What I’m Reading
Cashing Out: A new report by Trepp indicates an opportunity for homeowners to use sale-leaseback structures to pull equity out of their homes without having to move. This would allow equity-rich but cash-poor home owners who have been hit by the pandemic-induced recession a way to avoid foreclosure without having to upend their lives by moving. As you can imagine, the big players in the single family rental space are licking their chops. Trepp
Stuck at Home: A new survey from TopResume found that a staggering one in five working parents is considering leaving the workforce to manage homeschooling, remote learning or one of the other new educational arrangements that have formed in an effort to address the pandemic. Bisnow
Sign of the Times: A startup called Civvl is recruiting freelancers to sign up as eviction crews for landlords with a business plan that has been described as “the Uber of evictions.” It probably goes without saying but this startup represents the nuclear version of bad optics. Business Insider
Ghost Town: Approximately one in ten Manhattan office workers have returned since COVID 19 hit, hurting local businesses. Wall Street Journal Related: Almost 90% of NYC bars and restaurants couldn’t pay their full August rent. NY Post
Throwing in the Towel: Brookfield Property Partners ’ recent move to slash staff shows how the firm’s big bet on repurposing shopping malls is slamming into unanticipated challenges during the coronavirus pandemic. Instead, the real estate giant is looking to sell of some of its portfolio more quickly than initially planned. Wall Street Journal
Chart of the Day
Hospitality and retail have made up a dominant share of newly troubled assets so far this year. I expect office to begin creeping up in this report in the coming quarters.
Source: Real Capital Analytics
WTF
Overdose: A Massachusetts construction worker’s love of black licorice wound up costing him his life. Eating a bag and a half every day for a few weeks threw his nutrients out of whack and caused the 54-year-old man’s heart to stop. On the plus side, at least he died doing what he loved. Associated Press
Settled: An argument over whether almond milk or whole milk was the superior milk turned violent when a man (allegedly) slashed his cousin with a pocket knife because Florida (h/t Steve Sims). No word yet on who actually won the argument. The Smoking Gun
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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