Commercial mortgages

Reven Office REIT is seeking $100 million from a lead investor and $900 million through a "blind pool" initial public offering.

The reality of converting office properties to multifamily housing is not as simple as it might seem, said Lisa Pendergast.

More clarity around values and an urgent need to address looming debt maturities are expected to spark more deals, a report from Jones Lang LaSalle said.

The delinquency rate that Kroll Bond Rating Agency tracks improved last month but JER's recent Chapter 11 filing and 2024 forecasts suggest it's still under pressure.

The real estate investment trust — which counts the private equity firm C-III Capital Partners among its top shareholders — owes more than $100 million to creditors but has less than $50 million of assets, according to a Chapter 11 petition.

The certificates are backed by a single loan for 10 retail centers in nine states. AMC Theatres is the portfolio's largest tenant, representing 10.4% of the portfolio's base rent.

Money has been squeezed out of the market by central banks fighting to get an inflation surge under control. That's made borrowing more expensive for governments, corporates and consumers, and could keep denting spending well into next year.

The credit grader lowered Brookfield Property's score by two steps to BB from BBB-, the lowest level of investment grade, and the rating remains on negative outlook.

Income-producing loans secured by real estate are under pressure at banks, the government-sponsored enterprises, insurers, and in CMBS to varying degrees.

Stress tests suggest systemically important depositories could weather current risks. Meanwhile, single-family arrears remain low, but that business could be impacted.

WeWork, once valued at $47 billion, needs to slash costs and shore up its finances as it tries to continue operating.

The former investment type added to net earnings, but a tough market hurt some sectors of it during a quarter in which the company experienced mixed success with M&A attempts.

The coworking giant's spiral hit landlords along the way as it renegotiated and sought to exit many leases.

WeWork may file its Chapter 11 petition in New Jersey as early as next week, the Wall Street Journal reported, citing people familiar with the matter who it didn't name. 

Credit ratings were cut on the highest number of commercial mortgage-backed securities in "recent memory" last week, according to strategists at Bank of America Corp.

Fewer of these mortgages are paying off, adding to the amount of credit on investors' books, the Mortgage Bankers Association said.

The work-from-home era has wrecked old assumptions about the need for office space, leaving an unprofitable glut in the market, Willy Walker said.

Lenders including Goldman Sachs Group Inc. and JPMorgan Chase & Co. have been trying to sell debt backed by offices, hotels and even apartments in recent months, but many are finding that tidying up loan books is no easy feat when concerns about commercial real estate have surged.

The companies have requested an extension of the floating-rate loan, which matured in July, according to a servicer report.

While multifamily late payments were flat, hotel properties continued to improve but office performance deteriorated significantly from the first quarter, the Mortgage Bankers Association said.