Search Results: Freddie Mac
Commercial, M-F Delinquencies Rise, but with Silver Lining
Commercial and multi-family loan delinquencies increased during the fourth quarter of 2008, as the contracting economy and continuing credit crisis stressed property fundamentals, according to the “Commercial/Multi-family Delinquency Report” released by the Mortgage Bankers Association.The report found that the 30+ day delinquency rate on loans held in CMBS rose 0.54 percentage points to 1.17 percent. The 60+ day delinquency rate on loans held in life insurance company portfolios rose 0.01 percentage points to 0.07 percent. The 60+ day delinquency rate on multi-family loans held or insured by Fannie Mae rose 0.14 percentage points to 0.30 percent. The 90+ day delinquency…
Economic Update – Unemployment Creeps Up in Every State But One
The U.S. Department of Labor released state-by-state unemployment numbers on Wednesday, and fully 49 of the 50 states experienced higher unemployment in January compared with December. The sole exception was Louisiana, which fell from 5.5 percent to 5.1 percent. Continuing revitalization of the state, which began in the aftermath of Hurricane Katrina, gets the credit for those positive numbers.Michigan, hub of the auto industry, still has the highest unemployment rate: 11.6 percent. South Carolina, Rhode Island and California are next, all with rates above 10 percent (the national average is currently 8.1 percent). Wyoming, whose economy is driven by mineral…
$65M New Jersey Office Loan Shows Money Still Available—If Property is Right
With the finance industry on its knees, securing a loan for a suburban New York City office property is not the cakewalk it used to be. However, lenders are still willing to fork over the funds for certain area assets, like Livingston, N.J.’s 385,000-square-foot Eisenhower Corporate Campus, which recently attracted a $64.8 million financing package. Property owners Eastman Cos. and The Sagner Cos. turned to Holliday Fenoglio Fowler L.P. to mine the market for money–and the commercial real estate capital intermediary came through with a $44.7 million adjustable-rate loan from Wells Fargo and TD BankNorth, and just over $20 million…
Colonial Properties Bucks Trend, Snagging $350M Credit Facility from Beleaguered Fannie Mae
Sizeable loans are eluding most real estate concerns these days, but Colonial Properties Trust has proven to be one of the exceptions. The Birmingham, Ala.-based REIT just closed a $350 million credit facility originated by PNC ARCS L.L.C. for repurchase by troubled mortgage lender Fannie Mae, which, despite a 2008 loss of $58.7 billion, is apparently not shying away from big deals. Colonial’s new credit facility, secured by 19 multi-family assets encompassing an aggregate 6,565 residential units, comes with a 10-year term and a 6.04 percent weighted average fixed interest rate. The REIT will use the proceeds to pay down…
Economic Update — Plan Aims to Stanch Foreclosures
On Tuesday, it was the stimulus in Denver. On Wednesday, it was the Homeowner Affordability and Stability Plan in Mesa, Ariz. (Thursday, Detroit?) Unfortunately, “HASP” doesn’t make for a snappy acronym, but it is the Obama administration’s name for its newly announced plan to slow down the hemorrhaging of the residential real estate market, especially spiking foreclosure rates, and especially in places like Arizona. “In the past, if you found yourself in a situation like this, you could have sold your home and bought a smaller one with more affordable payments,” the president said, recalling those carefree pre-credit freeze days…
Seniors Housing Loans, Capitalization Rates Feel Credit Crunch
As the economy continues its downward spiral and credit markets suffer, loan performance and capitalization rates in seniors housing and care feel the heat, too, according to third quarter 2008 data tracked by the National Investment Center for the Seniors Housing & Care Industry (NIC).Each quarter, financial and performance data are collected by NIC from the nation’s leading senior living lenders, owners/operators and appraisal professionals and posted as the NIC Key Financial Indicators™ (KFIs) on the organization’s Web site.Loan volume placed in the industry has been in a downward trend since the first quarter of 2007 when it reached $2.28…
Financial Market Update: M-F Sector Sees Rent Growth
As the financial markets and economy continue to struggle, the multi-family real estate sector remains relatively healthy. According to Marcus & Millichap Real Estate Investment Services, rental growth for multi-family properties nationwide grew 3 percent in 2008, and rental growth is expected to increase by about 1.5 percent this year. Occupancies nationwide stood at about 94 percent last month, and Marcus & Millichap is predicting a drop in that figure of only about 1 percent in 2009. None of that makes multi-family finance deals easy, however. “There’s no such thing as a routine deal any more, not in the current…
PNC Stays Active in Turbulent Times, with Deals Like $214M for Jersey M-F
Despite the turbulent times, big real estate loans are still being made and Pittsburgh-based PNC is among those that are actively doling out financing. PNC Real Estate Finance has arranged a $214 million construction loan for The Monaco, a luxury apartment project in Jersey City, N.J., with PNC Capital Markets L.L.C. leading the syndication of the deal with six other banks. Monaco North Urban Renewal L.L.C.–a joint venture involving Roseland Property Co., Prudential Insurance Co. of America, Garden State Development Inc. and Hartz Mountain Industries Inc.–was the recipient of the three-year loan. Roseland is the developer for the joint venture…
The Expert: Job Losses Dim 2009 Prospects
Apartments weathered the increase in competition from for-rent houses and condominiums relatively well through most of 2008, However, rising jobs losses will push vacancy up more dramatically in 2009.During the fourth quarter, apartment vacancy rose 40 basis points to 6.6 percent, bringing the year-over-year increase to 90 basis points. Markets hit hardest by housing, such as Phoenix, Tucson, Las Vegas and most Florida markets, registered the greatest increases in vacancy over the past year. Markets that held up best were those in which construction was minimal owing to land constraints or generally weaker economic conditions. San Francisco and New York…
Citigroup Troubles, Retail Woes Roil Market
Wall Street has been shrugging off bad economic news for a while now, but Wednesday felt like the good old days of last September and October, when the Panic of 2008 was in sell! now! mode. The Dow dropped more than 300 points briefly, ending down 248.42 points, or nearly 3 percent. The S&P 500 and Nasdaq lost even more by the end of the day, in terms of percentage: 3.35 percent and 3.67 percent, respectively. What spooked the markets? News about Citigroup, for one thing–gee, the bailout didn’t seem to help Citi all that much, it turns out. Citigroup’s…