In The News

In Pennsylvania, Hope for CMBS
Deal Would Be the First With Multiple Borrowers Since Nearly 2 Years Ago

 

There is a glimmer of hope for the credit-starved commercial-property industry in an unlikely place: an office park in the Pittsburgh suburb of Cranberry, Pa.

 

The owner of the Keystone Summit Corporate Park, private-equity firm Keystone Property Group, recently refinanced the building for $53.5 million, including a $41.5 million first mortgage from Deutsche Bank AG DB -1.36% and a $12 million junior loan from Pembrook Capital. What makes this deal stand out is the plan Deutsche Bank has for the first mortgage.

 

The bank made the $41.5 million loan with an intention of selling it as part of a new commercial-mortgage-backed security, or CMBS, offering that also would include assets from other borrowers, according to Matthew Sigel, Keystone's chief investment officer. The deal, expected to close in the second quarter, would mark the first multiple-borrower CMBS offering in about two years. The last three new CMBS deals were all backed by assets owned by a single borrower. A Deutsche Bank spokesman declined to comment.

 

The return of the multiple-borrower CMBS offerings would be an important source of credit to the thousands of property developers and owners who will need to refinance debt in the next couple of years.—Lingling Wei."

 

From The Wall Street Journal, 

In Pennsylvania, Hope for CMBS - Deal Would Be the First With Multiple Borrowers Since Nearly 2 Years Ago

Full Article...

"...it is a well-located asset that requires substantial capital investment..." 

 

The property, which is currently vacant, used to serve as a check cashing and training facility for Bank of America. Keystone Property Group Senior Vice President Matt Sigel tells GlobeSt.com that the property was acquired because it is a well-located asset that requires substantial capital investment. The seller was American Financial Realty Trust. "The seller acquired the property as part of a portfolio and didn't do much with it," he says.

 

From Globest.com

Keystone Continues Streak With $llM Acquisition
Full Article...

“This particular market has a really great story,"

 

“This particular market has a really great story,” said Matt Sigel, Senior Vice President at the Bala Cynwyd real estate company. Sigel likened this suburban office market locally to Exton and even Great Valley, noting that Warrendale has experienced a lot of retail growth and other development activity in recent years. For example, Westinghouse's nuclear division is building a million-square-foot campus nearby."

 

From Philadelphia Business Journal, 

Keystone Property takes strides to Pittsburgh, buys office complex

Full Article...

“Sigel added that Keystone had been tracking the South Florida market for three years, but was on the sideline, waiting for value-added opportunities and for the office condo wrinkle to smooth out."

 

“Pinebrook, which is 70 percent leased, will get $3 million in upgrades, Sigel said.  Sigel added that Keystone had been tracking the South Florida market for three years, but was on the sideline waiting for value-added opportunities and for the office condo wrinkle to smooth out. Office condo converters had gobbled up a lot of inventory and driven up prices on buildings, making deals harder to find..."

 

From South Florida Business Journal 

Dadeland office complex sold, to be renovated

Full Article...

Marshall office complex Keystone Summit might expand

 

“The futuristic office campus in Marshall that formerly housed Fore Systems Inc., Marconi Corp. and later Ericsson AB -- known as Keystone Summit Corporate Park -- could be expanded with up to three new buildings by its owner.

 

"We have talked with Marshall officials about adding new buildings with from 200,000 to 250,000 square feet," said Matthew Sigel, chief investment officer for the owner, Keystone Property Group of Bala Cynwyd, outside Philadelphia.Read more: 

 

From Pittsburgh Tribune Review

Marshall office complex Keystone Summit might expand

Full Article...

“Keystone Property Group, Bala Cynwyd, Pennsylvania, completed a $53.5 million refinance - and potentially part of a multiborrower commercial mortgage-backed securities transaction..."

 

“Keystone Property Group, Bala Cynwyd, Pennsylvania, completed a $53.5 million refinance - and potentially part of a multiborrower commercial mortgage-backed securities transaction - for Keystone Summit Corporate Park near Pittsburgh.

 

Matt Sigel, Chief Investment Officer, and Jessica Jacobs, senior financial analyst at Keystone, provided in-house representation and worked with Matthew Pestronk and Christine Zivkovic, managing directors at Ackman-Ziff, New York, who represented Keystone during the loan negotiation."

 

The capital structure we were able to obtain was similar to what was available in the market prior to the credit crisis - the actual closing of which is concrete evidence of a dramatic improvement in the availability of capital in the marketplace," Pestronk said. "We candidly believe that the economics of this deal were the most aggressive that we have seen since 2007."

 

Keystone confirmed reports that the $53.5 million refinance, expected to close in the second quarter, included a $41.5 million first mortgage from Deutsche Bank AG, New York, and a $12 million junior loan from Pembrook Capital, New York."

 

Magazine article from Mortgage Banking, Vol. 70, No. 6, 

Deutsche Bank Aims for Multiborrower CMBS

Full Article...

“Distressed Real Estate Summit" - Guest Speaking Engagement

 

“Track A – Chicago Commercial Real Estate Investor Panel: Plotting Success in an Economic Turnaround

 

In this panel, hear from prominent area investors, owners, developers and brokers who will bring the issue of expiring real estate debt into focus, and what it will mean for Chicago-area real estate. How are local investors approaching the current climate? Are they selling class B, C and tertiary holdings as way to raise capital? And, how are they approaching the distressed debt buying opportunity?

 

  • Are Chicago-area investors and owners eager to acquire new properties in a distressed debt environment, or are they attempting to maintain their existing portfolios?

  • Is the recession truly over? And, how are landlords preparing for the next cycle?

  • Tenant relationships: How will the current down market impact the interpretation of existing leases and the negotiation of new leases and lease extensions? Bankruptcy? Force Majeure?

  • Should landlords go the extra mile for existing long-term tenants, anticipating an economic turnaround?"

 

Speaking Engagement for GreenPearl Events 

Agenda Link...

Philadelphia Real Estate Consulting