A signature financial instrument of the pre-financial crisis real estate boom is about to come due. And for some large real estate owners – particularly in the Midwest and Southeast – that could mean trouble.
More than $53 billion out of $156 billion worth of securitized commercial mortgages that are set to mature in the next two years may find difficulty refinancing or require more investor capital, according to data compiled by Real Capital Analytics.
Read entire story on Yahoo Finance here.
Farmland is attracting growing interest from pension plans, hedge funds and even mom-and-pop investors as they seek to diversify assets and capitalize on an agriculture-industry slump that has pushed down land prices in some regions.
Financial-services giant TIAA-CREF announced Tuesday that it has raised $3 billion for its second global farmland-investment partnership, exceeding its initial target of $2.5 billion. The fund, which will invest in North and South America and Australia, has lined up commitments from institutional investors, including the New Mexico State Investment Council and the U.K.’s Greater Manchester Pension Fund.
Read entire article at Wall Street Journal here.
Borrowers continue to take care of upcoming loan maturities early by refinancing today—even if it means paying penalties in order to do so.
Low interest rates, rising property values and incomes, and a competitive lending environment are creating a perfect storm for borrowers looking to refinance maturing loans.
“All of those things are making it a great time to refinance,” says Jamie Woodwell, vice president of commercial real estate research with the Mortgage Bankers Association (MBA), a trade group. “We have seen borrowers working as much as they can to draw forward upcoming maturities and getting them refinanced today.”
Read entire article in National Real Estate Investor here.
Sears used to rule American retail.
But the troubled retailer’s sales are continuing to decline, falling nearly 14% in the most recent quarter. Shares at Sears Holding Corp. are at a multiyear low, and the brand is continuing to close stores.
The most troubling sign of all?
Sears isn’t trying to get better, Steven Azarbad, chief investment officer at Maglan Capital and an expert in distressed retail companies, told Business Insider.
At a time when real estate investors still have concerns about the future performance of many traditional property types, including office, retail and multifamily, some have started to set aside capital for alternative assets. Such assets, including student housing, seniors housing and medical office buildings, among others, have broad demographic trends supporting their success, proved immune to the recession and offer higher yields than comparable properties in other sectors. As a result, interest in these types of assets is expected to keep growing.
Immediately after the downturn, active investors stuck primarily with the five core property types because they were wary of taking on any level of risk, notes Spencer Levy, executive managing director with CBRE Capital Markets. Yet the cap rates on the best multifamily, office and retail buildings have fallen so low lately that it has become difficult to achieve decent yields. At the same time, investors ranging from REITs to pension fund advisors to private equity groups still have to fulfill their capital allocations to commercial real estate, which is why they are increasingly eager to acquire more specialized properties.
Read the entire article at National Real Estate Investor here.
To discuss commercial mortgage financing needs contact Liberty here.
Seven years after the financial crisis, private funds in the U.S. are extending their push into traditional banking.
So-called shadow lenders — asset managers that operate outside the banking industry’s regulatory oversight — have been making an increasing number of leveraged loans to midsize businesses.