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Monthly Archives: July 2012

San Francisco Office Sales May Exceed 2007 Peak in 2012

San Francisco office sales may exceed $5.3 billion this year. “It’s pretty easy to see why prices are escalating so quickly with a tech boom going on,” according to Dan Fasulo, Managing Director of commercial real estate research firm Real Capital Analytics. “It’s a phenomenon taking place nowhere else.”

The only U.S. submarket that compares to San Francisco is New York’s midtown south, the area roughly between 34th and Canal streets that’s popular with technology and media companies, Fasulo said.

For more information on the the office market, read US Capital Trends Office Mid-Year Review 2012.

Angelo Gordon to Start Mortgage Fund for Property Recovery Bet

Angelo Gordon firm joins hedge funds including Brevan Howard Asset Management LLP and D.E. Shaw & Co. in starting pools this year to buy securities tied to mortgages. The firm estimates “transitional asset holders” such as governments and legacy investors have more than $120 billion in non-agency residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt obligation assets that are potentially for sale, with $80 billion of that from European banks seeking to cut leverage and adhere to new capital rules.

U.S. residential real estate prices fell in April at the slowest pace in more than a year, adding to signs the housing market is firming. U.S. commercial-property prices are recovering after falling as much as 39 percent from a 2007 peak, according to an index compiled by Moody’s Investors Service and Real Capital Analytics Inc.

San Francisco Office Sales May Exceed 2007 Peak in 2012

San Francisco office sales may exceed $5.3 billion this year. “It’s pretty easy to see why prices are escalating so quickly with a tech boom going on,” according to Dan Fasulo, Managing Director of commercial real estate research firm Real Capital Analytics. “It’s a phenomenon taking place nowhere else.”

The only U.S. submarket that compares to San Francisco is New York’s midtown south, the area roughly between 34th and Canal streets that’s popular with technology and media companies, Fasulo said.

For more information on the the office market, read US Capital Trends Office Mid-Year Review 2012.

Angelo Gordon to Start Mortgage Fund for Property Recovery Bet

Angelo Gordon firm joins hedge funds including Brevan Howard Asset Management LLP and D.E. Shaw & Co. in starting pools this year to buy securities tied to mortgages. The firm estimates “transitional asset holders” such as governments and legacy investors have more than $120 billion in non-agency residential mortgage-backed securities, commercial mortgage-backed securities and collateralized debt obligation assets that are potentially for sale, with $80 billion of that from European banks seeking to cut leverage and adhere to new capital rules.

U.S. residential real estate prices fell in April at the slowest pace in more than a year, adding to signs the housing market is firming. U.S. commercial-property prices are recovering after falling as much as 39 percent from a 2007 peak, according to an index compiled by Moody’s Investors Service and Real Capital Analytics Inc.

Sources: $200 Million Newport Tower Loan Imminent

“The basic reasoning was that we wanted exposure to metropolitan New York office and we saw this as an opportunity to do that in a way that, in our view, gave us a tremendous rent role of blue chip tenants in the building with longterm duration leases,” Mr. Standiford said. “The Newport, Exchange Place submarket has great supply and demand fundamentals.”

Those tenants include BNP Paribas and AXA Equitable, according to Real Capital Analytics. Competition, he added, is limited in the area due to market rents that make building new construction difficult to justify.

At the Newport Tower currently, Mr. Standiford estimated, the occupancy rate, taking into account pending leases, is roughly 93 percent.

Sources: $200 Million Newport Tower Loan Imminent

“The basic reasoning was that we wanted exposure to metropolitan New York office and we saw this as an opportunity to do that in a way that, in our view, gave us a tremendous rent role of blue chip tenants in the building with longterm duration leases,” Mr. Standiford said. “The Newport, Exchange Place submarket has great supply and demand fundamentals.”

Those tenants include BNP Paribas and AXA Equitable, according to Real Capital Analytics. Competition, he added, is limited in the area due to market rents that make building new construction difficult to justify.

At the Newport Tower currently, Mr. Standiford estimated, the occupancy rate, taking into account pending leases, is roughly 93 percent.

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