Goooood Morningggg!

Today’s top story is the FDIC hiring Newmark to market Signature Bank’s CRE loan portfolio consisting of primarily NYC multifamily loans. Diversified Healthcare Trust (NASDAQ: DHC) and Office Properties Income Trust (NASDAQ: OPI) call it quits on their proposed merger. Yellow Corp trucking company is seeking to back out of its leases as it continues working through its bankruptcy. The economy continues to outperform expectations causing Fed to double the US economic growth outlook. Mortgage applications drop as housing hits worst affordability level since 1984. And finally, the Government could be facing another shutdown at the end of the month if legislation is not passed with regards to spending.

If you are a follower and like this newsletter then please share with work friends and any other CRE professionals. If you have feedback then feel free to fill out the feedback form or slide into the DMs on Instagram (@propmemo_ra)

Interested in sponsoring? Then get in touch with us

Capital Markets

Market News

• Fed set to double its economic growth forecast after stronger than expected reports on consumer spending, residential investment, and job creation (Bloomberg)

• Mortgage application in the US fell to the lowest level since 1995 following a 2.1% decrease in applications since last week (Bloomberg)

• Housing affordability is at its worst level since 1984 according to Black Knight research with payments making up 38% of a household’s income (realtor.com)

• Lumber prices rose by nearly 10% last Friday despite the increase in mortgage rates and decrease in housing demand (Yahoo)

• US government will shutdown at midnight on September 30th if congress does not pass spending legislation. Federal Emergency Management running low on money as a result of increased natural disasters (CNBC)

• US Treasuries moved up on Tuesday after better than expected economic data. Fed commented that market should assume central bank is finished with rate-hike cycle (Yahoo)

CRE Headlines

• The FDIC has begin marketing Signature Bank’s $33bn real estate loan portfolio. The majority of the portfolio consists of multifamily assets located in NYC, with $15bn being secured by rent stabilized or rent controlled apartments. Marketing will take place over the next 3 months with Newmark as the advisor (FDIC)

• Diversified Healthcare Trust (NASDAQ: DHC) and Office Properties Income Trust (NASDAQ: OPI) mutually agree to call off merger agreement (Bisnow, OPI)

• Prime Group Holdings, LLC agreed to pay $20.5mm in fines after being charged with failing to disclose the CEO’s ownership of the brokerage firm which was used in connection with Prime Storage Fund II’s acquisition of self storage assets (PIOnline)

• Yellow Corp., the Nashville-based trucking company currently in chapter 11 bankruptcy, is seeking to back out of 37 leases including truck terminals, offices, warehouses, and storage yards (Bisnow)

• Niche industrial assets such as outdoor storage, cold storage, and EV charging facilities are primed for growth in the sector (GlobeSt)

• The Federal Department of Health and Human Services proposed new staffing requirements, which would require nursing homes to have a registered nurse on site 24/7 and 3 hours of care per resident per day (GlobeSt)

Deals Deals Deals

Sales

• NYU buys 209-unit Kips Bay apartment building in Manhattan from Verbena Road Holdings for $210mm (TheRealDeal)

• Velocity Venture Partners buys 196k sf industrial building in Lawrence Township, NJ for $12mm (Bisnow)

• Newbond Holdings acquires a 130-key hotel under the Aloft flag in Tampa, FL (HotelManagement)

Debt

• Keystone funds $39mm construction loan for 300-bed, 100-unit, Georgia Tech student housing development by Dezhu (CommercialObserver)

• The Atlantic Companies refinance their $59mm construction loan on a 185k sf office asset in Atlanta, GA. Morning Calm Office Finance funded the loan (CommercialObserver)

• Reap Capital secures $16.5mm Fannie Mae loan for 164-unit multifamily acquisition in Grand Prairie, TX. The loan was on a 5-year term with 35-year amortization (REJournals)

Developments

• Chevron (NYSE: CVX) buys 77 acres within Bridgeland Central’s multi-phase campus north of Houston, TX. The land was acquired from Howard Hughes Corp (NYSE: HH), the master developer for Bridgeland. The land could potentially be developed into an R&D campus according to Chevron’s head of corporate real estate (REBusinessOnline)

• Mount Sinai buys 5.6 acre development site for $32mm near Miami International Airport (bizjournals)

Capital Raising

• Crosstree Real Estate raises £500mm to invest in deals ranging from opportunistic to core across the UK (Crosstree)

• Rent Butter raises $3mm in seed financing round for it’s tenant screening solution for workforce and affordable housing. The round was led by RET Ventures ESG Fund (Pulse2)

Leasing

• Law firm, Greenberg Traurig, renews 128k sf office lease in Well Fargo Center in Miami, FL (CommercialObserver)

• Air & Space Forces Association signs 31k sf lease in mixed-use shopping center in Arlington, VA (CommercialObserver)

Meme Summary