Landlords of upscale properties across the United States are bracing for rough conditions in 2017 that will likely force them to slash rents and offer deep concessions as a glut of supply brings a seven-year luxury-apartment boom to an end. The Wall Street Journal reports that the turnaround follows … [Read more...] about 12.28.16: Luxury Apartment Demand Set to Fall in 2017
Archives for December 2016
12.23.16: Market Pros Expect CMBS Prices to Tighten
CMBS professionals are expecting the rule of supply and demand to positively impact CMBS bond prices in the first quarter of 2017. We previously reported that most CMBS issuers cleared out their inventory in anticipation of risk-retention rules effective December 24 (see our 12.7.16 article). This … [Read more...] about 12.23.16: Market Pros Expect CMBS Prices to Tighten
12.20.16: Structuring for Rollover Risk in CMBS Lending
One of the primary causes of CMBS conduit loan defaults for commercial properties is the loss of income when a tenant occupying a large portion of the property vacates or defaults on its lease payments. Typically, when a large tenant stops paying rent, the income from the property is no longer … [Read more...] about 12.20.16: Structuring for Rollover Risk in CMBS Lending
12.15.16: HHGregg Next in Long List of Struggling Retailers
In August, Indianapolis-based electronics and appliance retailer HHGregg announced that six stores in the Midwest, five stores in Wisconsin and one store in Illinois would close. Previously, the stores had been occupied by defunct retailers Circuit City and Linens & Things. Based on the chain’s … [Read more...] about 12.15.16: HHGregg Next in Long List of Struggling Retailers
12.9.16: CMBS Prices Hold Steady Amid Heavy Bond Issuance …
CMBS issuers are finding stable CMBS pricing despite heavy issuance as dealers rush to clear inventory ahead of risk-retention rules that become effective December 24. Six CMBS deals were in the market in the first week of December, a few of which have already priced in a range consistent with … [Read more...] about 12.9.16: CMBS Prices Hold Steady Amid Heavy Bond Issuance …
12.7.16: … But a Busy CMBS Market Now Leaves a Hole for First-Quarter 2017
CMBS issuance for the beginning of 2017 looks very weak because CMBS issuers are clearing out loan inventory this month in anticipation of risk-retention rules effective December 24. According to a review by Commercial Mortgage Alert (CMA), only seven transactions totaling $6.4 billion are in the … [Read more...] about 12.7.16: … But a Busy CMBS Market Now Leaves a Hole for First-Quarter 2017
12.3.16: SBA Improves Cash-Out 504 Refinance Program
In December 2015, Congress approved a change to the SBA 504 program to allow refinanced properties to be eligible for the program. Prior to the change, the program was available for purchase transactions only. The summary of the rules at time of approval in December were as follows: The commercial … [Read more...] about 12.3.16: SBA Improves Cash-Out 504 Refinance Program
