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Volume 16 | Issue 45 | Thursday, November 08, 2018

The Lede

 

MBA: 2018 Commercial/Multifamily Originations Forecast to Match 2017's Record Year

The Mortgage Bankers Association says it expects commercial and multifamily originations to close the year roughly on par with the record activity seen in 2017.

 

Top National News

 
Multifamily Lending in U.S. Hit New High of $285 Billion in 2017

World Property Journal, Nov. 1, 2018--Monsef Rachid
According to the Mortgage Bankers Association's annual report on the U.S. multifamily lending market, strong market conditions helped fuel a 6 percent increase in multifamily lending in 2017, as lenders provided a record high $285 billion in new mortgages for apartment buildings with five or more units.

Siding with Landlords and Lenders, Voters Reject Expanded Rent Control

National Mortgage News, Nov. 7, 2018--Elina Tarkazikis (free article)
California voters rejected Proposition 10, which would have reduced state restrictions on municipal rent control laws that proponents said would create more affordable housing options for tenants, but was opposed by real estate and mortgage industry interests. "We recognized early on that this could have a very far-reaching impact on the multifamily industry and the housing industry, so we're very pleased with the outcome of the election," said Sharon Walker, associate vice president of multifamily at the Mortgage Bankers Association.

Lowe's to Close Nearly 50 Stores

Wall Street Journal, Nov. 5, 2018--Sarah Nassauer (subscription)
Lowe's Cos. Inc. said it would close nearly 50 stores as a new CEO seeks to boost sales by shedding less-profitable locations and focus spending elsewhere.

LaSalle to Enter U.S. Debt Market by Acquiring $1.2 Billion Firm

Bloomberg, Nov. 1, 2018--Gillian Tan
Jones Lang LaSalle subsidiary LaSalle Investment Management is betting big on commercial real estate debt. LaSalle is acquiring a majority stake in Latitude Management Real Estate Investors, which manages $1.2 billion across credit funds. Latitude provides short-term, or bridge, loans to borrowers focused on commercial property in regions of the U.S. deemed to be growing.

New Toys 'R' Us Owners Mull Physical Stores

Crain's Chicago Business, Nov. 2, 2018
The hedge funds that now own the Toys "R" Us brand plan to relaunch the toy retailer as a standalone operation next year. They will look to raise capital to help revive the chain, which closed its last stores at the end of June, and are making plans that include brick-and-mortar locations.

Release of Guidelines Renews Interest in Opportunity Zones

Commercial Property Executive, Nov. 2, 2018--Paul Fiorilla
The Treasury Department's release of guidelines for opportunity zones has unleashed a flood of managers raising funds to invest in low-income areas and take advantage of tax breaks.

News and Trends

 
MBANow: CREF Corner Office Conversation with DBRS's Erin Stafford

The Mortgage Bankers Association released a new interview with DBRS Managing Director Erin Stafford, who discussed commercial mortgage-backed securities, the role of rating agencies and the credit outlook for commercial real estate.

MBA Chart of the Week: Multifamily Lending in 2017

The multifamily mortgage market is large and diverse, with 2,554 lenders making 44,623 loans totaling a record $285 billion in 2017 involving loans ranging in size from thousands of dollars to hundreds of millions of dollars.

FHFA Holds GSE Multifamily Lending Caps Steady

Fannie Mae and Freddie Mac multifamily lending caps will hold steady at $35 billion in 2019, the Federal Housing Finance Agency announced yesterday.

CMBS Delinquency Rate Reverses Direction

The commercial mortgage-backed securities loan delinquency rate reversed its consistent improvement in October, moving one basis point higher to 3.42 percent, reported Trepp, New York.

ULI: Open Space Can Deliver Significant Return on Investment

Developers can see a return on investment by incorporating parks and open spaces in their properties, reported the Urban Land Institute, Washington, D.C.

People in the News

 
Jenkins to Lead Freddie Mac Multifamily Business Immediately

Freddie Mac, McLean, Va., named Deborah Jenkins Executive Vice President and Head of its multifamily business effective immediately.

Dealmaker of the Week

 
Berkadia Arranges $46.5M Refinancing for Causeway Square

Berkadia, New York, secured $46.5 million to recapitalize Causeway Square, a 169,000-square-foot mixed-use development in North Miami, Fla.

MBA News

 
CREF19 in San Diego Feb. 10-13

The Mortgage Bankers Association's Commercial Real Estate Finance/Multifamily Housing Convention & Expo 2019 returns to San Diego Feb. 10-13.

About MBA Newslink

President and CEO: Robert Broeksmit, CMB

Publisher: Marcia Davies, Chief Operating Officer

Vice President of Public Affairs: John Mechem jmechem@mba.org

Editor: Mike Sorohan 202/557-2855 msorohan@mba.org 

Editorial Director: Michael Tucker 202/557-2851 mtucker@mba.org 

Senior Editorial/Advertising Specialist: Lesley Hall 202/557-2856 lhall@mba.org

Advertising Opportunities: Bill Farmakis 203/834-8832 bill@jlfarmakis.com

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One Voice. One Vision. One Resource. The Mortgage Bankers Association (MBA) is the national association representing the entire real estate finance industry. For more information visit us at mba.org.