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Real Estate Roundup 4.17.20

(Credit: Brookfield)

Real Estate Roundup:


  • The Independent Budget Office, a nonpartisan agency, forecast on Wednesday that New York City would shed roughly 475,000 jobs in the 12 months that started April 1, resulting in an estimated tax revenue shortfall of $9.7 billion in fiscal years 2020 and 2021. (NYTimes)
  • April remittance data from this week detailed a handful of the largest single-asset single-borrower (SASB) hotel commercial mortgage-backed securities (CMBS) portfolio deals, comprising hundreds of assets across the U.S., that were transferred to special servicing. With the sheer volume of inquiries, master servicers are slowly working through requests to properly assess the needs of each respective borrower, with a mission to avoid creating a deluge of deals being sent to servicing. If a loan is 60 days delinquent, there’s typically a hard trigger transferring the deal to the special servicer. (CO)
  • The net operating income of rent-stabilized landlords fell in 2018 for the first time in more than a decade, according to a new report from the Rent Guidelines Board. The body released an annual analysis Wednesday on the state of the city’s nearly 1 million rent-regulated apartments. (Politico) 
  • Freddie Mac is extending the forbearance period for multifamily borrowers and beefing up the eviction ban requirement for landlords who receive the relief. In the program’s first week, 105 borrowers requested relief on $810.2 million in multifamily mortgages. (TRD)


  • Despite eliminating thousands of positions in the last six months, WeWork plans to keep cutting. New CFO Kimberly Ross: “Do not wait to be asked to cut expenses. Be proactive. If you see waste, eliminate it. If you see unnecessary spending, stop it.” (Bloomberg)

Other news 

  • Federal banking agencies released an interim ruling Tuesday that will allow financial institutions to temporarily close on certain commercial and residential loans without having an appraisal completed in advance. The rule will give banks up to 120 days after the loan is closed to conduct an appraisal or evaluation. Regulators are not allowing deferred appraisals for loans involving the acquisition, development and construction of real estate. (TRD)
  • Thousands of individuals who poured money into real-estate funds aimed at small investors are now trying to pull cash out during this period of economic turmoil. Some funds are putting the brakes on redemptions because they say they would have to start dumping property into a dysfunctional market at big losses to honor all their requests. (WSJ)
  • Warehouse developers are now helping some retail and logistics customers secure additional storage space as lockdowns trigger an upheaval in consumer buying patterns believe the rapid adjustments will give way to longer-term changes in how companies manage their supply chains… While e-commerce now accounts for about 3% of total U.S. grocery sales, “there are huge growth prospects” as housebound shoppers get used to ordering produce, meat and other perishables online.” (WSJ)
  • Morgan Stanley CEO James Gorman is hesitant to make predictions about the future with so much about the coronavirus pandemic still uncertain. One thing is clear, however: Morgan Stanley will have much less real estate. “We’ve proven we can operate with no footprint. Can I see a future where part of every week, certainly part of every month, a lot of our employees will be at home? Absolutely.” (Bloomberg)


  • A South American family has paid close to $27 million for eight units spanning a total of 11,000 square feet at GID Development Group’s Waterline Square on the Upper West Side. The buyers went into contract and closed on the all-cash deal on the same day. Douglas Elliman said their clients received a blended discount of more than 7% from the asking price of the units. (WSJ)
  • Premier Equities has sold a 70-year leasehold for the retail condo at 644 Greenwich Street to Pamela and Cary Roth for $10.2 million. The 9,500-square-foot space, located between Morton and Barrow Streets in the West Village, is currently subleased by child-care provider Bright Horizons. (CO+PincusCo)

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