JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC) are among banks that made final bids to buy portions of Anglo Irish Bank Corp.’s $9.65 billion of U.S. property loans, according to three people with knowledge of the sales.
The lenders are looking to acquire pieces of the $4.52 billion of performing loans the Dublin-based bank is shedding, said the people, who asked not to be identified because the talks are private. Investor groups led by private-equity firms Blackstone Group LP (BX), working with Deutsche Bank AG (DBK), and Lone Star Funds also submitted offers for parts of the portfolio, which include $5.13 billion of subperforming and non-performing debt, the people said.
“Banks like Wells and JPMorgan can afford to pay more than a nonbank for the performing loans,” said Ben Thypin, director of market analysis for Real Capital Analytics Inc., a property- research firm in New York. “Private-equity firms like Blackstone and Lone Star can bid aggressively on the nonperforming pieces because they have a large workout infrastructure in place.”
Read More: http://www.bloomberg.com/news/2011-08-25/jpmorgan-wells-said-to-make-final-bids-for-anglo-irish-real-estate-loans.html
Five Mile Capital Partners LLC is in talks with Innkeepers USA Trust after Cerberus Capital Management LP said this week it will walk away from an agreement to buy 64 Innkeepers’ hotels, according to two people with knowledge of the discussions.
Five Mile, which lost to Cerberus in a May auction of the Innkeepers’ properties, remains interested as it nears completion of a separate deal to take control of as many as 140 Red Roof Inns, said the people, who asked not to be named because the information is private. The Stamford, Connecticut- based investment firm’s talks with Innkeepers are at an early stage and may not lead to a deal, they said.
“Bidders who lost the last time may jump at the chance to re-engage with Innkeepers now that the original deal has been terminated,” said Ben Thypin, director of market analysis for Real Capital Analytics Inc., a New York-based property-research firm. “As Five Mile closes in on a potential acquisition of Red Roof, they may be more competitive now that they have a chance to significantly grow their footprint in this sector.”
Read More: http://www.bloomberg.com/news/2011-08-25/five-mile-capital-said-to-talk-with-innkeepers-after-cerberus-backs-out.html
Fortress Investment Group LLC (FIG), Colony Capital LLC and Starwood Capital Group LLC are among a record number of private-equity firms raising real estate funds, according to people familiar with the process, driving down fees in a business reeling from earlier losses.
There are 441 private-equity firms raising real estate funds, 63 more than a year ago and almost twice the number in 2008, according to London researcher Preqin Ltd. Companies including Related Cos., the New York developer founded by Stephen Ross, and asset manager AllianceBernstein Holding LP (AB) have wooed investors and almost completed fundraising, said two of the people, who asked not to be named because the process is private.
“Despite the turmoil of 2008, sponsors can still make a compelling pitch that there are opportunities to invest in commercial real estate either by making loans or buying properties and debt,” said Ben Thypin, director of market analysis for Real Capital Analytics Inc. in New York. “Commercial real estate is still seen as a space for outsized returns.”
Read More: http://www.bloomberg.com/news/2011-08-17/colony-joins-buyout-firms-seeking-real-estate-funds-as-fees-under-pressure.html
The City Club Hotel, a former gentlemen's club built in 1904, is considered one of the hidden gems of the New York hotel market, a place where celebrities and other sophisticated travelers stay, because of its relatively low profile. The hotel is located in a prime location between Fifth and Sixth avenues, and is the home to chef Daniel Boulud's DB Bistro Moderne.
Jared Kelso, senior director at Cushman & Wakefield, said that Starwood Property's background in the hospitality business allowed them to structure a complex deal in about three weeks, where more traditional lenders would have taken a pass.
"There are a lot of lenders that can claim to understand the New York City market, but there are very few who can claim to understand the intricacies of hotel ownership," said Kelso, who represented the City Club owners. "They got the story."
Ben Thypin, senior market analyst at Real Capital Analytics, agreed that Starwood may be uniquely able to structure more complex loan deals in the current hotel market.
"It seems to me they're concentrating on the type of opportunities a more conventional lender would be less willing to do," said Thypin, noting that they seem to be willing to lend on riskier deals that others might not take a chance on.
Despite the success of his new venture, Sternlicht remains concerned about the pace of the market and warns of a debt bubble.
"I was seeing deals where the debt was more than what I was willing to pay for the assets," Sternlicht said.
Read More: http://therealdeal.com/newyork/articles/sternlicht-s-next-stop-new-york-city
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.