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Real Estate Roundup 7.17.20

Real Estate Roundup:

Blackstone Group is closing a real estate fund that used leverage to load up on commercial mortgage backed securities. The Blackstone Real Estate Income Master Fund, with about $1.1 billion of total investments at year-end will sell the assets and distribute the proceeds to shareholders. Its net assets have declined from almost $773 million at year-end to $553 million as of May 31.

  • Why it matters: CMBS delinquencies in the U.S. surged to 3.59% in June from 1.46% in May, the largest month-over-month increase on record. With consumers staying home and shopping online, hotels and mall-based retailers are missing mortgage and rent payments. (Bloomberg)

Luxury market update 

  • A dozen properties listed above $4 million went into contract in the first week of July, tying for the highest total in the pandemic period. A third of the properties were townhouses. The number was four more than last week and three more than the same week in 2019, illustrating the weakness in the market even before the coronavirus. (TRD+OlshanRealty)

Acquisitions

  • Related Companies’ has sold the two properties located at 1050 Wheeler Avenue and 1085 Colgate Avenue to an undisclosed buyer for a combined total of $13 million. The Wheeler Avenue building spans 66,000 SF and contains 60 rent-stabilized units, while the property at 1085 Colgate Avenue spans 26,400 SF and has 24 rent-stabilized units. (TRD)

Leasing 

  • A new menswear company, Estuniga, launched by an Instagram influencer, plans to relocate its headquarters from Florida to Sunset Park, Brooklyn. The firm signed a 10-year lease for 28,000 SF on the entire fifth floor of Bushburg Properties’ 132 32nd Street (AKA Briq Building). Asking rent was $29 per square foot. (Crain’s)

Other news 

  • In a year of financial firsts, this one stands out: Mortgage rates have fallen below the 3% mark. The average rate on a 30-year fixed mortgage fell to 2.98%, mortgage-finance giant Freddie Mac said Thursday, its lowest level in almost 50 years of record keeping. It is the third consecutive week and the seventh time this year that rates on America’s most popular home loan have hit a fresh low. The average rate on the 30-year mortgage stood at 3.72% at the beginning of the year and 3.81% a year ago. (WSJ)
  • The $52 Trillion Bubble: China Grapples With Epic Property Boom: Real-estate surge eclipses the one in U.S. housing in the 2000s; desperate buyers undeterred by Covid pandemic. (WSJ)

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