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Volume 16 | Issue 43 | Thursday, October 25, 2018

The Lede


MBA: Multifamily Lending Increased 6 Percent to a New $285B High in 2017

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, the Mortgage Bankers Association reported today.


Top National News

New MBA Council Focuses on Commercial Real Estate

National Mortgage Professional, Oct. 23, 2018--Phil Hall
The new body, which will replace the MBA's Investor Council, is designed to formulate ideas about investment in commercial real estate debt. It will also present information on market trends and develop best practices and industry standards. Council members will include professionals from life insurance companies, banks, securitized lenders, debt funds and government-backed capital sources.

Is It Time to Invest in CRE Debt?

National Real Estate Imvestor, Oct. 23, 2018--Joseph Iacono, Kim Diamond
Ten years have passed since the global financial crisis and the last commercial real estate downturn. In a market that is likely approaching its cyclical peak, it is time for global investors seeking a portfolio hedge to move out of commercial real estate equity and into debt.

Proposition 10, Which Would Expand Rent Control, is 'in Deep Trouble,' Poll Shows

Los Angeles Times, Oct. 19, 2018--Liam Dillon
Robert Shrum, co-director of USC's Center for the Political Future and a longtime Democratic strategist, said the numbers don't look good for the initiative. The election is less than three weeks away, and landlord-backed opponents of the measure are significantly outspending supporters.

Alarm Bells for CRE Lenders after Bank OZK's Bad Quarter

National Mortgage News, Oct. 19, 2018--John Reosti (subscription)
Bank OZK in Little Rock, Ark., did more than stub its toe when it reported lower profit tied to two big chargeoffs. The $22 billion-asset company may have lost the confidence of investors for the foreseeable future, even though management used an earnings call to passionately defend its heavy reliance on commercial real estate lending, where the chargeoffs took place.

Stuck in Neutral: CMBS Issuance Stalls Amid Stiff Competition

National Real Estate Investor, Oct. 24, 2018--Beth Mattson-Teig
Commercial mortgage-backed securities lenders are working harder to retain market share in a highly competitive sector where the overall pie for conduit lending doesn't appear to be getting any bigger.

Big Builders Jump Into ‘Financing Gap' to Fuel NYC Construction Boom

Bloomberg, Oct. 19, 2018--Natalie Wong, Justina Vasquez
New York developer Silverstein Properties Inc. built a $4 billion pipeline of real estate deals just weeks after starting. None of the money was for buildings it will own.

News and Trends

MBA Launches New Business Council for Commercial Real Estate Finance Members

The Mortgage Bankers Association announced formation of the Capital Council, a new business council, consisting of commercial real estate finance professionals from MBA member firms.

MBA, Trade Groups Ask Agencies to Revise Volcker Rule

The Mortgage Bankers Association and other industry trade groups urged federal banking agencies to streamline the "Volcker Rule" to reduce costs for businesses.

Green Buildings Gaining Ground

The commercial real estate industry is making significant progress in reducing energy consumption, carbon emissions, water usage and waste disposal, reported the Urban Land Institute, Washington, D.C.

Hotel Sector Sees Mixed 3Q Performance

The U.S. hotel sector saw mixed year-over-year performance during the third quarter and full-year 2017 performance fell short of expectations, analysts said.

Cap Rates Edge Higher

Cap rates edged higher in the second quarter, but they remain low; economic growth should support demand for commercial properties, offsetting further cap rate increases, reported Wells Fargo Securities, Charlotte, N.C.

Single-Family Rent Prices Increase 3.1% Year-over-Year

Rent prices in single-family rental properties increased 3.1 percent year-over-year in August, reported CoreLogic, Irvine, Calif.

Commercial/Multifamily Briefs

RealPage, Richardson, Texas, agreed to acquire Rentlytics, San Francisco, for nearly $57 million.

People in the News

Pollem New Morningstar Credit Ratings LLC Head of Commercial Mortgage-Backed Securities Ratings and Analytics

Kurt Pollem joined Morningstar Credit Ratings LLC as Head of Commercial Mortgage-Backed Securities Ratings and Analytics. He will be responsible for leading Morningstar's CMBS and other commercial real estate ratings.

Dealmaker of the Week

HFF Secures $451M for Condominiums, Mixed-Use, Multifamily

Holliday Fenoglio Fowler, Houston, secured $451 million for commercial assets in Massachusetts, Tennessee and California.

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.

MBA CREF Connects Event at Hudson Yards Oct. 30

MBA CREF Connects regional events bring together commercial real estate professionals in markets across the country.

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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