Finance Lending
$135M Financing Secured for 1MSF Yonkers Shopping Center
Oct 23, 2009
It's almost like the good old days of 2007 when loans over $100 million
for commercial real estate practically rained from the sky. Undeniably,
those times have not returned, but news that Brooks Shopping Center
L.L.C., owner of the 1 million square-foot Cross County Shopping Center
in Yonkers, N.Y., has gotten its hands on a $135 million first mortgage
to finance the property's redevelopment certainly brings back good
memories.
Fitch: CRE Losses to Increase into Next Year
Oct 22, 2009
Good news in the commercial real estate world seems to be in short
supply these days. In a study released earlier this week by Fitch
Ratings, they’re indicating that losses will increase this year and
next for the U.S. CMBS.
RCA: Recovery Rate on Defaulted Loans Only 60%
Oct 19, 2009
It comes as no surprise that lenders continue to be plagued by
commercial mortgage defaults and, according to a recently released U.S.
Capital Trends report by global research and consulting firm Real
Capital Analytics, the recovery rate on these troubled loans is just 60
percent.
Economy Watch - Foreclosures Trend Upward in Usual Places
Oct 16, 2009
More than 925,000 U.S. homeowners received a foreclosure notice of some
kind -- a default notice, scheduled auction or bank repossession --
during the third quarter of 2009, according to RealtyTrac, a figure
that represents a 5 percent increase over the second quarter and a 23
percent increase over 3Q08. One in every 136 U.S. housing units
received a foreclosure filing during the quarter, which was the highest
quarterly foreclosure rate since the company began issuing its report
in the first quarter of 2005 -- though admittedly, that was during the
run up to the bubble peak.
Distressed Debt Sales Likely to Soar
Oct 15, 2009
Like moths to a flame, investors these days are forming around what
some believe could be the biggest distressed debt sales market since
the days of the U.S. savings and loan crisis, according to a recent
Ernst & Young survey.
Economy Watch - Feds to Publish CRE Loan Modification Guidelines Soon
Oct 15, 2009
The heads of the Federal Deposit Insurance Corp., Office of the
Comptroller of the Currency and Office of Thrift Supervision were all
before the U.S. Senate Subcommittee on Financial Institutions on
Wednesday sounding a warning about bad commercial real estate loans and
their threat to the health of the banking system, none of which is
news, but all of which is troubling.
Economy Watch - California Incentivizes Green Rooftops
Oct 13, 2009
Gov. Arnold Schwarzenegger was busy over the weekend signing off on
policies that could have an impact on green real estate development.
Among other things, he signed a memorandum of understanding with U.S.
Secretary of the Interior Ken Salazar to expedite the siting of
California renewable energy projects, thus making California the first
state to do so. The memorandum commits the federal government to work
with California to review and approve renewable energy applications in the state.
Economy Watch - Foreclosure Efforts Not Paying Off?
Oct 12, 2009
Is the federal effort to forestall residential foreclosures all the administration is cracking it up to be? As reported by CPE,
late last week the U.S. Treasury Department was trumpeting 500,000 as
the number of homeowners who have had their mortgage payments
(temporarily) lowered under the Making Home Affordable program, which
began earlier this year.
Economy Watch: Fannie, Freddie Still Vexed by Mortgage Defaults
Oct 09, 2009
Federal Housing Finance Agency acting director Edward J. DeMarco told
Congress on Thursday that it ain’t over till it’s over when it comes to
the problems caused by U.S. housing mortgage delinquencies. And for
Freddie Mac and Fannie Mae especially, it’s not nearly over.
Lenders Step Up Activity for CRE Investments in U.K.
Oct 07, 2009
For U.K. property investors looking to borrow, lending volume increased
from the first to the second quarter of this year, according to a
report by international real estate advisor Savills. The change i s all
about pricing corrections and a decrease in the cost of funding for
banks.
Beyond Banks and Life Companies
Oct 07, 2009
While commercial banks and life companies continue to dominate the limited volume of commercial real estate lending currently taking place, new lending sources are beginning to emerge to replace a portion of the liquidity formerly supplied by the now dormant CMBS market. The three vehicles most often used to raise this new capital are (i) private/non-traded REITs, (ii) publicly traded mortgage REITs and (iii) private equity debt funds.
To Shore Up Balance Sheets, REITs Like Brandywine Look to Divest Non-Core Assets
Oct 06, 2009
With loans still hard to come by, Brandywine Realty Trust is shoring up
its balance sheet, reducing leverage and preparing for investment
opportunities with the disposition of non-core assets, including two
properties in Trenton, N.J. The REIT just completed the sale of the
office buildings at 33 W. State St. and 50 E. State St., totaling
474,000 square feet, to a private investment group.
CREW Keynote: Lingering Unemployment No Surprise; All Recoveries are Jobless
Oct 05, 2009
The economic crisis started with a credit crunch, has undergone the
containment stage with the government providing bailout packages and
stimulus money, and is now in the resolution stage, said Marci Rossell,
former chief economist for CNBC, who was a keynote speaker at the CREW
Network’s convention in Boston last week.
Economy Watch: What the Fed Wants
Oct 02, 2009
Ahead of the report on Friday about unemployment from the U.S.
Department of Labor, from which no one is expecting particularly good
news, various members of the Federal Reserve were on the speaking
circuit talking about the economy and the role of the Fed.
Manhattan Office Market Stabilizing
Oct 01, 2009
The Manhattan office market, which was hard hit by the recent economic
and financial upheaval, is showing some signs of getting back on track,
and is expected to become increasingly more stable and fundamentally
sound in the coming months.
Economy Watch: Mortgage Delinquencies Rise Again
Oct 01, 2009
The U.S. Office of the Comptroller of the Currency reported on
Wednesday that 5.3 percent of all residential mortgages that it tracks
(about 64 percent of the outstanding total nationwide, or about $6
trillion in principal balances) were seriously delinquent, or more than
60 days behind, in 2Q09. That’s up from 4.8 percent during the first
quarter of the year, and up from 3 percent a year ago.
New Program Offers $1B for Green Retrofits
Sep 30, 2009
A new program could provide a sizable jolt to the already-popular
practice of retrofitting existing commercial properties to increase
environmental sustainability. The Community Preservation Corp., a
non-profit affordable housing lender, has unveiled a new public-private
partnership that aims to provide $1 billion in funding for energy
efficient upgrades and green retrofits to multi-family properties.
Economy Watch: Home Prices Edge Upward, But Consumers Still Nervous
Sep 30, 2009
Home prices in the 20 metro markets surveyed by the S&P
Case-Shiller home-price indexes were up in July from June by 1.6
percent, which is believed to be a sign that there’s finally a floor
under the U.S. housing market, especially since it’s the third monthly
increase in row. The floor is in the basement, since prices are still
13.3 percent lower than in July 2008, and roughly at the same levels as
in 2003.
