Term Sheet: Blackstone’s trophy extension; Apollo’s Bridge acquisition; Cain’s $300m mezz addition

Blackstone secures a critical extension on $1.3 billion of Willis Tower CMBS debt; Apollo Global Management, Inc. picks up more credit capabilities with $1.5 billion acquisition of Bridge Investment Group ; Cain International is adding $300 million of private mezzanine debt to its Beverly Hills mega-project; and more in today’s Term Sheet.

Tips & feedback to Samantha Rowan or email [email protected]

They said it

“While those buildings are in distress, there [are] opportunities to buy them at prices where it makes sense to do these conversions. This is a moment in time; it won’t last forever”?

Brian Steinwurtzel , co-chief executive at New York-based developer GFP Real Estate , talks to CNBC about potential office-to-residential conversions, especially of Class B and C buildings.?

What’s new

More than a feeling

Trophy office assets this week continued their run at the top of the sector’s financing table. New York-based manager Blackstone lined up a debt extension linked to $1.33 billion of commercial mortgage-backed securities financing on Chicago’s Willis Tower.

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One more time

Mezzanine debt is on the rise in Southern California. London-based manager Cain International secured a $300 million mezzanine debt investment from New York-based investment trust Vici Properties and Miami-based Eldridge Industries to help back a $5.2 billion mixed-use, luxury development dubbed One Beverly Hills.

Trending

Increased risk

Commercial mortgage-backed securities investors are facing risk around properties leased to the General Services Administration, which handles the real estate needs of all US agencies, per a report published last week by Fitch Ratings.

Figuring it out

A wave of office refinancings since the start of the year is bringing welcome relief to landlords – and not just those with trophy properties. New York-based manager RFR this week secured a $160 million refinancing for the Midtown office tower 475 Fifth Avenue. 摩根大通 and 花旗 , New York-based bank lenders that also provided a prior $180 million loan for the property, agreed to refinance the existing debt alongside new equity from undisclosed partners, according to reports. Continue reading...

Data snapshot

Mortgage-backed malleability

The wall of commercial mortgage-backed securities debt coming due in 2025 could pose significant near-term rollover risk, according to a report this week from data provider Trepp, Inc. . Of the $87.3 billion of extendable CMBS loans, nearly $48.6 billion (56 percent) will face their final or “hard” maturity in 2026.

Read more here.

People

Dynamic duo

A pair of veteran real estate investment professionals this week rolled out plans for a combined advisory business. Darcy Stacom and Wendy Silverstein co-founded StacomSilverstein , a capital markets real estate advisory firm based in New York.

Fresh admin

Irvine-based manager Sabal Investment Holdings this week added to its C-suite. The firm appointed Anny C. as chief administrative officer to oversee financial performance, risk mitigation, regulatory adherence and technological support to back the firm’s business initiatives.

Loan in focus

Sarasota niche

South Florida remains a consistent financing target for coastal construction opportunities. New York-based lender S3 Capital this week originated a $50 million construction loan for a six-story, mixed-use condominium project the firm believes will fill a niche in Sarasota market.

Get the details of this week's Term Sheet here.