0.0 0.6 140 02/03/00 F 5.5 3.2 70 TOTAL 3.2 5.5 130 02/10/00 11.9 60 120 02/17/00 14.0 50 110 02/24/00 14.2 40 03/02/00 M 17.7 30 100 03/09/00 20.8 20 90 03/16/00 20.8 10 2016 80 03/23/00 24.3 0 70 03/30/00 26.7 J F M A M J J A S O N D F M A M J J A S O N D J

04/06/00 A 30.9 Spread (bp) US CMBS CMBS TOTAL RETURNS New Issue 04/13/00 33.6 Fixed Rate Avg. Week 52-wk 04/20/00 35.9 (Conduit) Life 1/27 Earlier Avg. MONTHLY ISSUANCE ($Bil.) CMBS INDEX 5.0 S+104 S+104 72 AAA 04/27/00 37.8 10.0 S+143 S+147 108 15 Total Return (%) 05/04/00 38.1 AA 10.0 S+232 S+234 176 Avg. Month Year Since 05/11/00 M 41.2 12 As of 1/27 Life to Date to Date 1/1/97 A 10.0 S+328 S+331 236 05/18/00 45.4 9 Inv.-grade 5.7 1.0 1.0 212.5 BBB- 10.0 S+666 S+612 433 AAA 5.9 1.2 1.2 197.9 Spread (bp) 05/25/00 45.8 Legacy 6 AA 5.1 0.7 0.7 89.5 06/01/00 46.6 Fixed Rate Avg. Week 52-wk 3 A 4.2 0.4 0.4 74.4 (Conduit) Life 1/27 Earlier Avg. 5.0 S+193 S+198 141 06/08/00 49.2 BBB 4.7 -0.3 -0.3 80.6 AAA 10.0 S+171 S+177 130 06/15/00 J 51.9 0 Source: Barclays N D J F M A M J J A S O N D J AA 10.0 S+1,026 S+1,034 968 06/22/00 54.3 A 10.0 S+1,511 S+1,519 1,441 06/29/00 56.6 BBB 10.0 S+3,180 S+3,189 3,044 LOAN SPREADS 07/06/00 59.0 Dollar Price 07/13/00 J 59.4 Week 52-wk ASKING SPREADS OVER TREASURYS ASKING OFFICE SPREADS Markit CMBX 6 1/27 Earlier Avg. 07/20/00 61.8 AAA 96.7 96.3 98.0 190 07/27/00 65.0 10-year loans with 50-59% LTV AS 96.5 96.1 99.0 Month 180 08/03/00 67.6 1/22 Earlier AA 95.4 94.9 99.7 170 08/10/00 A 71.9 Office 177 169 A 93.5 92.6 99.4 160 BBB- 91.5 90.3 99.1 08/17/00 74.2 Retail 172 166 150 BB 87.6 87.8 98.7 Multi-family 166 161 Sources: Trepp, Markit 08/24/00 74.9 140 Industrial 172 166 08/31/00 74.9 130 09/07/00 75.1 Source: Trepp F M A M J J A S O N D J AGENCY CMBS SPREADS 09/14/00 S 75.4 Spread (bp) FREDDIE K SERIES 09/21/00 79.2 Avg. SpreadWeek (bp) 52-wk REIT BOND ISSUANCE Life 1/28 Earlier Avg. Avg. Week 52-wk 09/28/00 80.8 A1 Life5.5 S+1/2708 EarlierS+70 Avg.45 10/05/00 82.9 UNSECURED NOTES, MTNs ($Bil.) MONTHLY ISSUANCE ($Bil.) AA12 10.05.5 S+S+8708 S+S+7093 4651 10/12/00 85.4 BA 2 10.0 S+S+84258 S+385S+93 22617 35 7 10/19/00 O 86.8 CB 10.0 S+S+425650 S+385S+520 223077 30 6 10/26/00 89.7 X1C 10.09.0 S+T+225650 S+520T+225 301777 25 5 X3X1 10.09.0 T+225T+700 T+225T+585 174176 11/02/00 91.7 20 4 FreddieX3 K Floater 10.07.0 T+L+77000 T+585L+71 416 11/09/00 93.6 15 Freddie K Floater 7.0 L+70 L+71 2015 3 2016 11/16/00 93.8 10 2 FANNIE DUS 5 1 11/23/00 N 98.4 0 11/30/00 100.7 0 Week 52-wk J F M A M J J A S O N D N D J F M A M J J A S O N D J 1/28 EarlierWeek 52-Avg.wk 12/07/00 103.7 10/9.5 TBA (60-day settle) S+1/10028 EarlierS+100 Avg.70 10/9.5 TBA (60-day settle) S+100 S+100 70 12/14/00 105.0 Data points for all charts can be found in The Marketplace section of CMAlert.com Fannie SARM L+73 L+74 Fannie SARM L+73 SourceL+74 : J.P. Morgan Source: J.P. Morgan

January 29, 2016 Commercial Mortgage 51 ALERT

production. Helpern, who started Jan. executive of Crexus Investment when it THE GRAPEVINE 11, previously spent a year at Marin was acquired in 2013 by Annaly Capital, ... From Page 1 Management of New York and five and stayed on for a year as a managing years at Marcus & Millichap. Sobel, who director. Previously, he spent 21 years at initially oversaw it, assisted by originator/ started last month, was a debt broker at TIAA-CREF, leaving as a senior managing underwriter Nick Cassevechia. Jankovsky Cooper-Horowitz for two years. director. worked at J.P. Morgan, Goldman Sachs and Merrill Lynch pre-crash and subse- Credit Suisse has reassigned secu- Morningstar seeks a business-develop- quently led his own advisory shop, JM ritization veteran Ted Moran to run ment professional with 5-10 years of Advisors, and served as a principal at BH secondary-market CMBS trading. He experience and a client-service consul- Capital, both in Dallas. replaced Christopher Callahan, who left tant with a 3-year background to focus last month. Moran previously traded on its various research, ratings and Loan originators Aaron Derby and Ian asset-backed securities. He reports to analytics products. They would report to McConnell leftRedwood Trust last week. fellow managing director Jim Buccola, a sales director Gregg Novek. The market- Their plans are unknown. Derby, a direc- residential mortgage-bond trader who’s ing position would be based in New York tor, had been at the Mill Valley, Calif., been promoted to also oversee trad- or Chicago and the other opening in New REIT for nearly nine years and most ing of private-label and agency CMBS, York or Horsham, Pa. Send resumes to recently managed loan production for the asset-backed securities and CLOs. Buc- [email protected]. Mid-Atlantic, Southeast and Ohio/Michi- cola reports to securitized-product chief gan regions. McConnell, a vice president, Brian Chin. Meanwhile, director Jeff Midland Loan Services is looking for a was at Redwood for five years. Goldberg resigned last week after almost business-development analyst to help six years on the bank’s CMBS trading drum up commercial-mortgage servic- CBRE Capital Markets has hired Mark desk. There’s no word on his plans. ing work, develop marketing materials Helpern and Jared Sobel as vice presi- and maintain client relationships. The dents on its debt and structured-finance Industry veteran Kevin Riordan started recruit would work in the PNC unit’s team in New York. They arrange debt two weeks ago as director of career Overland Park, Kan., office, reporting and joint-venture equity for property development and placement at Rutgers to senior vice president David Eckels. owners, focusing on deals of up to $50 Business School’s Center for Real Estate Three years of experience is required. million. They report to senior manag- in Newark, N.J. He’s also an adjunct pro- To apply, go to pnc.com and click on ing director Mike Riccio, co-head of fessor at the school. Riordan was chief “visit PNC careers.”

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