Economy Watch - New Home Sale Eke Out August Uptick
Sep 28, 2009
New home sales were up in August according to the U.S. Department of
Commerce, but only by 0.7 percent when compared with July. New-home
sales were 429,000 in August, up from 426,000 in July; the August 2009
total was 3.4 percent less than in the same month in 2008. Reportedly
economists, as polled by Thomson Reuters, were surprised that sales
weren't more robust. But apparently a technical recovery from a
recession isn't a terrific impetus to run out and buy a house.
CRE Mortgage Debt Drops in Q2, But News Not All Good
Sep 25, 2009
The overall level of outstanding commercial and multi-family mortgage
debt decreased in the second quarter, according to the Federal Reserve.
But despite the drop, the news was not all good, and many significant
issues remain to be worked out in the debt market.
NJ Office Owner Lands $25M Refi
Sep 25, 2009
The New Jersey office of Holliday Fenoglio Fowler L.P. has arranged a
$25 million refinancing for Glenpointe Centre West, a
333,600-square-foot, Class A office building in Teaneck, N.J.
Russian Equity Partner Comes Aboard on $4B Atlantic Yards Project
Sep 24, 2009
The $4 billion Atlantic Yards mixed-use development--the centerpiece of
which will be the Barclays Center sports and entertainment arena,
future home base of the NBA's Nets team--has new financial backing.
Developer Forest City Ratner Cos. Inc. and Nets Sports and
Entertainment have just signed a letter of intent to form a strategic
partnership with an affiliate of Moscow-based international private
investment fund Onexim Group for the development of the 22-acre
project. The multi-faceted deal calls for Onexim to invest $200 million.
Economy Watch - CRE Buying Opportunities: Not as Many as Anticipated
Sep 24, 2009
REIT IPOs may have been the big thing this summer in commercial real
estate finance, but there are signs that the party is cooling off.
Namely, both Apollo Commercial Real Estate Finance Inc. and Colony
Financial Inc., which specialize in mortgage holdings, cut their IPOs
in half on Wednesday, according to filings with the SEC. Apollo now
plans to sell 10 million shares instead of 20 million, while Colony
reduced its offering from 25 million shares to 12.5 million.
Economy Watch - Retailers Face Flat Holiday Season
Sep 23, 2009
The 2009 holiday sales season (along with the rest of the fourth
quarter of this year) will be bad for retailers, predicts Retail
Forward, in a bit of forecasting that's hard to disagree with. The
retail consultancy is predicting average 4Q09 retail sales will neither
grow nor decline when compared to abysmal 4Q08 retail sales. Zero
percent growth, Retail Forward pointed out, will be the second-worst
growth in more than 40 years--only 2008 being worse.
Little Success Expected from Lender Efforts to Limit Foreclosures
Sep 22, 2009
Lenders have been trying to control the threatening river of foreclosures by extending loans, in hopes owners will be better able to refinance them when times are better. According to respondents to CPE’s Fast Poll, though, this effort will do little to stem the tide. The majority of respondents expect many problems to come, with more than 40 percent predicting the worst.
Economy Watch - Leading Economic Indicators Wax Positive
Sep 22, 2009
The Conference Board's index of leading economic indicators rose again for the fifth month in a row, the longest positive stretch for the indicies in five years, adding more weight to the notion that the recession is over, at least technically. According to the New York-based organization, the index--which forecasts the economic outlook for the next three to six months--rose 0.6 percent in August.
NorthMarq Places $28M for Minnesota Portfolio
Sep 21, 2009
NorthMarq Capital’s Minneapolis regional office has arranged first
mortgage financing of $28 million for Mendota Office Center I, II, III,
IV and American Corporate Center.
Economy Watch - IRS Changes Rules for Securitized Loan Modification
Sep 21, 2009
From the nether reaches of the Internal Revenue Service a new tax rule recently emerged (Revenue Procedure 2009-45), the effect of which will be to let real estate borrowers pursue possible modifications to securitized loans--ones that are at risk of default--without triggering tax penalties. Previously, administrative tax rules imposed severe penalties for changes made to commercial mortgage pools or investment interests after the startup date of the securitization vehicle. This naturally had the effect of keeping borrowers mum until default had actually occurred or was nigh.
Grubb & Ellis Adds 3 to Capital Markets Group
Sep 17, 2009
Grubb & Ellis Co. has appointed a trio of professionals to serve as
executive vice presidents in the firm’s capital markets division. The
newly-hired team includes Jon Epstein, Charles Kingsley and Yoav
Oelsner, all formerly with Cushman & Wakefield Inc.
Portfolio Lenders Vie to Win War
Sep 17, 2009
At first glance, it may seem that life insurance companies have resigned themselves to sitting idly by while local and regional banks scour the market with a glass-half-full approach to new originations. On the contrary, at a time when most portfolio lenders are redeploying capital allocated for real estate lending within their existing portfolios, a select--and very bullish--few are vying to win the opening salvo of an impending price war.
Cushman Turns to New Financing Sources for $43M Manhattan Hotel Refi
Sep 16, 2009
The economic downturn continues to exert a tight grip on the hospitality
sector, squeezing fundamentals and greatly limiting financing options.
Cushman & Wakefield Sonnenblick Goldman's global hospitality group
worked through this harsh environment to score a $43 million
refinancing for a Manhattan hotel.
Economy Watch - Bernanke Says Recession Over--Technically
Sep 16, 2009
Federal Reserve Chairman Ben Bernanke, speaking at the Brookings
Institution on Tuesday, said that the recession is "very likely" over.
Or, to quote the chairman more fully: “From a technical perspective,
the recession is very likely over at this point.”
Economy Watch - Lessons Learned from Lehman?
Sep 15, 2009
A year after the failure of Lehman Brothers, President Obama came to
Federal Hall in New York--the literal Wall Street--to push for reform
of the financial sector, including a "resolution authority" that would
let the federal government deal with companies that pose "systemic
risk" for the economy. Such as Lehman or other even bigger institutions
that were not allowed to fail last year. Unlike other audiences
recently, the president was reportedly met with mostly silence by the
gathered financial executives, members of Congress and other assorted
non-nattering nabobs at the speech.
Economy Watch - One Year Later, No Agreement on Impact of Lehman
Sep 14, 2009
On the eve of the first anniversary of the Lehman Brothers Holdings
Inc. collapse, economists are busy doing what they do best--disagreeing
with each other about what it meant, and what has changed since then
(besides the fact that many people are poorer than they used to be) and
where things are headed from here.
Fitch: Obtaining Unsecured Debt Becoming Easier for US REITs
Sep 14, 2009
The grip of the credit crunch has been so tight that U.S. equity REITs
have found it nearly impossible to get their hands on unsecured
debt--until recently. As per a new report by Fitch Ratings, obtaining
unsecured debt is becoming less of a pipedream.
