News & Analysis

Higher provisions for bad loans have hit Sareb, more than doubling the net losses to €585m in 2014. Spain's bad bank has been operating for two years, dealing with €50.8bn of distressed real estate related loans and assets. For 2014, it has written down €719m of toxic loans which are unlikely to be recovered. The bulk of these, €628m were originally unsecured credits and the borrowers are insolvent. Spain's central bank has required Sareb to increase and accellerate their write down.
Julia Marciano has joined Allianz Real Estate as head of loan asset management of European debt, based in the Paris office.
Deutsche Hypo, part of Nordeutsche Landesbank, increased its new lending on commercial real estate by 36% in 2014, to €3.6bn. However, profits were 36% down , to €41.4m, because of €42m of provisions against Austrian Heta, the ‘bad bank’ of Hypo Alpe Adriabad.
Guggenheim Commercial Real Estate Finance has provided a $30m loan to ACF Property Manegement for its acquisition of The Shoppes at Bedford Mall, a retail center in Bedford, New Hampshire. The 10-year, fixed rate loan carries a 65% loan-to-value based on the $46.1m that ACF paid Emmes Asset Management Company for the 277,000 sq ft complex.
Cantor Commercial Real Estate has provided a $33.3m loan to Ashford Hospitality Trust for the acquisition of the Marriott Memphis East in Memphis, Tennessee. The two-year floating rate loan carries a 77% loan-to-value based on the $43.5m that the REIT paid for the 232-room hotel earlier this year. The 10-story hotel underwent extensive renovations in 2012 when it was converted from a Holiday Inn Select to a full-service Marriott.
PVE Capital, a European credit investment firm, has bought a €408m portfolio of Italian non-performing loans, reports Private Debt Investor, our sister publication. The book comprises residential and commercial real estate loans, with the former making up around 75% of the assets, said Gennaro Pucci, founder of PVE Capital PVE raised a new credit fund from third-party investors in just two weeks in January to support the purchase from a small Italian private bank, Pucci said. He declined to say what the total size of PVE European Credit Fund I is but explained that it holds between 20% and 30% of the Italian NPL portfolio.
HSBC Bank has provided $55m in first mortgage financing to Synergy Investments to refinance 185 Dartmouth Street, a repositioned 164,600 sq ft boutique office and retail building in Boston’s Back Bay neighborhood.
Mesa West Capital has provided The JBG Companies with $27m in first mortgage debt to refinance the Westin Reston Heights, a full-service hotel in Reston, Virginia. The five-year floating rate loan takes out the existing debt on the 191-room hotel, which Chevy Chase, MD-based JBG built in 2008. Wells Fargo provided a previous $47.8m loan on the property in March of 2007, city property records show.
Construction crews today were busy hoisting wood paneling and other supplies up the scaffolding that now surrounds the existing four-story structure, which previously housed a parking garage, car rental agency and a bridal fabric shop that had occupied a ground-level retail space for nearly four decades.
Bank of the Ozarks has provided $83.5m in construction financing to McSam Hotel Group for the development of a hotel at 346-354 West 40th Street, city property records show.
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