Wednesday, June 3, 2020

Distress Investors May Have to Wait as Long as 3 Years for Non-performing Loans to Come to Market via GlobeSt

Distress investors have been racing to the market in anticipation of snapping up deals. For the most part they are finding, to some chagrin, that there are little properties and loans available at deep discounts. There has been much positing about when these transactions will come to market—the end of summer and the fourth quarter are two popular timelines—but a better question might be to ask, why are there no distress deals available now? That answer in turn becomes a straight line to the question of when.

Read more...Distress Investors May Have to Wait as Long as 3 Years for Non-performing Loans to Come to Market via GlobeSt

Wednesday, May 27, 2020

Eleventh District Beige Book 5/27/2020 via Dallas Fed

Eleventh District economic activity contracted sharply in April, while preliminary data from May point to a notable easing in the pace of decline as restrictions on businesses were gradually lifted. Activity in the energy and service sectors remained the hardest hit. Manufacturing output and new orders fell further, though food manufacturing continued to increase. Loan volumes contracted broadly, with the exception of residential mortgages and SBA's PPP funds. Home sales fell sharply from mid-March through mid-April but have been improving from low levels since then. Employment and hours worked continued to plummet, pressuring wages. While input costs were flat to slightly up, food processors noted a large increase in meat prices. Selling prices dipped further. Preliminary results from a May Dallas Fed Survey of Texas manufacturing and service firms indicated that current revenue levels for most respondents were down markedly compared with a typical May, and about a fifth said they would not be able to survive past six months if revenues did not improve. Outlooks remained weak due to uncertainty surrounding the pace and scope of the reopening of the District economy.

Read more...Eleventh District Beige Book 5/27/2020 via Dallas Fed

Tuesday, May 26, 2020

May Rent Payments Hit 91 Percent via Multi-Housing News Online

Three weeks into May, 90.8 percent of rental households have made full or partial rent payments, according to just-released data from the National Multifamily Housing Council.

By comparison, by the same time last month, 89.2 percent of renters had made a payment, while 93 percent of rental households had made a payment through the same time period last year.

Read more...May Rent Payments Hit 91 Percent via Multi-Housing News Online

Coronavirus Dents Multifamily Development via Multi-Housing News Online

This was supposed to be a year marked by a healthy amount of new multifamily supply, as some 300,000 units were on pace to open by the end of 2020. But federal, state and local stay-at-home orders and other responses to the coronavirus pandemic will likely reduce that to around 250,000 units, according to projections by commercial real estate brokerage Marcus & Millichap and REIS, the property research arm of Moody’s Analytics.

Read more...Coronavirus Dents Multifamily Development via Multi-Housing News Online

CRE Economists Think Current Recession Won't Be as Bad as the 2008 Crisis via GlobeSt

Nearly 40 real estate economists and analysts feel the COVID-19 recession will impact real estate markets and values less severely than the 2008 financial crisis—except for retail and hotel real estate.

The economists predicted there will be a $275 billion decrease in real estate transaction volumes in 2020, according to a survey in May by the Urban Land Institute. But they expected transaction volumes to rise over the next two years, which would create a healthier capital market compared to the 2008 Great Recession.

Read more...CRE Economists Think Current Recession Won't Be as Bad as the 2008 Crisis via GlobeSt

Wednesday, May 20, 2020

Why Multifamily Rents are Holding Up Better than Expected via NREI

Despite mass unemployment and underemployment, multifamily rental payments have held up far better than many industry experts expected amid the economic wreckage caused by the spread of the novel coronavirus.

More than 36 million people have filed for unemployment in recent weeks and millions of others working fewer hours and taking reduced pay. That’s amid new estimates that real GDP growth for the second quarter will come in at -42.8 percent. Toss in a backdrop in which, as of December, 69 percent of Americans had less than $1,000 in savings accounts, and it would seem to paint a bleak picture on the ability of renters to meet their obligations.

Read more...Why Multifamily Rents are Holding Up Better than Expected via NREI

Tuesday, May 19, 2020

What Lenders Look for in New Loans: Q&A via Multi-Housing News Online

Pandemic-fueled uneasiness has forced lenders to realign underwriting strategies. Anthony Delfre, managing director of the Real Estate Advisors Group at Brown Gibbons Lang & Co., spoke to Multi-Housing News about the multifamily debt market amid the lingering global health crisis. What deals are lenders focusing on and who is still active in the mortgage industry?

Read more...What Lenders Look for in New Loans: Q&A via Multi-Housing News Online

Monday, May 18, 2020

Almost 88% of renters nationwide have made their May payments via Dallas Morning News

Apartment renters are continuing to make their monthly payments in the face of the pandemic.

Almost 88% of renters nationwide had made their May rents as of this week, according to the latest report from the National Multifamily Housing Council.

Read more...Almost 88% of renters nationwide have made their May payments via Dallas Morning News

Multifamily Loan Maturities Expected to Rise as Net Operating Incomes Drop via GlobeSt

Maturities for multifamily loans will be up this year by double-digits during the disruption of capital markets by the COVID-19 pandemic, according to a new report from CBRE.

The rise in multifamily maturities—up 11.9% to $72.9 billion in the main lender categories—is expected, writes report author Jeanette Rice, CBRE’s head of multifamily research for the Americas. It’s part of “a new ‘wall of maturities’ that is building for the 2022-2026 period.”

Read more...Multifamily Loan Maturities Expected to Rise as Net Operating Incomes Drop via GlobeSt

ALN Monthly Market Stats May 2020 via ALN Apartment Data

ALN Data just released their April 2020 market stats on occupancy and rents for over 80 markets. In Texas, it includes DFW, Austin, Houston, San Antonio, Lubbock, Amarillo, Abilene, Corpus Christi and more. It is a must read from a great provider of apartment data.

Read more...ALN Monthly Market Stats May 2020 via ALN Apartment Data