Economy Watch - Beige Book Offers a Little Optimism
Sep 10, 2009
The Federal Reserve's latest Beige Book, released on Wednesday, was
redolent with cautious optimism, a fairly common sentiment in this
fifth--sixth?--seventh? inning of the Great Recession (which could also
go into extra innings).
Mermelstein: Govt. Can Manage Soft Landing for Impending CRE Loan Problem
Sep 10, 2009
Edward Mermelstein is a real estate attorney and founder of Edward A.Mermelstein & Associates. He helps foreign and US entities find andpurchase real estate in the US and abroad. He is also the founder ofMermelstein Development – a subdivision of his firm engaging in theacquisition, ownerships, investment, management and development ofresidential, commercial, and mixed-use properties.
W.P. Carey Closes $120M in Debt for NYT Building
Sep 10, 2009
Reportedly, the credit crunch is beginning to ease, but frozen credit
market or no, fully leased premier properties are still managing to
attract lenders now and again. W. P. Carey & Co. L.L.C. is among
the lucky few borrowers. The investment firm and its CPA(R):16 - Global
and CPA(R):17 - Global REIT affiliates have just secured $119.8 million
in debt financing for its $225 million sale-leaseback deal involving
the New York Times Building in March of
this year.
Defaults on M-F Bank Loans on the Rise
Sep 09, 2009
Think increasing defaults on CMBS multifamily loans will be a problem? Defaults on bank loans may be of even bigger consequence in the near future.
Chandan: Default Rates Likely to Remain on Upslope
Sep 02, 2009
It appears things could get worse before they get better. For U.S.
banks holding commercial loans, the rate of commercial mortgages that
have fallen into default reached 2.88 percent in the second quarter, up
from the first quarter rate of 2.25 percent, according to new numbers
from research firm Real Estate Econometrics L.L.C.
Less Distress?
Sep 02, 2009
TALF – the Term Asset-Backed Securities Loan Facility – is the
government’s premier program to help liquefy the credit markets for
commercial real estate. Yet TALF and its cousin, PPIP – the
Public-Private Investment Program, address CMBS, not whole loans, which
are the bigger problem, at least in terms of outstanding debt. CMBS and
other securitized loans account for 21 percent of outstanding CRE debt
according to the Mortgage Bankers Association, while commercial banks,
which make whole loans, account for about 45 percent.
Lenders Are Alive - And Starting to Kick
Sep 02, 2009
The general consensus among market participants is that very few
lenders are actually lending and closing transactions these days.
However, while debt capital has been limited year-to-date, there are a
variety of options that remains for would-be borrowers--as well as
additional sources that recently started to gain traction.
Additionally, the last several months have seen increased liquidity and
improved pricing, which has proven positive for the debt markets.
Economy Watch - CRE Default Rate More Than Doubles Since Last Year
Sep 01, 2009
Rents and occupancies are down, meaning that commercial real estate
defaults are up--way up, according to Real Estate Econometrics L.L.C.
Such loans in default, that is more than 90 days past due, stood at
2.88 percent as of 2Q09, compared with 1.18 percent during the same
quarter last year. Both banks that hold commercial mortgages and CMBS
bondholders are suffering because of the swelling rate of defaults.
Economy Watch - More REIT IPOs Hatched
Aug 31, 2009
More REIT IPOs are in the works, with the filing of the necessary
documents with the Securities and Exchange Commission by Brookfield
Realty Trust and Marathon Real Estate Trust on Friday for entities that
will invest $500 million and $300 million in various kinds of debt.
Brookfield said it will use the money to originate and buy mortgage
loans, and mezzanine loans, and possibly CMBS. As for Marathon, it will
go shopping for MBS, mortgage loans and other real estate-related loans.
Economy Watch - GDP Shrinks, But Not by Much
Aug 28, 2009
The U.S. Department of Commerce offered yet another clue that, with any
luck, the panic and the recession will someday merely be bad memories.
According to Commerce, the U.S. GDP contracted at a 1 percent
annualized rate during 2Q09, less than expected. The rate was also
considerably less than the annualized rate of contraction seen in the
first quarter, 6.4 percent, and the rate of contraction during the
fourth quarter of 2008, 5.4 percent.
Economy Watch - Case-Shiller Index Sees Another Uptick
Aug 26, 2009
Is this the bottom? For sure? Everyone in the housing industry, and a
lot of other people besides, are probably asking that question after
the release of the latest S&P/Case-Shiller index report on Tuesday.
The index, which measures home prices in 20 major metro areas, ended
June up 1.4 percent, turning in a second monthly gain in a row. Prices
were up in 18 out of the 20 metro areas, and it was the second monthly
increase in the index since the mid-2006, just before the bubble popped.
$65M Loan for MU Complex a Vote for Quality
Aug 26, 2009
Some say the frozen credit markets are beginning to defrost a bit, but it in the case of the $64.7 million refinancing of Carillon Point in Kirkland, Wash., it was all about the premier quality of the mixed-use property. Acting on behalf of owner Carillon Properties, Newmark Realty Capital Inc. secured the loan from John Hancock Life Insurance Company for the 470,000-square-foot waterfront complex that sits just 10 miles northeast of Seattle.
Capital Markets Showing Some Signs of Life
Aug 25, 2009
Strong interest in public markets and the slow but steady return of
securitization provide some indicators that relief in the commercial
real estate market may be on the way, according to the latest capital
markets report by Cushman & Wakefield Sonnenblick-Goldman.
The Long Road Ahead
Aug 25, 2009
The finance market recovery is now under way, but the process will be slow.
Economy Watch - Is Delinquency Forever? Mostly, Says Fitch
Aug 25, 2009
The next big concern about the housing market might the concept of
delinquency cure rates, according to a new study by Fitch Ratings. The
cure rate is the percentage of delinquent prime loans returning to a
current payment status each month, and for most of this decade (2000 to
2006), the rate averaged about 45 percent.
TJAC Lands $23M Financing for Sydney M-F
Aug 24, 2009
The Boston office of Holliday Fenoglio Fowler L.P. has secured $23.73
million in financing on behalf of TJAC International for a multi-family
housing complex in Sydney, Australia.
Economy Watch: Existing Home Sales Spike
Aug 24, 2009
Sales of existing homes, which had been in the doldrums for quite a
while, have picked back up briskly, says the latest report. According
to the National Association of Realtors, sales spiked 7.2 percent in
July, to an annualized total of 5.24 million, the fourth monthly
increase this year. In the ten years that the association has been
tracking existing home sales, there has never been a larger monthly
increase.
