What I’m Reading Swept Under the Rug: October marked the fourth straight month that the overall lodging delinquency rate has fallen, according to Trepp. Unfortunately, this isn’t due to improved property performance but rather granted forbearance that is allowing loans to “current” status. Globe Street See Also: A new survey of American Hotel &...
November 19th – Ringing the Bell
One Big Thing The Fed is now in a tricky spot when it comes to their massive mortgage bond buying program (emphasis mine): All of this serves to squeeze mortgage-bond investors in higher-rate securities. Most of them bought the debt at a premium, and the constant reduction in lending rates leaves...
November 18th – Back in Line
First, Some Corporate News: RanchHarbor closed on our second deal since launching. This one is a sale-leaseback industrial portfolio in San Diego that was purchased in a joint venture with Stos Partners. Really excited to get another one in the books that will provide a solid yield for our investors. ...
November 17th – What Lies Ahead
One Big Thing There has been a lot of COVID news to digest in recent days so I thought it would be helpful to put together a quick summary of what is going on. On the infection side, things are undeniably bad and getting worse. We have now seen over 11...
November 16th – Such a Tangled Web
What I’m Reading Tangled Web: As malls continue to struggle, their financing structures – which have only grown more complex over time – are making restructuring particularly challenging. This is perhaps the biggest downside of using CMBS, especially when layered with other forms of financing. When you borrow from a bank...
November 13th – Pile Up
What I’m Reading Pile Up: Corporate tenants put a record 42 million square feet of space on the office market in the second and third quarters, according to data firm CoStar Group Inc. That increased the total sublease space in the U.S. to roughly 157 million square feet, or 1.7% of...
November 12th – Canary in the Coal Mine
What I’m Reading Canary in the Coalmine: Office REITs have underperformed dramatically this year but their beat-down shares may be a good under-the-radar way to play the vaccine trade. However, upside may be capped by behavioral headwinds. P.S. Shouldn’t need to say it but this is IN NO WAY investment advice. MSN...
November 11th – Changing of the Guard
What I’m Reading Changing of the Guard: Office, hospitality and retail, three of real estate’s most institutionalized sectors, are facing long-term structural headwinds. At the same time, formerly-niche sectors like cold storage, self-storage, medical office and data centers are getting more institutional attention thanks to their resiliency in the face of...