What I'm Reading Wanna Get Away? Demand for second homes increased far more than for primary homes between January 2020 and January 2021, according to a Redfin analysis of mortgage application data from Optimal Blue, a real estate analytics firm. If ever there were an indication of K-shaped recovery, this...
March 19th – Tick Tock
What I'm Reading Tick Tock: Multifamily forbearance for agency borrowers has been extended through June 30, 2021 after having been set to expire on May 31st. Once the forbearance period ends, owners generally have to start repaying the deferred amount immediately and within 12 months, and while some owners have...
March 18th – Liquid Diet
One Big Thing Interesting story in Globe Street early this week about ReadyCap providing $104MM in construction-to-bridge financing on a new 200 unit apartment building in San Francisco. The project had apparently been behind on leasing thanks to COVID and therefore not able to obtain permanent financing when the construction...
March 16th – My Way or the Highway
What I'm Reading My Way or the Highway: The Kushner Companies declined to oppose its lenders’ bid to appoint a receiver to take control of a deeply distressed Times Square entertainment retail property that it purchased for $295.3MM back in 2015. The decline in value here is eye popping to...
March 15th – Piggy Bank
What I'm Reading Piggy Bank: Cash out refinances have hit their highest level since the financial crisis as homeowners take advantage of low rates. Cash out transactions were muted over the past decade in the wake of the Great Recession but came back with a vengeance in 2020 as mortgage...
March 12th – Stressing Out
What I'm Reading Stressing Out: Fitch Ratings published a stress test that concluded, in a worst case scenario, office values could fall 50% if remote work sticks. Fitch ran various stress scenarios ranging from moderate to severe to determine how telework would impact demand, rent and net cash flow on...
March 3rd – Short Term Bet
What I'm Reading Short Term Bet: As thousands of retail leases come up for renewal, their duration is increasingly shrinking, as businesses grapple with an unpredictable future and look for ways to slash costs, stay flexible and maintain leverage over their landlords, even after the health crisis abates. If the...
March 2nd – Backroom Deal
What I'm Reading Locked and Loaded: Private Equity firms’ global real estate funds are now sitting on more than $300 billion of unspent cash, according to Preqin data. Their attention is now turned to what happens when government support and bank forbearance expires. Most of this capital is looking for...
February 15th – Straw Man
February 8th – Dead End?
What I'm Reading Dead End? Distressed debt hedge funds raised billions to take advantage of COVID opportunities. However, the capital markets have largely recovered and junk yields have plunged, leaving them with few opportunities to deploy their dry powder. This is totally reminiscent of the Great Recession when capital raised...