Economy Watch - 2Q Mortgage Delinquencies Set Dubious Record
Aug 21, 2009
The Mortgage Bankers Association has been keeping track of residential
mortgage delinquencies (those more than 30 days late) and residential
foreclosures since 1972, and the percentage of delinquencies has never
been higher than it was during the second quarter of 2009. At the end
of 2Q09, the seasonally adjusted rate of mortgage delinquencies stood
at 9.24 percent, up 12 basis points from 1Q09, while the non-adjusted
rate is 8.86 percent, according to the MBA's most recent calculations,
released on Thursday.
Economy Watch - CRE Price Declines Slow
Aug 20, 2009
U.S. office, retail and apartment property prices fell 1 percent in
June, according to the Moody's/REAL Commercial Property Price Index
released on Wednesday. It's a decline, but as was quickly noted, not
very much of a decline when compared to this spring--which saw drops by
the index of 7.6 percent and 8.6 percent in May and April, respectively.
The Market’s Return
Aug 20, 2009
Before liquidity can return to the commercial real estate market, a couple of things have to happen: First, the banks need to start making money, and second, confidence needs to be re-established.
Q&A: Cushman & Wakefield's Gary Gabriel on the State of the Capital Markets
Aug 19, 2009
As small signs emerge hinting at an improvement in the economy, the
real estate market continues its struggle; billions of distressed
properties are in play and the credit market isn't budging all that
much. Gary Gabriel, executive vice president of real estate services
firm Cushman & Wakefield Inc.'s Capital Markets Group, spoke with CPE about the state of the capital markets and where we might go from here.
Fundamentals Continue to Buoy Seniors Sector as SHPT Closes $513M Financing
Aug 17, 2009
With more than 40 percent of the U.S. population currently aged 60 or
older, and the Baby Boomer generation nearing retirement age, the
seniors housing sector is set to benefit from these strong fundamentals
for some time to come. That positive outlook has allowed owners of
seniors housing to continue getting their hands on funding, despite the
sluggish lending market. Case in point: Senior Housing Properties
Trust's recently-closed $513 million credit facility through Citi and
Fannie Mae, the largest seniors financing deal so far this year.
Shunning Bankruptcy Rumors, Maguire Continues Disposition Program with Park Place Deal
Aug 12, 2009
General Growth Properties did it. Opus East and Opus South did it. More
than a few REITs have filed for bankruptcy due to ramifications of the
tumultuous economy and frozen credit market, but Maguire Properties
Inc. says that option is just not up for consideration. While shaking
its head at bankruptcy rumors, the financially troubled Los
Angeles-based REIT continues its non-core asset disposition program
with the completion of a deed in lieu transaction of the 1.7
million-square-foot Park Place I office property in Irvine, Calif.
Economic Update - Maguire Vows to Avoid Bankruptcy
Aug 11, 2009
The question of what to do with commercial buildings weighed down by
mid-2000s vintage securitized debt is one that's going to have to be
worked through building by building and loan by loan, it seems. But
there are going to be some bellwether cases, such as Maguire Properties
Inc., which is the process of relinquishing ownership of a portfolio of
prominent Los Angeles-area office buildings.
Multi-family Mortgage Originations Down 54 Percent from Same Time Last Year
Aug 07, 2009
Commercial and multi-family mortgage originations haven’t escaped the trickle down of the recession and the credit crunch, with volumes 54 percent below last year's second quarter and 83 percent below the peak seen in the second quarter of 2007, according to the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations.
Hypo Real Estate Reports $1B Loss
Aug 07, 2009
Hypo Real Estate Holding AG, the only German lender that has been nationalized, with a current 90 percent holding, reported a 750 million euro, or $1.1 billion, loss in the second quarter. And its chief executive predicted continued losses, with a return to profitability delayed until 2012, according to the Associated Press.
Highwoods Closes on $162M in Secured Loans
Aug 07, 2009
Highwoods Properties Inc. closed on two secured loans totaling $162 million, one a $115 million, six-and-a-half-year loan provided by New York Life Insurance Co. at a fixed rate of 6.875 percent, secured by a pool of 10 assets in Nashville, Raleigh and Tampa, and the other a $47.3 million, seven-year loan from Western-Southern Life Assurance Co. at a fixed rate of 7.5 percent, secured by the office portion of RBC Plaza in Raleigh. Highwoods used a portion of the proceeds to pay off in full the $91 million outstanding under its $450 million unsecured credit facility.
SL Green Lands $145M for Refinancing of NYC Office High-Rise
Aug 06, 2009
Flying in the face of the still chilly credit market, SL Green Realty
Corp. has managed to get its hands on a $145 million leasehold mortgage
for the refinancing of the 1.2-million-square-foot office tower at 420
Lexington Ave. in Midtown Manhattan.
Economic Update - Roundtable Survey Finds CRE in Poor Mood
Aug 06, 2009
The latest quarterly survey by the Real Estate Roundtable, released
Wednesday, found the commercial real estate sector in a funk, squeezed
by poor financing prospects, decreasing valuations and lower demand for
commercial real estate of all varieties.
Fitch Ratings: Large Hotels Defaulting on Loans at High Rate
Aug 05, 2009
As the commercial real estate market continues its downward decline, a
new Fitch Ratings report indicates that large hotels lead loans of
concern for U.S. CMBS with eight newly defaulted loans greater than
$100 million entering special servicing, according to Fitch’s 'What's
in Special Servicing' U.S. CMBS report.
Economic Update - MIT/CRE Index Takes Hit in 2Q09
Aug 05, 2009
Commercial real estate took a drubbing in the second quarter, according
to Massachusetts Institute of Technology Center for Real Estate, whose
index tracking commercial properties sold by institutional investors
dropped 18.1 percent during 2Q09. The index is down 32 percent from the
end of 2Q08, and 39 percent from its mid-2007 (that is, bubble) peak.
Economic Update - Disney Weighs in on the Economy
Jul 31, 2009
Is Disney a major lagging indicator for the U.S. economy? Maybe. In any
case, Walt Disney Co. CEO Robert Iger sounded like a central banker on
Thursday during the company's second-quarter conference call: "We do
see signs of economic stabilization, but the pace and strength of
recovery remain uncertain, and we are managing accordingly," he said.
Economic Update - Could Be Worse, Says Fed
Jul 30, 2009
The latest Beige Book from the Federal Reserve is out, and the
message is that the economy is still fairly bad, but not quite as bad
as it was, or could be. Employers are still laying workers off, but not
as quickly as before. Lenders are still reluctant to lend and borrowers
are still reluctant to borrow. but there's a modicum of activity.
Regarding real estate, some member banks--Atlanta, Cleveland, San
Francisco--reported rising real estate loan delinquencies.
$2.2T of Properties Currently at Risk, RCA Warns
Jul 30, 2009
There's a great deal of trouble on the horizon for a bevy of commercial
property owners faced with near-term refinancing needs--about $2.2
trillion in trouble, according to a new U.S. Capital Trends report by
global commercial real estate research firm Real Capital Analytics. The
practically inconceivable figure represents the properties purchased or
refinanced after early 2004 that have since experienced a decline in
value--a decline that will make the challenge of securing refinancing
in the inhospitable credit market all the more difficult.
