What I’m Reading Locked Down: In a move that should come as no surprise, President Elect Joe Biden and his team are leaning towards extending the CDC eviction moratorium that is set to expire December 31st. Ultimately, this program is just a band aid that forces landlords to shoulder the burden...
November 24th – Cracks in the Armor
What I’m Reading Cracks in the Armor: Chuck E Cheese (CEC Entertainment) was able to successfully use a Force Majeure clause to lower its rent in a bankruptcy case. This provided evidence that bankruptcy courts may be willing to grant debtors extraordinary relief in light of the ongoing pandemic, but...
November 20th – Swept Under the Rug
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 10th – Shot in the Arm
One Big Thing Like me, most of you probably woke up yesterday morning to the Pfizer COVID-19 vaccine news from the AP: Pfizer Inc. said Monday that its COVID-19 vaccine may be a remarkable 90% effective, based on early and incomplete test results that nevertheless brought a big burst of optimism...
November 9th – Thou Dost Protest Too Much
One Big Thing Its no secret that office landlords – especially those in expensive coastal markets – are struggling. Vornado Realty Trust (VNO) is one of the worst positioned for the post-pandemic world with the vast majority of its holdings in NYC. Vornado’s recent earnings sucked – and missed already-low...