After approving another rate hike, The Federal Reserve left the door open for an interest rate pause when it meets next in June. Fannie Mae’s Chief Economist Douglas Duncan details how a trio of bank collapses helped drive that potential pause and what a mild recession means for the mortgage market.
In the wake of the collapse of Silicon Valley Bank and Signature Bank, First Republic, a prominent mortgage lender in San Francisco, lost billions in deposits. But what does that mean for lending and can the bank survive? The Real Deal's Isabella Farr looks at First Republic Bank's financial health and how some of its long-term mortgages are posing issues for the bank's balance sheet. Plus, Deconstruct chats about the New York state budget and New York Community Bank’s earnings. Disclaimer: This...
Last November, Airbnb launched its tenant-friendly apartment venture, a product that allows renters to list units with their landlords’ consent. The firm pegs the service as a win-win that offers on-the-books income for tenants and perks for owners. Jesse Stein, Airbnb’s global head of real estate breaks down the product’s potential and which national landlords are already on board.
When Jacob Garlick, a relative unknown in the small world of New York real estate, secured the winning bid on the Flatiron building, he told NY1 the moment had been a “lifelong dream since he was 14 years old.” Two days later he flaked on the down payment. The Real Deal's Deconstruct chats with senior reporter Keith Larsen on the man behind the botched buy and why Garlick is still gunning for the building. Credits: NY1
The launch of ChatGPT last year presented an existential problem for residential brokerage: Would the new tech transform into a beloved virtual assistant or the type of threat that could undermine their role in real estate?
We all know the story: wealthy buyers flocked to pour money into homes in South Florida. But is the demand still there, given rising interest rates? The Real Deal's Deconstruct chats with TRD's residential bureau chief Katherine Kallergis about how the market has softened, but some are plowing ahead with exorbitant buys. Plus, Deconstruct chats about the Flatiron building, Chicago's upcoming election, Blackstone's multifamily loans and First Republic's balance sheet. Subscribe to The Real Deal n...
As distress descends on commercial real estate, Deconstruct analyzes how past financial crises can inform how borrowers, banks and policy makers handle this down cycle. Guests include: Bob Knakal, JLL Senior Managing Director, Head of New York Private Capital Group; and Sam Chandan, Professor of Finance and Director of the Chao-Hon Chen Institute for Global Real Estate Finance at the New York University Stern School of Business.
Let's talk about last week. The Real Deal’s Deconstruct explains the catalysts behind the collapse of Silicon Valley Bank and Signature Bank last week and the lasting impact on regional banks, real estate lending and the Fed’s next steps. Credits: CNBC, ABC News, NBC News, CBS, CNN, Forbes
Brookfield has defaulted on $784 million worth of loans connected to office towers in Los Angeles. Starwood foreclosed on the completely vacant Broadway Trade Center. A deal to sell a 40-story tower has been delayed for the 10th time. So what is going on with Downtown L.A.‘s office market? Deconstruct chats with Michael Soto, a research director at Savills, about the pain we’re seeing across the city’s center and how we ended up here. Credits: CNBC
For the past year, public real estate investment trusts that own or manage office buildings, hotels and multifamily have traded at steep discounts as investors feared rising rates would take a whack to profits and property values. Amid that downturn, Ben Miller, CEO of investment platform Fundrise, has set his sights to credit. Tune in for the lowdown on why Miller sees opportunity in debt and which asset classes he’s eyeing once equities markets recover.
What goes up must come down, right? That’s one of the myths that has followed the Sun Belt’s multifamily market for decades, says Real Page Chief Economist Jay Parsons. It’s the idea of a boom and bust cycle, wherein strong periods of investment give way to supply levels that overserve demand. In practice, though, the Sun Belt has proved itself a market as or more resilient than many coastal cities. Here’s the rundown on why 2023 will likely be no different.
Michael Shvo doesn't care about how other people's office buildings are doing, just his own. He also thinks it's time for some of New York's office buildings to be demolished and rebuilt. TRD's Deconstruct sat down with the luxury developer to discuss the capital he deployed during the pandemic, why he's bullish on the office market in New York and San Francisco, and how he's taking advantage of a lack of office space in Miami Beach.
From LA to D.C., tenant protections have emerged as the policy du jour after two years of rising rents cemented affordaiblity as a headline issue. Los Angeles has rolled out a patchwork of renter-friendly policies; the White House made a push for better regulation of the rental market and six states are eyeing reforms that would allow cities to instate their own versions of rent control. So what’s the rub? Economists say capping rents is the best way to kill affordability. Deconstruct has the br...
Last week, the Federal Reserve hiked interest rates for the eighth time in less than a year, sending benchmark rates to their highest level since 2007. For a mortgage market that has seized in the wake of higher financing costs, another rate hike would seem to be bad news. But Nadia Evangelou, senior economist at the National Association of Realtors, says the slowing pace of hikes could offer markets the type of certainty that could revive mortgage demand.
Twitter has stopped paying its rent, auctioned off furniture and let go half of its employees. None of that is helping Shorenstein and JPMorgan refinance a $400 million loan on the company’s San Francisco headquarters. Deconstruct chats with TRD reporter Emily Landes about Twitter's fights at the building and how it's emblematic of the larger impact of tech's shakeup on the San Francisco Office Market.
