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Real Estate Roundup 5.4.20

Ken Caplan, Kathleen McCarthy, and Jon Gray (Credit: Fortune)

Real Estate Roundup:

We are still very early… be patient and selective

Blackstone President Jon Gray doesn’t expect buying opportunities in direct real estate to come up for at least a year. He said, “It’s too early…. What we’ve done in real estate so far is buying debt at a discount, and some public equities. That’s really the initial phase. Then the next thing you’ll see is some rescue capital needs, and we’ll start to address some of that. And then after some of the weight of this comes through the system, in some cases, there’ll be special servicers from whom you take over assets.” 

  • Historical anecdote: “People will run through their reserves, then you’ll begin to see assets trade. We saw that happen really, it took a year after the 2001 downturn. It took a year basically after 2008. That first year after the shock is generally pretty slow in terms of deployment. And then things start to pick up. (Bisnow)


  • New York Community Bank announced that a quarter of its $31.3 billion multifamily loan portfolio is currently in deferral, but rent collections were better than expected… Smaller landlords getting hit hardest: Just 6 percent of residential buildings with more than 100 units are in deferral. But smaller and mixed-use buildings with retail components are experiencing much higher rates of deferral. (DailyBeatNY)


  • Construction software company, Procore Technologies has postponed its planned IPO. Procore posted a net loss of $83 million on revenue of $289 million in 2019. (Bloomberg)

Other news 

  • States that halted construction work in March are allowing contractors to return to job sites. After completing work started this year, though, contractors say they see a drought for new jobs forming as property owners, banks and real-estate developers grow cautious until confidence in the longer-lasting economic recovery becomes stronger. Construction is typically one of the last industries to deteriorate during a recession and one of the last to bounce back in the aftermath, because of the time it takes to plan, finance and build projects. (WSJ)
  • Richard Baxter, Yoron Cohen and Scott Latham, Colliers International’s top investment-sales trio, are leaving the firm. (TRD)

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