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Volume 15 | Issue 39 | Thursday, September 21, 2017

The Lede


Marcus & Millichap: Fed 'Normalization' Will Affect CRE

The Federal Reserve's plans to ‘normalize' monetary policy following nearly a decade of easing--and the resulting rising cost of capital--could weigh on commercial real estate investor activity, said Marcus & Millichap, Calabasas, Calif.


Top National News

Empowering Women in Real Estate Finance

Mortgage Women Magazine, September 2017--Marcia Davies
MBA COO Marcia Davies says creating a space for women to advance and providing tools so they can reach their full potential must be a collective goal of the real estate finance industry.

Unusually Large Loans Mask Decline In NYC Commercial Real Estate Lending

Forbes, Sept. 20, 2017--Ely Razin
Second quarter commercial real estate loan originations in New York City weren't just big, they were really, really big. The size of those loans appears to be masking what would otherwise look like a decline in New York loan origination for the quarter.

Deutsche Bank Was The Top Dog Among NYC Lenders in Q2

The Real Deal New York, Sept. 19, 2017--Konrad Putzier
Nine months after agreeing to a $7.2 billion settlement with U.S. regulators, Deutsche Bank is on top of the New York City real estate lending world.

Toys 'R' Us Shows Real Estate Can't Save Retailers

Bloomberg, Sept. 19, 2017--Lisa Abramowicz
The company has sought to prop up its failing business model for years by shuffling debt around and adding leverage to less-encumbered assets. This has undermined the extra safety and value that the real estate should have provided.

The Fed, a Decade After the Crisis, Is About to Embark on the Great Unwinding

Wall Street Journal, Sept. 18, 2017--Nick Timiraos (subscription)
The Federal Reserve resorted to a series of shock-and-awe stimulus campaigns to stabilize the economy after the financial crisis. Now the Fed is preparing the final move to unwind its support--and it wants to be as boring as possible.

Federal Reserve Expected to Hold US Interest Rates Steady

Voice of America, Sept. 18, 2017--Jim Randle
U.S. central bank leaders are expected to hold the key interest rate steady this week, but they may begin trimming a huge bond-buying program that was intended to boost economic growth.

Equifax Hack: The Real Estate Industry Is Just As Vulnerable

Forbes, Sept. 15, 2017--Lara O'Keefe
Last week's Equifax data breach shed light once again on the possible ramifications of hacks in the commercial real estate industry if companies do not invest in cybersecurity tech.

Treasury Secretary Mnuchin: Fannie, Freddie Reform a 2018 Issue

HousingWire, Sept. 15, 2017--Kelsey Ramirez
Mnuchin said moving Fannie Mae and Freddie Mac out of conservatorship will come after tax reform, and will be an issue brought up in 2018. He said the mortgage giants still have a lot of changes they need to make before being moved out of conservatorship.

U.S. Retail Sales Fall After Weaker Results in Prior Months

Bloomberg, Sept. 15, 2017--Sho Chandra
An unexpected decline in August retail sales and downward revisions to the prior two months mainly reflected weaker results at auto dealerships, Commerce Department figures showed Friday.

San Francisco Edges Out Washington to Become the Highest-Income Big U.S. Metro Area

Wall Street Journal, Sept. 14, 2017--Ben Leubsdorf, Paul Overberg (subscription)
The technology hub of San Francisco surpassed the nation's capital last year as the highest-earning large U.S. metropolitan area. Median household income in the San Francisco metro area in 2016 was $96,667, just ahead of the $95,843 figure for the Washington region, the Census Bureau announced Thursday.

Irma-Related Damage Could Affect Billions of Dollars in CMBS

National Mortgage News, Sept. 14, 2017--Elina Tarkazikis (subscription)
Damage from Hurricane Irma could affect some $26.6 billion in commercial mortgage-backed securities, according to Morningstar Credit Ratings.

Manhattan's Eager Renters Can't Make a Dent in Apartment Supply

Bloomberg, Sept. 14, 2017--Oshrat Carmiel
Renters signed 7,061 new leases in August, the most for any month in data going back to January 2008, according to a report Thursday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate. Despite all those deals, vacancies climbed to 2.27 percent from 2.14 percent a year earlier, the first annual increase since February.

News and Trends

MBA Chart of the Week: Commercial/Multifamily Property Sales, Mortgage Bankers Originations and Non-Bank Maturities ($ Millions)

Traditionally, commercial/multifamily mortgage bankers originations have tracked very closely with property sales volumes, with 2016 recording $490 billion of originations and $496 billion of property sales. That relationship broke down in the first half of 2017.

Expectations for Institutional Returns Slip

Institutional investors expect commercial real estate returns to slip over the next year, the Pension Real Estate Association's Consensus Forecast survey said.

Hotel Sector Pipeline Increases

There are currently nearly 600,000 hotel rooms under contract to be built in the United States--up 8.8 percent compared to a year ago--reported STR, Hendersonville, Tenn.

CMBS Issuance, Spreads Increase

Private-label commercial mortgage-backed securities issuance volume remained strong through August with $9.9 billion priced, reported Kroll Bond Rating Agency, New York.

Situs RERC: Opportunities in Dallas, Seattle, San Francisco

Dallas, Seattle and San Francisco offer commercial real estate investors the best opportunities among large markets from a relative value vs. price perspective, reported Situs RERC, Houston.

Senate Confirms Patenaude as HUD Deputy Secretary

The Senate yesterday confirmed President Trump's nomination of Pamela Patenaude to serve as Deputy Secretary of HUD.

Commercial/Multifamily Briefs

Fannie Mae, Washington, D.C., priced its ninth Multifamily Delegated Underwriting and Servicing Real Estate Mortgage Investment Conduit of 2017 under its Fannie Mae Guaranteed Multifamily Structures program on September 14. It totaled $772.5 million.

People in the News

Grandbridge Names White to Lead BB&T Real Estate Finance

Grandbridge Real Estate Capital, Charlotte, named Gordon White III program director of BB&T Real Estate Funding, its on-balance-sheet debt-origination platform.

Dealmaker of the Week

Dealmaker: Savanna Secures $100M in Construction Financing

Savanna, New York, secured $100 million in construction financing for 106 West 56th Street in Manhattan, a 26-story Class A office building scheduled for 2019 delivery.

MBA News

Now Taking Applications: MBA Education Commercial/Multifamily Future Leaders Program

MBA Education is taking applications for its Commercial/Multifamily Future Leaders Program, an executive leadership development program that delivers a comprehensive curriculum for selected managers who have shown leadership abilities.

MBA Education Multifamily Property Inspection Workshop in Dallas Nov. 8-9

MBA Education presents its popular Multifamily Property Inspection Workshop in Dallas November 8 and 9.

MBA Accounting/Financial Management Conference Nov. 13-15

The Mortgage Bankers Association's Accounting/Financial Management Conference 2017 takes place Nov. 13-15 at the Grand Hyatt San Antonio.

MBA Summit on Diversity and Inclusion Dec. 4-5

The Mortgage Bankers Association's annual Summit on Diversity & Inclusion takes place Dec. 4-5 at the Capital Hilton in Washington, D.C.

Make Your Voice Heard through MBA Mortgage Action Alliance

The Mortgage Action Alliance is a voluntary, non-partisan and free nationwide grassroots lobbying network of real estate finance industry professionals, affiliated with the Mortgage Bankers Association.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem

Editor: Mike Sorohan 202/557-2855 

Editorial Director: Michael Tucker 202/557-2851 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856

Advertising Opportunities: Bill Farmakis 203/834-8832

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