Momentum Monitor: Brookfield jumps into Kushner-666 Fifth fray; CMBX 6 indices shrug off new store closures - CMBS Monthly Report for May

01 June 2018
 
Brookfield Asset Management stepped into the politically-charged saga of Kushner Cos’ 666 Fifth Avenue property last month when it was revealed that the company was in late-stage discussions to buy out Vornado Realty Trust’s stake in its office portion. Brookfield’s signaled interest in the Manhattan office property underscores growing investor appetite for opportunities in distressed corners of the office market that is smoothing the way for a range of workouts.  
 
Retail-heavy CMBX 6 BBB- and BB indices tightened in May, though they ended the month wider than their mid-month lows after market sentiment darkened on news of more Sears store closures and the unexpected resignation of JCPenney’s CEO on 22 May. 
 
Meanwhile, hotel deals helped drive CMBS issuance USD 8bn above last year as USD 6.3bn priced in May. 
 
Read about distressed CRE loans and CMBS as well as the secondary and primary markets — and view data on distressed loans, secondary market activity, new issue pricings and our market coverage — in the Debtwire ABS CMBS Monthly Report for May.