Economic Update - Home Price Uptick? Sort Of
Jul 29, 2009
On the heels of news Monday that new home sales were up a little, home
prices inched up as well--at least, those measured by the Standard
& Poor's/Case-Shiller Home Price Index in its raw form. In May, the
index, which measures prices in 20 metropolitan areas, rose 0.5 percent
over April, following a 0.6 percent drop the month from March to April.
The movement is notable as the first time the index has moved up in
three years.
Fitch Finds High Delinquency Roll Rates Continue
Jul 28, 2009
Fifty-four percent of delinquent loans in Fitch Ratings-rated transactions moved from 30 days to 60 days between June and July, the ratings agency found. It was the 10th consecutive month that such movement measured above 50 percent, a situation that the agency views as an "important precursor in helping to anticipate future performance for CMBS delinquencies," it quoted managing director Mary MacNeill as saying. The majority of Fitch Loans of Concern do continue to perform, accounting for 14.8 percent of multiborrower fixed-rate deals and 28.8 percent of floating-rate deals, but the number is rising.
Economic Update - New Home Sales See Uptick
Jul 28, 2009
New single-family home sales recorded an uptick in June, increasing 11
percent compared with May, to an annualized rate of 384,000. It looks
like a little pent-up demand for new homes is being unleashed,
especially since prices are still falling. The Commerce Department also
reported that the median price for a new house stood at $206,200 in
June, down 12 percent from last June.
Economic Update - Four More Years for Bernanke?
Jul 27, 2009
Economist Nouriel Roubini, also known as Dr. Gloom (or is it Dr. Doom?)
for his voice-in-the-wilderness prediction of the soon-to-pop bubble
back during the bubble's expansion phase, opined in the New York Times
on Sunday that Federal Reserve chairman Ben Bernanke deserves another
term after his current one expires in January, crediting him with
"decisions [that] prevented the Great Recession of 2008-2009 from
turning into the Great Depression 2.0."
Economic Update - Housing Treads on the Bottom?
Jul 24, 2009
Could spring 2009 have been the housing bottom everyone has beenwaiting for since the pop of the bubble? Residential real estatespecialists hope so. According to the National Association of Realtors,U.S. existing home sales were up 3.6 percent in June to an annualizedrate of 4.89 million. That's more than economists were predicting, andthe most since October 2008.
Economic Update - Fed Paying Attention to CRE Time Bomb
Jul 23, 2009
Federal Reserve Chairman Ben Bernanke, wrapping up two days of
testimony to Congress on Wednesday, talked about a number of weighty
economic issues, including concerns about commercial real estate. The
ticking time bomb analogy didn't come up--pundits talk that way, not
central bankers--but the commercial real estate debt problem
nevertheless got a fair amount of attention.
Economic Update - Panning for Gold in CRE Debt
Jul 22, 2009
Federal Reserve Chairman Ben Bernanke, high oracle of the U.S. economy,
began two days of testimony before Congress on Tuesday, and said that
things will slowly get better, eventually. He also noted that he and
his banking brethren are watching developments in the commercial real
estate industry--that ticking time bomb--with all the attention that a
ticking time bomb deserves. Meanwhile, down in the trenches, there's a
gold rush of sorts going on to find profits in real estate debt.
Economic Update - Green Shoots a Little Greener, but CRE Not Overjoyed
Jul 21, 2009
It was a good way to start the week, economically speaking. According
to the Conference Board, the U.S. index of leading economic indicators
rose 0.7 percent in June, marking the third rise in the index in as
many months. In the first half of 2009, the index improved at an
annualized rate of some 4.1 percent , a clear contrast to the way it
shrank in the last half of 2008 at an annualized rate of 6.2 percent.
ProLogis Continues to Pay Down Debt, Remains Active in Chicago
Jul 21, 2009
Like all commercial property players, industrial REIT ProLogis has had
to deal with the challenges of the sagging economy and sluggish leasing
market. Despite the tumultuous environment though, the firm is still
getting deals done—including some very sizable transactions, like a
250,000-square-foot lease the firm recently inked with Roosevelt Paper
Co. near Chicago. That deal was the largest splash made by ProLogis in the region during
the second quarter, during which it racked up a total of nearly 600,000
square feet in leases.
Boston Office Lands $25M in Financing
Jul 21, 2009
The Boston office of Holliday Fenoglio Fowler L.P has secured $25
million in financing for 101 Merrimac Street, a 10-story,
159,000-square-foot Class A office building in Boston.
JLL: Hotel Market Conditions Remain Murky
Jul 20, 2009
Even as more and more preconditions of a global economic recovery are
being met, the path toward a commercial property market rebound is
uneven and yielding divergent regional trends. Occupancy, ADR, property
values, transaction pricing levels, and debt availability are all
showing evidence of this uncertainty, according to a new report by
Jones Lang LaSalle.
Economic Update: Retailers Term CIT Too Big to Fail; TALF Attracts Interest
Jul 17, 2009
As if the retail industry didn't have enough trouble, the prospect of a
CIT Group bankruptcy is blowing through the industry like an unexpected
squall. On Thursday, those new worries were reflected in the S&P
Retail Index, which fell 0.8 percent. If CIT does go under, many
smaller and mid-sized apparel retailers might also have trouble staying
afloat later this year, especially during the critical holiday season.
Despite Improvements, Negative Overall Outlook for U.S. Equity REITs
Jul 16, 2009
The slightly less hostile financial market during the second quarter
cracked open the window for many equity REITs to begin making a bit of
progress in easing monetary woes, but according to Fitch Ratings' new
REIT Report Quarterly, a few significant obstacles continue to encumber
the sector.
Prudential Executives See More Pain but Some Improvements
Jul 16, 2009
With unemployment still rising, Prudential executives expect more pain
to come for the commercial real estate market, but they also see some
signs of better health, according to their assessment of the industry
during yesterday’s mid-year commercial real estate outlook.
HUD Revises Program to Insure Pure Refinancing Loans for Hospitals
Jul 14, 2009
Acting through the Federal Housing Administration, the U.S. Department
of Housing and Urban Development is stepping up its efforts to assist
hospitals seeking refinancing at a time when private lenders remain
oh-so wary and tight-fisted. With the amendment of the Section 242
Mortgage Insurance Program for Hospitals, which previously included a
construction-element requirement, FHA will offer mortgage loan
insurance for pure refinancing deals.
Ginnie Mae Issues $43B in MBS in June
Jul 14, 2009
The Government National Mortgage Association (Ginnie Mae) issued more
than $43 billion in mortgage-backed securities in June, marking the
first time the agency has broken the $40 billion barrier in a single
month.
