Starwood Single-Family Rental Firm Stung by Housing Market Slump
Many landlords are still bullish on rental homes. They generally aim to hold onto properties for a longer length of time than other buyers, which can help insulate them from the price corrections that...
View ArticleTrump, Vornado-Owned San Francisco Buildings Land on Watchlist
Higher rates have ramped up the pressure on commercial landlords, causing extensions to become costlier. Debt service costs for the San Francisco properties have increased 38% since the loan’s...
View ArticleTax Considerations Relating to Debt for Distressed CRE Owners
In addition to analyzing the economics of a distressed position, real estate owners must consider the tax implications of the various outcomes surrounding debt. In the worst-case scenario of a...
View ArticlePimco-Owned Office Landlord Defaults on $1.7 Billion Mortgage
The buildings — in San Francisco, New York, Boston and Jersey City, New Jersey — are owned by Columbia Property Trust.
View ArticleTwo Office Landlords Defaulting May Be Just the Beginning
Many office landlords are seeing borrowing costs skyrocket, leading owners to default on mortgages.
View ArticleBlackstone Defaults on €531 Million Nordic Property CMBS
The private equity firm had sought an extension from holders of the securitized notes to allow time to dispose of assets and repay the debt, according to people with knowledge of the plan. Market...
View ArticleRescue Capital: Staying Afloat Amid Uncertainty in the Real Estate Market
Rescue capital is a more efficient and cost-effective way to recapitalize a real estate asset. Distressed situations can often be remedied without any further action being necessary.
View ArticleAmerican Dream Mall Owes NJ Town $8 Million, Lawsuit Says
American Dream’s owner Triple Five Group agreed to make the payments in lieu of real estate taxes to the borough of East Rutherford on land surrounding the mall in exchange for rights to build a hotel,...
View ArticleDistressed and Opportunistic CRE Funds: Explained
What’s the difference between the two types of funds in terms of strategy, targeted returns and investment horizons.
View ArticleA Hedge Fund Trader Gained 119% Betting Against Malls. Now He’s Targeting...
A large number of older offices will fail to lure back workers in the post-Covid era, making them less attractive to occupiers and spurring a wave of defaults, according to Daniel McNamara, founder of...
View ArticleInvestors Bide Their Time Waiting for Distressed Apartment Deals
Some highly-leveraged investors who bought at the market peak are running out of time and may be forced to sell.
View ArticleInvestors Pile Into European Property Debt as Banks Bail on Landlords
Banks are being compelled to pull back from real estate lending in the face of falling values and the imminent introduction of new Basel III rules that introduce a minimum capital floor.
View ArticleBanking’s Next Threat? It Might Be Commercial Real Estate
If the saga at Silicon Valley Bank hastens the arrival of the next recession, expect to see many more properties go into default sooner rather than later. This is bad news for lenders because they have...
View Article11 Takeaways from MSCI Real Assets’ February 2023 U.S. Capital Trends Report
Recent MSCI data shows trouble brewing in the capital markets even before this month’s bank failures.
View ArticleGlobal Creditors Face Long Fight with China Developers for Cash
A plan unveiled last week by China Evergrande Group has raised concerns that investors may have to wait for years to get their money back. Under one of the options, the biggest Chinese builder to...
View ArticleHow Much Strain Is the Commercial Real Estate Market Showing? It's a...
MSCI’s Jim Costello and Alexis Maltin warn that while a failure on the scale of the Great Financial Crisis is unlikely, there are signs that trouble may be brewing for real estate investors with...
View ArticleECB Warns of Risks Posed By €1 Trillion Real Estate Funds
The net asset value of the real estate investment funds more than tripled to more than €1 trillion ($1.1 trillion) in the past 10 years, boosting their interdependence with property markets, the ECB...
View ArticleAre Offices Truly Worth as Little as REITs Imply?
How bad can it get? Private and public markets disagree to a jarring extent, and the truth is probably somewhere in the middle.
View ArticleAre Signature Bank’s Real Estate Loans Too “Toxic” to Attract Buyers?
During the three-year period spanning 2020 to 2022, Signature Bank issued $13.4 billion in loans on New York City buildings, according to property research company PincusCo. No other bank issued more...
View ArticleBlackRock to Sell $114 Billion of Failed Banks’ Securities
The firm will conduct sales of $27 billion in securities from Signature and $87 billion from SVB Financial Group’s Silicon Valley Bank, the Federal Deposit Insurance Corp. said in a statement...
View ArticleWeWork Venture Defaults on Loan for San Francisco Office Tower
The $240 million loan was for a building at 600 California St. that is owned by funds managed by a venture formed by WeWork and Rhone in 2019 to buy and oversee real estate. The property, which...
View ArticleDespite Panicked Headlines, Banks Continue to Finance Commercial Real Estate...
Lending terms might have tightened, and deals are being scrutinized more closely, but the capital is there.
View ArticleInstitutional Investors Still Like Real Estate, But Are Waiting for Better...
Some of the bigger players are still making deals. But the majority are waiting for market dislocation to work itself out so they can take advantage of the resulting bargains.
View ArticleReal Estate Debt Funds Aim to Be Players on Opportunistic, Distressed Strategies
The path is paved for real estate debt funds to get into the mix with more opportunistic plays, including in the office sector.
View ArticleIn the Current Environment, Property Owners Should Address Any Capital Needs...
We strongly encourage property owners and operators to proactively engage in capital market discussions well in advance of imminent capital needs.
View ArticleHow Lenders are Dealing with Distressed Commercial Real Estate So Far
As the amount of troubled loans mounts, real estate lenders are revisiting strategies from the Great Recession to avoid taking back the keys on some assets.
View ArticleDo the Sales of Two Big Real Estate Loan Portfolios Signal a Thawing Market?
Opportunistic investors have snapped up loan portfolios in some of the first moves attempting to capitalize on distressed real estate.
View ArticleWhat Are the Options for Real Estate Owners Facing Loan Defaults
Owners facing challenges today have several restructuring options, but it's critical to get guidance.
View ArticleNew Generation of Capital Providers Is Helping Syndicators Weather Today’s Storm
Among the hardest hit real estate market participants are syndicators of over-leveraged investments with debt at floating rates.
View ArticleHow One Major Bank Plans to Grow its Real Estate Lending Market Share as...
TD Bank’s newly appointed head of U.S. commercial real estate Hugh Allen notes the old adage: “You make your best loans in difficult times.”
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