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Volume 2 - Number 16 | August 29, 2005
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TOP STORY: CMBS Innovations Answer Borrowers' Demands
By Erika Morphy
It has been several months since the first so-called “super-duper senior AAA-rated CMBS” deals came to market. Variants of the super-seniors introduced late last year, these transactions have a 30% subordination level as opposed to the now-standard 20% of the super seniors. Wachovia Bank, for instance, included an AAA class with a 30% subordination level in a $1.4 billion deal early this summer. While the super-dupers are designed to attract the same investors as those of super-seniors, says Daniel Vinson, vice president, GE Commercial Finance Real Estate, the development of the super-dupers illustrates the growing sophistication of bond structures and their benefit to borrowers.
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INSIDER: Lowe Enterprises' Peter R. O'Keefe
By Benjamin Mark Cole
Lowe Enterprises—a Los Angeles-based commercial property development, investment and management firm—has seen the ups and downs in the industry for the past 33 years. Currently, its investment management division manages more than $2 billion in assets for institutional clients. Deep in the trenches at Lowe is senior vice president Peter R. O'Keefe, who's in charge of arranging debt and equity for investment and development projects.
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Risky Business: New Trends in Mezzanine Finance
By Erika Morphy
Over the past few years, mezzanine financing—along with the rest of the capital stack—has evolved to meet the needs of seemingly insatiable market demand. This is not a bad thing, at least according to the borrower's perspective. But some analysts and investors worry about the ramifications of lending that have stretched way beyond the original definition of mezzanine finance.
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What's Hot, What's Not
By Erika Morphy
What's Hot: Retail CMBS—Fitch Ratings says that CMBS transactions are not going to be affected by the wave of consolidations taking place in the department store industry, typified by this year's merger between Federated Department Stores Inc. and the May Department Store Co.
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