PA Office Lands $52M Refi
Jul 10, 2009
Capmark has originated $52.5 million for a partnership equity
recapitalization and refinance of an existing loan for a
345,000-square-foot office tower in Conshohocken, Pa.
Opus Group Bankruptcy Filings Mount
Jul 09, 2009
The struggling economy is making its mark on Minnetonka, Minn.,-based
Opus Group which now has a number of its subsidiaries filing for
bankruptcy. So far, Opus West Corp. and Opus South Corp. have filed
Chapter 11 bankruptcy. Opus East, meanwhile, has filed Chapter 7.
Austin’s Hill Country Galleria, developed by Opus West, filed for
Chapter 11, too.
GE Capital-Angelo, Gordon Partnership Pre-Qualifies for PPIP
Jul 09, 2009
GE Capital Corp. and Angelo, Gordon & Co. have been selected as a pre-qualified fund manager for the U.S. Treasury Department's Legacy Securities Public-Private Investment Program. GE Capital Real Estate will oversee GE Capital's role in the partnership, which also has a strategic relationship with CastleOak Securities and Park Madison Partners. The partnership is one of nine fund managers with the pre-qualification.
Economic Update - Loan Delinquencies Edge Ever Upward
Jul 08, 2009
It's an age of loan delinquency. According to a report released Tuesday
by the American Bankers Association, delinquencies on consumer debt --
those debt holders more than 30 days late -- stood at a record 3.23
percent during 1Q09. That's only up a little from 4Q08, yet still the
highest rate since the organization began tracking such things in 1974.
Retailers Caught in Limbo as Sale-Leasebacks Bring in Fewer Dollars
Jul 07, 2009
Beset by a still-icy lending climate, as well as continued weak
fundamentals as a result of the global economic slump, cash-strapped retailers are
increasingly finding themselves caught between a rock and a hard place
when it comes to monetizing their real estate holdings via sale
leaseback deals.
Looking to Re-Enter Investment Market, Steelbridge Hires Cushman Vet Caplin
Jul 07, 2009
Steelbridge Capital has tapped Jay Caplin, formerly executive director
of Cushman & Wakefield Inc.’s capital markets group, as managing
principal. In his new role, Caplin will play a major role in
Florida-based Steelbridge’s return to active investment in commercial
property market—a game the firm stayed out of in recent years of sky
high pricings and cap rate compression.
Economic Update - Home Sellers, Appraisers Quarrel Over Valuations
Jul 06, 2009
Writing in the Wall Street Journal late last week, Stan
Liebowitz noted that "the evidence from a huge national database
containing millions of individual loans strongly suggests that the
single most important factor [in foreclosures] is whether the homeowner
has negative equity in a house..." Blaming subprime mortgage lending
for the current housing crisis, he asserted, misses the point.
HUD Awards Over $1B in Recovery Act Funds to Jump Start Affordable Housing Construction
Jul 02, 2009
The U.S. Department of Housing and Urban Development is approving plans submitted by state housing finance agencies for $1 billion to jump start affordable housing programs in states throughout the country that are currently stalled due to the economic recession. Funded through the American Recovery and Reinvestment Act of 2009, HUD's new Tax Credit Assistance Program will allow 26 state housing finance agencies to resume funding of affordable rental housing projects across the nation while stimulating employment in the hard-hit construction trades.
Economic Update - ProLogis Sells in Big Way to Deleverage
Jul 01, 2009
The difficult year 2009 is half over, and recent deals by one of the
world's largest landlords show two things about the current climate.
First, deleveraging is in. Second, there are buyers out there to help
sellers who want to raise some cash to do that deleveraging.
Research Facility in Boston's Healthy Life Science Market Attracts $350M Loan
Jul 01, 2009
Flying in the face of the frosty credit market, BioMed Realty Trust
Inc. has just gotten its hands on a $350 million loan secured by its
successful new 700,000-square-foot Center for Life Science | Boston.
John Hancock Life Insurance Co., TIAA-CREF, and Westdeutsche
ImmobilienBank AG stepped up to the plate to provide the financing.
With Fannie, Freddie Still Active, DC-Area Portfolio Fetches $79M in Financing
Jun 30, 2009
Throughout the credit crisis and their own internal financial trials,government-sponsored enterprises Fannie Mae and Freddie Mac have continued to steadily dole out loans in the multi-family market, and The Cafritz Cos. is among the latest firms to take advantage of the entities' willingness to lend. Cafritz has just secured $79.2million in permanent financing for a five-property portfolio in Metropolitan Washington, D.C., relying on Fannie Mae's multi-family lending programthrough M&T Realty Capital Corp.
Downtown Miami Condo Market Showing Signs of Life--Contrary to Popular Opinion
Jun 29, 2009
Rumors of the Downtown Miami condominium market's death have beengreatly exaggerated. The Miami Downtown Development Authority recentlycommissioned the Residential Closings & Occupancy Study, whichindicates that industry talk about the area's stock of new condos beingcovered in cobwebs--or predominantly empty--may not be totallyaccurate.
Q&A with Steve Bram: Shortfall of Supply When Recession Ends in 2011
Jun 26, 2009
Steve Bram is president & co-founder of George Smith Partners Inc. An expert on multi-family finance, he has personally arranged over $2.5 billion of financing in over 150 transactions during his 25 years at George Smith, including all types of construction, bridge and permanent financing on commercial and residential properties along with joint venture and equity placements. He recently spoke with CPN’s sister magazine Multi-Housing News about what lies ahead for the multi-family market.
California M-F Scores $18M in Financing
Jun 26, 2009
Ory Schwartz, senior director of NorthMarq Capital’s Los Angeles
office, has arranged an $18 million first mortgage for Meadowridge
Apartments, a 176-unit multi-family complex located in Santa Clarita,
Calif.
Economic Update - CRE Still Faces Stress, Distress
Jun 26, 2009
Not-quite-so-bad news still passes for good news: the U.S. Department
of Commerce has revised its estimate of the annualized contraction of
the American economy in the first quarter of 2009 to 5.5 percent,
instead of the 5.7 percent previously estimated. Still, paired with the
4Q08 annualized contraction of 6.3 percent, the six months between last
October and this March represent the poorest economic performance for
the U.S. economy in over a half century.
Extra Space, Harrison Street to Form $213M Storage JV
Jun 25, 2009
Extra Space Storage Inc. has entered into a definitive agreement to
contribute 42 of its wholly-owned properties into a newly formed joint
venture with an affiliate of Harrison Street Real Estate Capital L.L.C.
Philly Shopping Center Lands $17M in Financing
Jun 24, 2009
The New Jersey office of Holliday Fenoglio Fowler L.P. has secured $17
million in financing for Columbus Crossing, a 142,000-square-foot,
grocery-anchored shopping center in Philadelphia.
