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An index of hotels tracked by Green Street Advisors was off 10% last month year-over-year, and Green Street’s broad valuation index in February rose 8.7%, a drop from March ’15’s 11% surge. It’s not clear yet whether February is an anomaly or a sign of the new normal, although other developments seem to favor the latter. Brandywine Realty Trust sold off $765M of property this year, for example.
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Rev up for spring cleaning by adding these four oft neglected areas to your list to get your home cleaner than ever.
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The elevator in 1 World Trade Center plays a time lapse of the NYC skyline from 1500 to today.
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CMBS conduit lenders, facing extremely inhospitable market conditions, have slowed their lending to a trickle.
With CMBS spreads widening to levels not seen in years, it has become extremely difficult to generate any sort of profit from the practice of originating loans, warehousing them, structuring them as CMBS and selling the resulting bonds. As a result, conduit lenders not tied to banks with balance-sheet capacity, have sharply reduced their lending. And those tied to banks have substantially increased their loan spreads, which are used to determine loan coupons.
Meanwhile, loan coupons, which conduit lenders typically had been setting well before a loan was actually securitized, are now being set at closing. That means a borrower typically won’t know the exact rate they’ll be charged for their loan until it’s funded. And many conduit lenders, all of which are in risk-mitigation mode, are insistent on closing loans as close to the time of securitization as possible.
So far this year, the weighted average coupon of loans included in conduit deals has ranged from a low of 4.55 percent to a high of 4.79 percent. That compares with an average of 4.40 percent for all of last year’s issuance.
View entire article in Commercial Real Estate Direct.
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Commercial real estate had a banner year in 2015, and the fundamentals of high demand and low vacancies are still driving rents higher. There is, however, a catch that could cool the market quickly, at least when it comes to financing. Investors are insisting on high yield, and the bonds backing commercial mortgages are not giving them that, so they are moving on to other products, leaving a big crack in commercial financing.
“I think cracks is a little bit of an understatement for where the market has been for January and February, where, for all practical purposes, the market was frozen,” said Willy Walker, chairman and CEO of Walker & Dunlop, a real estate finance firm.
Commercial real estate, which includes apartments, shopping malls, offices and warehouses, are backed by nearly $3 trillion in mortgages, according to the Mortgage Bankers Association (MBA). The lenders include big banks, which are the largest, insurance companies and commercial mortgage backed securities (CMBS), which are bonds sold to investors. That last one is where the problem lies. It is the second-largest source of commercial real estate debt, and during the last boom, back in 2005, CMBS was very popular.
CMBS tends to have a 10-year life span, at which point the debt matures and real estate owners have to refinance the loans. These maturities are expected to surpass $400 billion annually this year and in 2017, according to CBRE, a real estate services firm. That is $100 billion more than last year. CBRE “conservatively” estimates that 18 percent of loans this year and 29 percent of loans next year could have problems refinancing, due to lack of investor demand for the bonds. This translates into about $43 billion in potentially troubled loans over these two years.
“We think some of these are going to be remonetized through asset sales, but some will certainly hit the foreclosure list and end up on the special services list of loans to be worked out,” said Brian Stoffers, who oversees the debt and structured finance practice at CBRE.
View entie article here at CNBC.COM
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U.S. commercial real estate prices dropped in January for the first time since 2010, a sign of weakening demand by investors after a six-year rally that pushed values to records.
The Moody/RCA Commercial Property Price Index slipped 0.3 percent from December, Moody’s Investors Service said in a statement Monday. The decline was led by office and industrial buildings, which each had a price drop of more than 1 percent.
“This is a significant milestone that signals that a shift in sentiment among commercial-property investors is under way,” Moody’s said in the statement.
The Moody’s index has almost doubled since its January 2010 trough and is about 17 percent higher than its previous peak, as low interest rates and rebounding economic growth fueled property demand. Prices have jumped the most for office buildings in top cities such as New York and San Francisco, more than tripling since the market’s bottom
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When you invest in women, you also invest in their family, their community, and in the next generation of change. And Kiva is making it happen.
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Nearly 60 years of history, 3,500 drive-in locations, and more than 3 million customers a day — why aren’t more people talking about Sonic?
Sonic Drive-In is the fourth-largest burger chain in the US, after McDonald’s, Burger King, and Wendy’s, with $4 billion in sales in 2015.
However, the carhop chain is often left out of the national discussion of the fast-food industry, in part because Sonic isn’t quite like any other chain around.
The most obvious differentiator is that Sonic utilizes a drive-in model.
As opposed to most quick-service chains, which are walk-in and drive-thru, nearly all Sonic locations allow customers to pull up and park at the drive-in (though many also offer sit down and drive-thru options). Then, carhops deliver food directly to the cars, either on foot or roller skates.
View the entire article here in Business Insider.
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