Good Morning All!

WeWork files for Chapter 11 Bankruptcy, Capital One is looking to unload non-performing CRE loans, a mortgage giant suffers a cyberattack, and the actor’s strike impacts earnings for a REIT. 10-year treasury yields dropped after last week’s news from the Fed and the jobs report, 30-year mortgages rates followed suit, and a new report shows China is becoming the world’s largest debt collector with many of its loans to developing countries coming due.

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Capital Markets

Market News

• 10-year treasury yields dropped on Tuesday as investors wait for commentary from Fed Chairman and other Fed policymakers on Wednesday and Thursday. Last week rates remained unchanged by the Fed, with jobs data released later in the week showing the market is cooling. This has many waiting for comments from the Fed as to the latest jobs data will impact guidance (CNBC)

• 30-year mortgage drops to five-week low (Investopedia)

  30-Year Mortgage Rate Average

  

• Bridgwater Co-CIO says he is concerned with the U.S.’s ability to rollover its existing debt. With 27% of the debt held by foreign investors and 18% by central banks there is geopolitical risk to getting new debt issued (MorningStar)

• Developing countries owe China at least $1.1tn, with nearly half of the loans due as borrowers struggle. Data showed nearly 80% of China’s lending portfolio is supporting countries in distress. 55% of the loans have entered repayment periods changing China from the world’s largest lender to the largest debt collector. In 2021 there were at least 57 countries with outstanding debt to Chinese state-owned creditors that were in financial distress (CNNBusiness)

CRE Headlines

• WeWork files for Chapter 11 Bankruptcy. Leading up to the filing, WeWork entered a Restructuring Support Agreement with financial stakeholders representing ~92% of secured notes to drastically reduce existing funded debt and expedite the restructuring process. Location outside of the U.S. and Canada are not part of the process (BusinessWire)

• Capital One looking to offload nonperforming office loans tied to New York City real estate. The bank currently is marketing a $120mm portfolio backed by five office assets in NYC’s NoMad that went into default in May. There is also a $71mm portfolio of nine multifamily assets with debt maturing in 2024 that is being marketed (Bisnow)

• Mr. Cooper, a Texas-based mortgage giant, reported a cyberattack last week that affected its payment systems. The mortgage giant is offering customers with alternative methods of making payments after its site went down (TheRecord)

• Hudson Pacific, an L.A.-based REIT known for its production studios, says strikes have cost it $100mm after reporting lower revenue in Q3 (CommercialObserver)

Deals Deals Deals

Sales

• Retail: An investment fund managed by Morgan Stanley Real Estate Investing and Saxum Real Estate acquired a 1.2mm sf, seven-building portfolio from Urban Edge Properties for $218mm in East Hanover, NJ. The deal was structured as a 1031 with proceeds used to partially fund Urban Edge’s acquisition of a $309mm two-shopping center portfolio in Boston, MA from SITE Centers (commercialsearch)

• Industrial: Ocean West Capital Partners buys a five logistics assets in California’s Inland Empire for $100mm and totaling 1.8mm sf (OceanWestCP)

• Student Housing: Investcorp acquires a $90mm, 245-unit, 850-bed student housing asset in Atlanta, GA from Vesper Holdings. The buyer obtained a three-year, $62mm loan from MetLife Investment Management (connectcre)

• Industrial: Stag Industrial acquires two industrial assets totaling 157k sf in California’s Inland Empire for $36mm from Jupiter Holdings (CommercialObserver)

Debt

• Multifamily: Akara Partners obtains a $101mm bridge loan from MF1 Capital to refinance a 420-unit co-living apartment building in Nashville, TN (MHN)

• Senior Housing: Shenandoah Valley Westminster-Canterbury secured a $53mm in bond financing for a senior housing development outside of Washington D.C. from Ziegler (REBusinessOnline)

• Mixed-Use: The Horizon Group secures a $48mm construction loan from Hapoalim Bank for a mixed-use development in Miami, FL. The project will have 175 apartment units, with 70 for assisted living, a six-story mall, and a parking garage (CommercialObserver)

Developments

• Industrial: Texas Instruments breaks ground on an $11bn semiconductor facility in Lehi, UT. The 275k sf facility is expected to open in 2026 (commercialsearch)

• Industrial: A JV between Creation and Clarion Partners acquired nearly 100 acres in Phoenix, AZ to develop a $250mm industrial park (REBusinessOnline)

• Senior Housing: A JV between Housing Trust Group and AM Affordable Housing breaks ground on a $37mm, 95-unit affordable senior housing project Miami, FL (REBusinessOnline)

• Industrial: Scannell Properties breaks ground on a 479k sf distribution and manufacturing facility in Salem, OR. The asset is a build-to-suit for Gensco Inc. (commercialsearch)

• Data Centers: Databank is developing a 120-MW data center in Atlanta, GA. The developer acquired a 95-acre site to develop the 1mm sf facility (commercialsearch)

• Mixed-Use: Tishman Speyer breaks ground on 900k sf mixed-use project in Boston, MA. The research campus sits on a nine-acre site adjacent to Harvard Business School (REBusinessOnline)

• Multifamily: Camden Property Trust opens 420-unit multifamily building in Durham, NC (REBusinessOnline)

Leasing

• Office: Creative Artists Agency signs a 75k sf lease in Southwest Value Partners’ Nashville Yards project in Nashville, TN (REBusinessOnline)

• Office: MIAX, a securities exchange, signs a 38k sf lease in Miami’s 545wyn office building (CommercialObserver)

Meme Summary

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