Economic Update - Homebuyers Slowly Returning to Existing Home Market
Jun 24, 2009
Homebuyers seem to be returning to the existing-home market this summer, according to the latest report by the National Association of Realtors on existing U.S. housing sales. The sales of single-family homes, condos and coops rose 2.4 percent in May compared with April, coming on top of a gain for that month compared with March, thus marking the first back-to-back monthly increase in existing home sales since 2005.
Economic Update - Housing Reports See Short-Term Funk, Long-Term Hope
Jun 23, 2009
The residential refinancing boom that budded so promisingly in the spring has wilted, according to the latest predictions by the Mortgage Bankers Association. Back in March, the organization predicted refi activity to the tune of about $2.75 trillion nationwide by the end of 2009, spurred by historically low interest rates. Now that those low rates have evaporated, MBA says that total originations for the year will probably come in just above $2 trillion.
MBA: Outstanding Mortgage Debt Remains Unchanged in First Quarter
Jun 19, 2009
The level of commercial mortgage debt outstanding remained relatively unchanged in the first quarter, at $3.48 trillion, according to the Mortgage Bankers Association analysis of the Federal Reserve Board Flow of Funds data. The $3.48 trillion in commercial/multi-family mortgage debt outstanding recorded by the Federal Reserve was a decrease of $33 million from the fourth quarter of 2008. Multi-family mortgage debt outstanding grew to $908 billion, an increase of $5 billion, or 0.6 percent from the fourth quarter.
Economic Update - Obama Unveils Financial Overhaul Plan
Jun 18, 2009
Responding to the economic crisis facing the United States, President Obama has proposed vast regulatory changes, including the creation of a new consumer agency aimed at guarding against the kinds of lending abuses which resulted in many Americans being saddled with far more mortgage debt than they could handle.
Economic Update - Recovery or Continued Slowdown?
Jun 17, 2009
Is the economy picking up or continuing to struggle? It seems to depend upon who you talk to and when you talk to them. While many reports gave a variety of accounts Tuesday, most supported bets that the pace of the recession is slowing.
In Stalled Development Market, New Firm Aims to Help Banks with Non-Performing Loans
Jun 17, 2009
With development projects stalled across sectors, the need to deal with loans that have gone bad is one of the few growing niches of the commercial property industry. To that end, Diversified Properties has formed a partnership with industry veteran Jonathan Stein to form Diversified Realty Advisors, a real estate advisory and turnaround group providing lenders with interim portfolio or individual asset management services during the workout or foreclosure stage, as well as long-term strategies such as asset and construction management, acquisition support and disposition services.
Extended Stay Files for Bankruptcy
Jun 16, 2009
The sluggish travel industry has claimed another victim, as Extended Stay Hotels, an operator of mid-priced, extended-stay hotels in the United States and Canada, has filed for bankruptcy.
New Owner of Atlantic City's Tropicana Somewhat of a Surprise
Jun 16, 2009
Tropicana Atlantic City Casino & Resort is set to come under new ownership, just over one year after owner Tropicana Entertainment L.L.C. filed for Chapter 11 protection. But it's not a big-name gaming company that will take over the property's reigns. The United States Bankruptcy Court in Camden, N.J., has green-lighted a "stalking horse" asset purchase agreement calling for pre-petition lenders--a group that includes billionaire investor Carl Icahn's Icahn Capital--to take hold of the asset in return for forgiving $200 million of debt owed by Tropicana.
New Owner of Atlantic City's Tropicana Somewhat of a Surprise
Jun 16, 2009
Tropicana Atlantic City Casino & Resort is set to come under new ownership, just over one year after owner Tropicana Entertainment L.L.C. filed for Chapter 11 protection. But it's not a big-name gaming company that will take over the property's reigns. The United States Bankruptcy Court in Camden, N.J., has green-lighted a "stalking horse" asset purchase agreement calling for pre-petition lenders--a group that includes billionaire investor Carl Icahn's Icahn Capital--to take hold of the asset in return for forgiving $200 million of debt owed by Tropicana.
New Firm Aims to Help M-F Industry Weather Storm
Jun 15, 2009
In the apartment market, job losses are starting to exact a high cost in terms of declining rents and rising occupancy levels, and for holders of multi-family debt and equity, there's more bad news on the horizon as loan maturities on overvalued assets begin to take hold over the next few years. In an effort to assist those facing the impending challenges, two industry veterans have just launched apartment consulting firm Caldera Asset Management, based out of Denver and Atlanta.
CRE Investment Finance's Sea Change
Jun 12, 2009
It's been nearly two years since the lending market for commercial real estate investment began to freeze up--first a freeze, then a full-stop for a short period in the dark days of the fall of 2008, then a "new normal" of sluggish lending, tough underwriting standards and all-around financial miasma. No one knows how long the new normal is going to last, or whether it represents a pendulum that's moved too far away from the days of easy lending that will someday swing a little ways back.
Portland Office Complex Lands $38M Recap
Jun 11, 2009
The Portland office of Holliday Fenoglio Fowler L.P. has
arranged a $38 million recapitalization of The 1000 Broadway Building, a
268,600-square-foot, Class A office tower in Portland, Ore.
Economic Update - CRE Defaults Head for High Ground
Jun 10, 2009
A new report by Real Estate Econometrics, based on FDIC data, puts thecommercial real estate loan default rate at its highest level in morethan a decade and a half, at least those loans held by regulateddeposit-taking institutions—banks and thrifts, for the most part. Thedefault rate soared from 1.62 percent in the last quarter of 2008 to2.25 percent in the first quarter of 2009. That rate doesn’t includedefaults on loans associated with multi-family rental properties, whichReal Estate Econometrics put at 2.45 percent in the first quarter of2009, up 68 basis points from the previous quarter.
Filene's Basement Assets Snapped Up by Men's Wearhouse in $67M Auction
Jun 09, 2009
Clothing retailer Men's Wearhouse has emerged victorious from a
feverish nine-hour auction of assets belonging to off-price chain
Filene's Basement, which fell victim to the retail market's downward
spiral and filed for Chapter 11 bankruptcy protection in early May,
just two weeks after its purchase by Buxbaum Group affiliate FB
Acquisition II. Acting through its affiliate, K&G Acquisition
Corp., Men's Wearhouse put forth the winning bid of $67 million for 17
to 20 of Filene's store leases, as well as the leases on the company's
Massachusetts corporate headquarters and distribution center, its
Maryland storage facility and-- possibly most important--the Filene's
Basement trade name.
Economic Update - Fast-Track Chrysler Reorganization Stalls
Jun 09, 2009
The Chrysler reorganization and sale to Fiat, which
was to have been a model of a quick turn-around, has hit a snag in the
form of a court order by U.S. Supreme Court Associate Justice Ruth
Bader Ginsburg. Pension funds that hold some of Chrysler’s secured loan
are objecting to the goings-on, claiming it isn’t fair to them, and so
petitioned Justice Ginsburg for the measure. It isn’t clear how long
the temporary stay will delay the sale, or whether it will kill the
sale, or whether the full court will reverse the stay in a few days.
