NorthStar REIT Closes $69M in Loans

NorthStar Real Estate Income Trust announced this month that it had originated five new real estate loans according to a National Real Estate Investor Online article. The loans, with a total value of $69 million, carry a weighted average 9.15% interest rate. NorthStar said that the proceeds from the loans were used to finance a variety of property types. The loan summary follows:

- January 18, 2012: $13.5 million first mortgage senior loan secured by a 693-unit multifamily property in Jacksonville, Florida

- January 6, 2012: $12.0 million first mortgage senior loan secured by a 69-room hotel located in Miami Beach, Florida

- December 29, 2011: $9.2 million first mortgage senior loan secured by a 111-room hotel located in Panama City, Florida

- December 16, 2011: $29.8 million in four cross-collateralized, cross-defaulted first mortgage loans secured by four hotel properties containing 500 rooms located in Virginia's greater Hampton Roads MSA

- December 9, 2011: $4.5 million mezzanine loan secured by a pledge of ownership interests in four assisted living facilities containing 390 beds located in El Paso, Texas

"These five loans are consistent with the investment objectives of NorthStar REIT," said Daniel Gilbert, President and Chief Investment Officer of NorthStar REIT. "We continue to demonstrate NorthStar REIT's ability to identify and capitalize on loans that aim to generate consistent current income while providing downside protection for investor capital."

For more news and information visit Blumberg Capital Partners.

Colony Picks up $817M FDIC Portfolio

A consortium of investors organized by Colony Capital has acquired two portfolios of distressed assets from the Federal Deposit Insurance Corp. for about $193 million. The loans, which were for residential and commercial property acquisition, development and construction, had a total unpaid principal balance of $817 million. Los Angeles-based Colony, led by Chairman Tom Barrack, already has won four other portfolios of FDIC mortgages valued at more than $3 billion, making it the largest winner of multiple deals according to a Wall Street Journal article.

Colony, which put some money in the purchase, will be in charge of disposing of the assets, working out settlements with the borrowers, foreclosing or reselling the loans. Colony said it acquired the two portfolios of 1,505 residential and commercial loans for 23.6 cents on the dollar.

For more news and information visit Blumberg Capital Partners.

MBA Report Shows CRE Market Strengthening With Economy

The Mortgage Bankers Association (MBA) released its Commercial Real Estate/Multifamily Finance Quarterly Data Book for Q3 this week showing some grown in the markets as the economy begins to rebound with sales up 122% in the year to date. While mortgage delinquencies were mixed, property sales and originations volumes picked up with marginal declines in vacancy rates and a firming of asking rents. An excerpt from the report:

"Conditions in the commercial real estate industry were mixed during the reporting period. Several Districts reported flat demand and high vacancy rates, which translated into limited nonresidential construction activity. The New York, Atlanta, and Kansas City Districts noted some weakening in nonresidential activity, while the Boston and Dallas Districts indicated some modest improvement in commercial real estate. Reports from Cleveland and Chicago noted that most new projects fell generally into the infrastructure category. Contacts in Boston, Richmond, Kansas City, and Dallas expressed some optimism about the near-term outlook in their Districts, but contacts in several other Districts expressed a more cautious outlook."

For more news and information visit Blumberg Capital Partners.