Erika Morphyis co-editor of Debt and Equity Journal, from whichthis article is excerpted.

New York City—Now that locally based Blackstone GroupLP has won the bidding for Equity Office PropertiesTrust of Chicago, the capital markets will have to digest muchof the $39-billion acquisition price. The first loans could show upin the CMBS markets as soon as early March.

To be sure, at $200 billion, the CMBS market has illustrated itcanhandle huge volume. However, the larger deals that have beensecuritized thus far have not been much more than $5 billion, ifthat. Until recently, the speculation was whether a $6-billion CMBSdeal would be brought to market in 2007. The EOP-Blackstone Groupdeal, though, would require several such CMBS transactions, or atleast one double the size of the larger deals.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.