It’s unlikely, though, that the legal wrangling will affect the fate of
the Chrysler dealerships slated for closing, or change the amount of
real estate their closing will put on the market.
Amid Continuing Market Decline, First Industrial Nabs $154M in Financing
Jun 08, 2009
Despite the ongoing weakening of industrial market fundamentals, banks are warming up to certain players like First Industrial Realty Trust Inc., which has just managed to get its hands on $154 million in the form of three loans secured by assets encompassing a total of 6.3 million square feet.
Economic Update - Mortgage Rate Worries Weigh on Housing Market
Jun 05, 2009
General Motors was in the news over the weekend before the largest bankruptcy in U.S. history (that is, its own), but more worrying for many policymakers, economists and ordinary borrowers is last week's sudden spike in mortgage interest rates.
CRE Mortgage Starts Plummeted in '08: MBA
Jun 05, 2009
After seeing phenomenal commercial mortgage originations in 2006 and 2007, figures from 2008 show a 65 percent decrease in volume, according to the Mortgage Bankers Association's 2008 commercial real estate/multi-family finance report.
Lack of Leverage Lends Strength, REIT Week Panel Maintains
Jun 05, 2009
The bad news is, the United States is in a Great Recession and the commercial real estate market is likely to feel continued pain during the next two years as corporate cutbacks result in weaker fundamentals. The good news is, the public equity markets have been improving in the past few months, with returns bouncing back substantially and multiples back down to more reasonable levels as the market has responded to REIT success at raising capital through secondary offerings.
M-F Mortgage Delinquencies Increase in Q1, Says MBA
Jun 03, 2009
The weakening economy and continued credit crunch led to increases incommercial/multifamily mortgage delinquencies during the first quarter of 2009, according to the latest Commercial/Multifamily DelinquencyReport, released by the Mortgage Bankers Association.
Financing Keeps Rolling in for Colonial
Jun 02, 2009
Despite the fact that widespread job losses have begun to take a toll
on the multi-family market, owners of this asset type are still able to
secure financing in what remains a frigid lending environment. Just
three months after having wrapped up a $350 million secured credit
facility, Colonial Properties Trust has landed another major financing
deal with the closing of a new $156.4 million secured credit facility.
Economic Update - Mortgage Rate Worries Weigh on Housing Market
Jun 01, 2009
General Motors was in the news over the weekend before the largest
bankruptcy in U.S. history (that is, its own), but more worrying for
many policymakers, economists and ordinary borrowers is last week's
sudden spike in mortgage interest rates.
Economic Update - Foreclosures Spike Among Prime-Mortgage Holders
May 29, 2009
The tsunami of residential foreclosures may have started, back in the
days of easy mortgage money, with borrowers whose only qualification
was being able to fog a mirror. About half of those kinds of subprime
mortgages have resulted in a foreclosure outcome, and Alt-A-inspired
foreclosures are spiking too. But now, according to the Mortgage
Bankers Association, foreclosures on prime fixed-rate loans represent
the largest share of brand-new foreclosures.
As Condo Market Remains Tight, Miami Tower Scores Key Fannie Approval
May 27, 2009
In the midst of the sluggish economy and tight credit market, condominium developers are having a tough time selling units. As a result, many projects across the nation have been reverted to rental or stalled outright. But in the midst of one of the most hard-hit condo markets--South Florida--at least one developer is breathing a bit easier.
Fitch: General Growth Chapter 11 Ruling a Mixed Blessing for Bondholders
May 26, 2009
The special-purpose entity structure that has helped to power real
estate finance in recent years remains intact after recent court
decisions tied to the General Growth Properties Inc. Chapter 11
bankruptcy filing. However, the rulings may turn out to be less than a
total victory for bondholders in the long run.
JBS, Buvermo Nab $32M in Financing for D.C. Office
May 21, 2009
The JBG Cos. and Buvermo Properties Inc. have secured $32 million in financing for One Choke Cherry, a Class A office building fully-leased to the Government Services Administration in North Rockville, Md.
Stimulus Programs, Financial Market Intervention to Benefit CRE--But Not Right Away
May 19, 2009
The government's pumping up of the economy via various programs created by the nearly $800 billion economic stimulus package and interceding in the financial market will indirectly incite the revival of the commercial real estate market, according to a new report by Marcus & Millichap Real Estate Investment Services. But the major impact is unlikely to be felt this year.
Strong D.C. Fundamentals Help Attract $104M Office Financing
May 14, 2009
Washington, D.C., is feeling the effects of the economic slump, but the area office market remains attractive enough to help reel in lenders willing to part with the big bucks. Perseus Realty L.L.C., with the assistance of affiliate Perseus Realty Capital L.L.C., has obtained $103.5 million in financing for its 309,500-square-foot Class A office property at 1110 Vermont Ave. N.W. in D.C.'s Central Business District.
With Pool of Distressed Assets on the Rise, A10 Kicks Off $100M Lending Program
May 11, 2009
The number of distressed assets continues to grow and lenders across
the country have been debuting new programs and establishing funds to
provide loans for owners and buyers of these troubled assets in a
climate where securing financing has become a monumental challenge.
Now, Boise, Idaho-based A10 Capital has jumped on the bandwagon with
$100 million in capital for the origination of first mortgage
commercial real estate loans and the supplying of financing for
commercial real estate-secured distressed debt acquisitions through its
new Lending Group.
Economic Update - Smaller Banks Face CRE Woes
May 07, 2009
On Wednesday, the eve of the stress test results, observers were
wondering just how much trouble sour commercial real estate loans are
going to cause those banks that hold them. Knee deep, waist deep, or up
to their eyeballs?
CMBS Sector Sees Jump in Special Servicing Loans
May 04, 2009
CMBS loan delinquencies and defaults are pushing up special servicing
volume at a blistering pace, according to a pair of first-quarter
updates published last week by Fitch Ratings.
Economic Update - Credit Woes Put Kibosh on $2.5B Midway Deal
Apr 21, 2009
Citi Infrastructure Investors--a joint venture of Citigroup Inc., John Hancock Life Insurance Co. and Vancouver Airport Services-- will be unable to go through with a deal that would have seen the group buy Midway International Airport in Chicago for $2.5 billion. After previous extensions, the City of Chicago decided not to give the group any more time to close on the deal.
A Word With ... Dale Anne Reiss
Apr 15, 2009
CPN Editor-in-chief Suzann D. Silverman spoke with Dale Anne
Reiss, who retired last June after 10 years as global director and more
than a decade more as a managing partner in Ernst & Young L.L.P.’s
real estate, hospitality and construction services practice. She
recently formed her own consulting firm, Artemis Advisors L.L.C. Now a
consultant for Ernst & Young, she last month also retained DLA
Piper as a client.
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