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Mogul Minute 09/19/2016
September 19 | 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:

Smaller Banks Are Now Biggest Lending Class (Globe St)

  • Per RCA, regional and local banks accounted for 21% of all commercial mortgage originations in the first half of 2016. This is a marked increase from their typical levels of commercial mortgage origination of 12% between 2011-2014.
  • “On the face of it, the rapid growth in smaller banks’ lending might appear to be a cause for concern, perhaps suggesting ‘undisciplined growth’. ‘Instead, our analysis lends credence to the view that these lenders are stepping up to fill a critical gap as CMBS lenders have pulled back.’”
  • “From 2012 to 2015 the book of business for these lenders was more heavily weighted towards new acquisitions, which represented 69% of their business. In H1’16, however, half of all their business has been focused on refinancing.”

Fund Managers Pour $2.9B into Real Estate This Week, A New Record (Bisnow)

  • According to EPFR Global, this week was a record for REITs as real estate funds posted their largest weekly inflows ever (versus their previous record of $1.68B earlier this year).

Flooding in Louisiana Creates Uncertainties for Roughly $1.1 billion in CMBS Loans (Urban Land)

  • 302 properties are located in the 20 Louisiana counties that have been declared major disaster areas by the Federal Emergency Management Agency (FEMA) – now putting ~$1.1B of CMBS loans in jeopardy.
  • Top 10 loans potentially affected below:

 

CMBS Market Wakes Up After a Month-Long Nap (Trepp Talk)

  • Seven CMBS came to the market this week and represent approximately 15% ($5.9B) of the $41.5B of all CMBS deals in 2016. The early takeaway is that the three deals that were priced this week had spreads that were “markedly wider than those of the last few conduits.” The author mentions “overall choppy conditions in the broader fixed-income markets driven by investors’ growing concern about inflation.”
  • The collateral was conservatively underwritten. The collateral has higher metrics across the board than the average of the 32 preceding conduit deals (56.3% LTV, DSCR of 2.38x, and DY of 11.6% versus 60.7% LTV, DSCR of 1.89x, and 11.17% DY).

National Apartment Report: September 2016 (Abodo)

  • While rent growth is still strong for the multifamily sector as a whole, some softness has begun to appear in certain markets. here are the month’s biggest risers and fallers for the month:

 

Developer shells out $111M for site of contentious South LA project (Curbed)

  • Massive mixed-use project going up in Culver City at the corner of La Cienega and Jefferson by Carmel Partners. Will consist of apartments, offices, and a grocery store.

 

Tim Ednoff Headshot
Written by , Associate - Commercial Equity at RealtyMogul.com

Tim evaluates investment opportunities as well as performs due diligence and writes content for various equity and debt transactions. Outside of the office, Tim is an avid sneaker collector, a passionate health and fitness advocate, and a dedicated podcast enthusiast.

 
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