Mogul Minute 08/08/2016
Here at RealtyMogul.com, we keep our finger on the pulse of all things real estate, from finance to technology and everything in between. We make a point of sharing interesting articles and think pieces among RealtyMogul.com staff to help our team stay abreast of the market, and ahead of the curve.
So we thought, why not share some of these insights with you, our partners?
Got a Minute? Here’s some recommended reading with key points from the content:
Economy Watch: Employment Surges Again in July (Multi-Housing News)
- Job numbers came in strong for the second straight month as 255,000 jobs were added in July.
- Oil related employment continued to trend downward while professional and business services added 70,000 jobs in July. The category has added 550,000 jobs over the past 12 months.
- The unemployment rate held steady at 4.9% nationally as the increase in jobs is mitigated by the increased number of people looking for jobs.
First CMBS Deal Compliant with Risk Retention Put on Starting Block (Trepp Talk)
- The first CMBS deal to comply with the new Dodd-Frank rules is now out on the market (Wells Fargo Commercial Mortgage Trust, 2016-BNK1). As a reminder, the new rules go into effect in December later this year and require issuers to keep a 5% interest in one of a vertical, horizontal, or combo piece. Globestreet gave a more detailed explanation of the rules here.
- In general, this deal involves more conservative collateral than typical CMBS deals as it featured a below average number of hotel loans and low tertiary market exposure. The Shops at Crystals in Las Vegas, the Vertix Pharmaceuticals headquarters and the Renaissance Dallas hotel are among the higher profile properties included in the securitization.
- The conduit was issued by Wells, Bofa Merrill Lynch, and Morgan Stanley – they chose to retain a 5% vertical strip in the deal’s RR1 class amounting to ~$44M of the total $870M securitization
- Here is a link to the Prospectus for those that want to dig further.
LA Plaza Village Breaks Ground in El Pueblo (Commercial Property Executive)
- New development going up across the street from the courthouse in downtown LA that will consist of a four mid-rise structures totaling 425,000 SF of condos and multi-family as well as 44,000 SF of retail space. This project is unique as 20% of the units are designated as affordable.
- The project is a JV between High Street Residential, Principal Real Estate Investors, and the Cesar Chavez Foundation.
Dollar Tree Moves Forward with $110M Virginia HQ (Commercial Property Executive)
- Dollar Tree is moving its corporate headquarters to Chesapeake, VA in a move that will bring 600 new jobs to the area.
- The project was previously put on hold in 2013 due to zoning issues due to the height of the proposed building. The new building will now be the tallest building in the area.