Times Square hotels are headed to bankruptcy. Investors are clawing at distressed properties in Chicago. High interest rates are making it harder for investors to transact. And in California, more supply is coming offline, as developers look to hotels for adaptive reuse projects. Deconstruct chats with Atlas Hospitality Group president Alan Reay about the looming distress across the hotel industry, but where investors are finding pockets of hope.
Times Square is already full of tourists, billboard glitz and Broadway shows. SL Green, New York's largest landlord, is now bidding to build a casino in the entertainment hub. The firm has placed a bid with the city to take up one of three casino licenses up for grab in Downstate New York. The Real Deal's Deconstruct chats with SL Green executive Brett Herschenfeld about why the firm chose Times Square and why it has teamed up with Caesars on its plans. Further reading: https://therealdeal.com/2...
On Tuesday, Jan. 10, Gov. Kathy Hochul delivers her State of the State address for 2023. Deconstruct has the scoop on where the governor's priorities lie when it comes to New York real estate. Hint: Affordable housing is a huge one.
It's the end of the year as we know it, and investors feel — uncertain. Rate hikes have slowed deals in the second half of 2022 and Fed Chair Jay Powell said there's more pain to come. But how long will all the available dry powder stagnate on the sidelines? Deconstruct breaks down 2023 forecasts for multifamily, retail, industrial and office and chats with Moody's Senior Economist Thomas LaSalvia about when the deal dam might break.
High rates and uncertain times have seen traditional CRE transactions falter in recent months. But for deal-hungry investors, Harrison Street CEO Christopher Merrill says there's an alternative — alternative assets. The executive makes the case that once-fringe investment vehicles like student housing or self-storage hold the recession-proof demand and repricing power investors are craving.
After low interest rates propelled investment sales to a record-breaking year in 2021, commercial brokerages including CBRE, Newmark and JLL, are now feeling the brunt of the impact. They're pushing to cut costs, some have laid off employees, but all agree the macroeconomic environment has made it hard to do business. Deconstruct chats with TRD reporter Patrick Ralph about the reasons behind the brokerages’ pain and whether the firms will see relief in the future.
As commercial real estate deals have sputtered under the pressure of a rising rate environment, one asset has proved a safe bet: grocery-anchored retail. Sales of shopping centers with a supermarket soared during the pandemic and should hold steady as other trades falter.
With rising interest rates, major institutions have cut back on lending. Issuances of commercial mortgage-backed securities dropped 35 percent in the third quarter, compared to the second. Deconstruct chats with Madison Realty Capital's Josh Zegen about what opportunities are still out there — coming from distress, loans on loans and creative refinancings. Credit: NBCLA
Compass CEO Robert Reffkin had a busy Nov. 10. Hours after speaking at a TRD forum in Miami, Reffkin got on a conference call with analysts to discuss the company's much anticipated earnings results for the third quarter. Compass lost $157 million from July through September — more than it lost in the second quarter. Deconstruct looks at the state of the brokerage, why it's struggling and where it goes from here. Guests: TRD reporter Harrison Connery, TRD deputy web editor and South Florida repo...
Industry experts agree: Converting unused office towers to residential buildings is great in theory, but a moonshot to pull off. Despite the grab bag of obstacles that make these projects so difficult, the developer and office landlord Hines is getting in on the action. The Real Deal breaks down how Hines' Salt Lake City project pencils out and what it signals about the right building for the job. Guests: Steven Paynter, studio director at Gensler's Toronto office; Dusty Harris, senior managing ...
After the city of Santa Monica failed to submit a state-approved housing plan on time, developers raced to capitalize on the city's failures. Under California state law, developers in cities whose housing plans fall out of state compliance can turn to filing so-called “builder’s remedy” projects that do not require the usual consent of municipal councils or planning commissions. But how did this happen? TRD's Deconstruct chats with reporter Trevor Bach about why the city of Santa Monica is set t...
Investors have flocked to purchase single-family homes across the U.S., as technology has made the asset class scaleable. But, how will the sector fare with inflation, increasing interest rates and a potential recession on the horizon? Deconstruct chats with Doug Brien, the CEO of single-family rental management and investment firm Mynd about why he's still bullish on the asset class.
Ahead of its third quarter earnings, TRD's Deconstruct chats with senior reporter Keith Larsen about where WeWork stands and how it’s going about cutting costs under CEO Sandeep Mathrani. The company faces a difficult road in its effort to bounce back from its disastrous 2019 IPO attempt and navigate a struggling office fundamentals at the same time.
We all know how mortgage rates have shot up over the last few months, as the Fed has hiked up rates to fight inflation. But, home prices remain stubbornly high across the country. So, what's the deal? Deconstruct chats with Redfin's chief economist Daryl Fairweather about discussed the impact of the rate shifts on first-time homebuyers and why a slowdown in sales activity has not coincided with a decline in prices.
It’s real estate trivia this week. A workhorse of the construction industry is now a disappearing resource. The catch: Few recognize the material is quickly slipping through our hands. TRD’s Deconstruct chats with reporter Kathryn Brenzel about the root of the crisis and how the industry can best adapt.
