The Millstone Times July 2021

REAL ESTATE

By, Zach Schofel www.creroundup.com

Commercial Delinquencies Are At Their Lowest Level Since Pre-Pandemic. A new report from the Mortgage Bankers Association shows mortgage delinquencies on multifamily and commercial properties have now hit their lowest point since last March. 95.2% of out- standing loan balances were current in May. Just 3.1% were 90 or more days delinquent, while 1.7% were delinquent between 1 and 89 days. While loans on offices, apartments, senior living facilities, and industrial buildings are showing the lowest delinquency rates and fastest recoveries, pockets of elevated stress remain in loans backed by lodging and retail properties. (MA) Industrial Rent Growth Q1 Recap. San Francisco, New York City, and Washington D.C. posted the highest average industrial rents in the country in the first quarter of the year, with each clocking in at more than $10 PSF for logistics space. Breaking down the data on a quarter-over-quarter basis shows even greater nuance among markets, with Baltimore posing gains of nearly 10% over Q4, followed by Denver and Seattle. On the flip side, Dallas-Ft. Worth, Kansas City, and South Florida all showed decreases quarter-over-quarter. Midwestern cities like Minneapolis, Cleveland, and India- napolis—as well as Denver and the NYC metro area—all showed lower year-over-year asking rates in Q1. (GS) Biden Extends CDC Eviction Moratorium Again! The Biden administration extended the federal ban on evictions for a fourth and likely final time. Landlord groups, such as the National Multifamily Housing Council, criticized the extension. The National Apartment Association said “flawed eviction moratoriums” have left renters with insurmountable debt. 14 states plus the District of Columbia have additional eviction bans in place and over half are set to expire this month. In New York, property owners are more concerned with the state ban, which keeps tenants out of housing court until September 1. (RD) Amazon Commits $300M Toward Affordable Housing. Amazon has committed $300M to create 3,000 new affordable homes near public transit for families in the Puget Sound, Arlington, and Nashville regions. Transit-oriented development is a unique approach to preserving and creating affordable housing options so moderate- to low-income families can afford to live near—and benefit from—quality public transit. When successful, TOD has a range of benefits, including greater economic activity, reduced traffic congestion and associated environmental benefits, and a strengthened, more resilient labor force. NATIONAL ACQUISITIONS ROUNDUP Multifamily • Harbor Group + Cammeby’s has agreed to acquire a 5,300-unit portfolio spread among 41 class B properties in Northern and Central New Jersey from an Undisclosed Family Office for over $1B, or at least $188,679 per unit. The properties are each located in markets with documented histories of apartment demand, and the transaction marks one of the largest multifamily trades in New Jersey’s history. (TRD) • Universe Holdings has acquired Mariners Cove, a 226-unit multifamily property in Toms River, New Jersey, fromMorgan Properties + Kushner Com- panies for $60M, or $265,487 per unit. The acquisition marks Universal Holdings’ first foray into the East Coast, with more potential acquisitions in their pipeline. NATIONAL FINANCING ROUNDUP • Blackstone Group has secured $1.63B in CMBS financing to recapitalize an industrial portfolio. Citigroup + Goldman Sachs + Barclays + Bank of Montreal provided the funding, which took shape as a floating rate, interest-only loan with a two-year maturity. • H.I.G. Realty Partners + Lincoln Equities Group have secured a $76M loan to finance their acquisition and capital improvements of a life sciences campus in Hopewell, New Jersey. ArrowMark Partners provided the funding. • Blackstone Real Estate Partners + Starwood Capital Group have successfully closed on their acquisition of Extended Stay America’s 560-hotel port- folio. JPMorgan Chase + Citi + Deutsche Bank provided $4.7B in financing through a single-asset, single-borrower CMBS loan, one of the largest offerings in the last decade. • Sabey Corporation + National Real Estate Advisors secured $250M in financing to refinance the former Verizon office tower in Manhattan. Wells Fargo + JPMorgan provided a $220M, 10-year, fixed-rate loan package for the project, which includes an additional $30M in mezzanine debt.

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