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Volume 17 | Issue 37 | Thursday, September 12, 2019

The Lede


MBA Forecasts Record Commercial/Multifamily Mortgage Originations, Multifamily Lending

The Mortgage Bankers Association forecasts commercial and multifamily mortgage bankers will close a record $652 billion of loans backed by income-producing properties this year, 14 percent higher than last year's record volume ($574 billion).


Top National News

Mortgage Bankers Predict Commercial, Multifamily Will Reach New Highs

National Mortgage News, Sept. 10, 2019--Bonnie Sinnock (subscription)
Lower interest rates are expected to drive financing secured by income-producing properties to new heights by year-end, according to the Mortgage Bankers Association.

Long Hotel Rally Losing Steam as Supply Swells, Business Travel Falls

Wall Street Journal, Sept. 10, 2019--Esther Fung (subscription)
A nearly decade-long rally for the hotel business is showing signs of petering out. Hotel owners in large cities say they are getting squeezed by weaker business-traveler demand, higher labor costs and a crush of new hotel projects that is weighing on room rates.

Beyond "Best Efforts": Why Commercial Real Estate Needs to Catch Up on Diversity

Urban Land magazine, Sept. 9, 2019--Kirk Sikes, Evan Mitchell, Sommer Heyman
In commercial real estate, we are rewarded for staying ahead of the curve and identifying opportunities that others miss. If we refuse to acknowledge the competitive advantage that diversity offers in our pursuit of returns, we are willingly accepting lower yields and additional risk.

The Problem In The Disparity In Access To Multifamily Capital

Forbes, Sept. 5, 2019--Blake Janover
Although apartment loans are available for many, due to lack of product education, there simply isn't enough adoption in secondary and tertiary markets as folks continue to rely on local banking relationships as their primary source of senior debt for multifamily financing.

Amazon's New Multistory Warehouse Aims to Cut Delivery Times

Wall Street Journal, Sept. 10, 2019--Keiko Morris (subscription)
Amazon agreed to take space in a first-of-its-kind three-story warehouse, a new type of distribution center that could reduce delivery times in congested cities to hours rather than days. While common in densely populated Asian and European cities, modern warehouses with multiple floors have been absent until recently in the U.S., where higher land and construction costs deterred developers.

China's Anbang to Sell U.S. Hotels for More Than $5.8 Billion

Wall Street Journal, Sept. 10, 2019--Craig Karmin, Konrad Putzier (subscription)
A Chinese insurer has agreed to sell a luxury hotel portfolio for more than $5.8 billion. Mirae Asset Global Investments, part of a South Korean financial services company, agreed this week to buy the 15-hotel portfolio from Anbang Insurance Group Co.

Dealmaker of the Week

Meridian Capital Group Arranges $60M

Meridian Capital Group, New York, arranged $59.5 million in financing for two New York mixed-use properties.

People in the News

Colliers International Appoints Janus to Lead Healthcare Services

Colliers International Group announced Shawn Janus joined the company as U.S. National Healthcare Director.

News and Trends

Wells Fargo, PNC/Midland Lead MBA 2019 Mid-Year Commercial/Multifamily Servicer Rankings

The Mortgage Bankers Association released its mid-year rankings of commercial and multifamily mortgage servicers' volumes as of June 30, showing Wells Fargo Bank NA, PNC Real Estate/Midland Loan Services, KeyBank NA, Berkadia Commercial Mortgage LLC and CBRE Loan Services with highest volumes.

CREF Highlights

Commercial and multifamily developments and activities from MBA relevant to your business and our industry.

CMBS Delinquency Rate Reaches Another Post-Crisis Low

The commercial mortgage-backed securities delinquency rate fell again in August, setting another post-crisis low in the process, reported Trepp LLC, New York.

Hotel Performance Seen Decelerating Through 2020

An expected slowdown in the nation's economy has CBRE Hotels Research lowering its outlook for the lodging sector.

First-Half CRE Construction Starts Slip

Dodge Data & Analytics, New York, reported commercial and multifamily construction start volume totaled $101.4 billion during first-half 2019, down 6 percent from $107.4 billion in 2018's first half.

Predicting Retail's Future

The changing retail landscape will create new winners and losers, and retailers and landlords who understand consumer expectations will be more successful, said JLL, Chicago.

Commercial/Multifamily Briefs

Private mortgage lender BridgeCore Capital, Beverly Hills, Calif., expanded its commercial loan program to include a complementary second mortgage/mezzanine loan product for borrowers seeking short-term bridge financing on commercial properties.

MBA News

MBA Education CCMS Written Exam Prep Course Starts Oct. 11

MBA Education's Commercial Certified Mortgage Servicer Written Exam Prep Course begins Friday, Oct. 11 and will run through Friday, Nov. 22.

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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