Author: Randybacon

J.C. Penney Closings Could Become a Critical Issue for Lower Quality Malls

by Randybaconin Real EstateLeave a Comment on J.C. Penney Closings Could Become a Critical Issue for Lower Quality Malls

Retail real estate financing

As struggling retailers seek to streamline their brick-and-mortar portfolios, massive store closings continue. But with anchor tenants that open mall owners to the risk of defaulting on their CMBS loans, store closures present even more of a challenge. The current wave of closings in the department store sector, for example, may put lesser quality malls at substantial risk.

Consider J.C. Penney. The department store chain recently announced 140 upcoming store closings, but could end up closing more locations, CNBC reports. Morningstar Credit Ratings analyzed the CMBS debt load on malls with exposure to J.C. Penney recently and found that as a collateral tenant, CMBS exposure to J.C. Penney totals $16.43 billion.

We spoke with Edward Dittmer, vice president of CMBS at Morningstar Credit Ratings, to shed more light on the firm’s findings and their significance for mall owners and retail investors.

View entire article in National Real Estate Investor.

Find out more about commercial real estate financing here or contact us to discuss your next opportunity.

NEW CRE PLATFORM ALLOWS INVESTORS TO SET IT AND FORGET IT

by Randybaconin Commercial Mortgage LendingLeave a Comment on NEW CRE PLATFORM ALLOWS INVESTORS TO SET IT AND FORGET IT

San Francisco-based AlphaFlow has launched the first automated real estate investment service of its kind. The firm, which specializes in passive online real estate investment, now offers AlphaFlow Managed Portfolios — where it will build, manage and rebalance a portfolio of 75 to 100 real estate loans for investors. It is basically a “set it and forget it” service for real estate investors. “For the first time, investors can 100% passively invest in a diversified real estate portfolio at any time. It is ultimately a simpler, more intelligent way to invest in real estate,” AlphaFlow CEO Ray Sturm said. “Our investors were happy with their returns, but we weren’t meeting all of their needs, so we stepped back and designed a new platform from the ground up.”

View entire article on Biznow.com website

If your looking for funding for a small commercial real estate loan contact Liberty Realty Capital to discuss your financing needs.

 

The CMBS Wall of Maturities—Cracking the CMBS Code

by Randybaconin Commercial Mortgage LendingLeave a Comment on The CMBS Wall of Maturities—Cracking the CMBS Code

Commercial mortgage refinancing

Let’s take a walk down commercial real estate memory lane. In 2007, life was good, you had a nice project throwing off good cash flow, cap rates were low, values were high and you hit the jackpot! You refinanced, you maxed out proceeds, you got cheap, fixed-rate, 10-year money. Heck, you may have even repaid your equity!

Then, later that year and “officially” for the next 18 months (but really, the next five years) came the Great Recession. You heard all the horror stories of failed real estate projects, failed banks, sponsors being sued, but you made it through, you were smarter than those guys, locked into cheap, non-recourse, long-term money, and you were good to go.

Unfortunately, now your loan is maturing and market conditions, such as increased interest rates and a lackluster recovery, are such that you cannot refinance or sell the property and generate the proceeds you need to pay off this wonderful loan. Don’t worry, you are not alone, you are now part of the $192.9 billion “CMBS Wall of Maturities.”

View entire article here in National Real Estate investor.

If you have a commercial real estate project in need of refinancing contact Liberty to discuss.

Will the Department Store Sector Survive?

by Randybaconin Real EstateLeave a Comment on Will the Department Store Sector Survive?

Sears Store

Post-holiday store closings are as dependable as the seasonal tree lightings and concerts that precede them. When department store analysts announced that store closings could number 550 in the next couple of years, the outlook cast yet another shadow over the brick-and-mortar segment of the retail industry.

But heavy shuttering of stores does not always portend doom, according to industry experts. Retailers are taking opportunities to reshape their merchandising strategies and companywide footprints in ways that will support their long-term profitability, the experts note.

View entire article regarding Retail Sector here in National Real Estate Investor.

If your looking to refinance a retail or other commercial property type contact Liberty Realty Capital.

 

Pittsburgh Mills Mall Sold For $100 At Foreclosure Auction

by Randybaconin Real EstateLeave a Comment on Pittsburgh Mills Mall Sold For $100 At Foreclosure Auction

 

TARENTUM, Pa. (AP) – Wells Fargo Bank has purchased one of the biggest indoor malls in Pennsylvania from itself – for $100.

That’s how much the bank paid for the 1.1 million-square-foot Galleria at Pittsburgh Mills on Wednesday.

The mall in Frazer Township, about 20 miles northeast of Pittsburgh, was sold at a foreclosure auction.

Wells Fargo foreclosed last year on the mall which opened in 2005. The mall was once worth $190 million but recently appraised at just $11 million and is slightly more than half occupied.

Wells Fargo foreclosed because Pittsburgh Mills Limited Partnership owed the bank more than $143 million on a 2006 loan.

View entire story hear at CBS Pittsburgh website

To contact us to discuss any financing needs visit us here.

 

A giant wave of store closures is wreaking havoc on shopping malls

by Randybaconin Real EstateLeave a Comment on A giant wave of store closures is wreaking havoc on shopping malls

Retail Malls

CoStar estimates that about 10% of retail square footage in the US is “obsolete.”

Macy’s and Sears collectively announced 218 store closures within the last week in a move that could cripple dozens of shopping malls across the US — and the problem is only getting worse.

On Sunday, The Limited, another mall-based retailer, suddenly shut down all 250 of its stores and laid off 4,000 employees.

Additional mass store closures are expected to be announced soon, as well as some possible retail bankruptcies, according to RBC Capital Markets analyst Brian Tunick.

Read entire article here in Business Insider.

Find out more about our financing options contact Liberty Realty Capital Group