Orest Mandzy is managing editor at Commercial Real Estate Direct.
Articles by orestmandzy
- Alternative Lenders Moving into the Mainstream
Published on July 17, 2017 in Capital Markets
Alternative, or nonbank, lenders are filling in gaps in the mortgage world where they find them, whether it be the result of increasing capital requirements for banks, consolidation in the banking sector, or a pullback by commercial mortgage–backed securities lenders. Last year alone, the five largest players in the sector collectively funded some $20 billion of interim loans. Plus, interest rate survey data from Trepp.
- Number of CMBS Lenders Dropping in Risk Retention Era
Published on May 30, 2017 in Capital Markets
As job growth in the professional services sector has increased substantially over the past several years, office real estate investment trusts (REITs) have benefited from strong leasing fundamentals. However, more office construction and oversupply concentrated in major metro areas such as New York City, Houston, and Washington, D.C., continue to concern those in the market. Plus, interest rate survey data from Trepp.
- Apartment REITs with New York Exposure Competing with New Supply
Published on May 01, 2017 in Capital Markets
Real estate investment trusts that specialize in the multifamily sector, particularly those with an exposure to the high-end sector in New York City, continue to struggle in the face of new construction. Plus, interest rate survey data from Trepp.
- Nontraded REITs Raise Lowest Volume of Capital in 14 Years
Published on April 24, 2017 in Capital Markets
The departure of AR Global Investments from the nontraded real estate investment trust world, coupled with uncertainty surrounding substantial pending regulations, has put a sizable damper on the ability of the nontraded REIT sector to raise capital. According to Summit Investment Research, $4.8 billion of equity was raised by sponsors of 35 entities last year, the lowest volume in 14 years. Plus, interest rate survey data from Trepp.
- Mortgage Originations Decline in 2016 as Sales Volumes Also Dip
Published on April 10, 2017 in Capital Markets
Only $490.6 billion of commercial and multifamily housing mortgages were originated last year, according to a survey conducted by the Mortgage Bankers Association, 2.7 percent lower than the $504 billion of originations in 2015. The likely cause of the decrease was the 11 percent drop in property sales volume last year. Plus, interest rate survey data from Trepp.
- $1.7 Trillion Earmarked for CRE Sector for 2017
Published on March 27, 2017 in Capital Markets
A recent survey of investors conducted by CBRE indicated that a lack of liquidity in the commercial real estate (CRE) market should not be a concern. Last year, $895 billion of capital poured into commercial real estate globally. While that was down 9 percent from 2015, it was still the second-highest yearly volume for the sector since 2007, when just more than $1 trillion poured in. Plus, interest rate survey data from Trepp.
- U.S. Hotel Market Fundamentals Primed for a Slowdown
Published on March 06, 2017 in Capital Markets
The U.S. hotel market has experienced significant growth over the past five years, but it is looking at a substantial slowdown as a result of the increase in the supply of rooms. The growth in supply has been picking up speed as operating fundamentals have consistently improved, but it’s no surprise that fundamentals would be soon pressured. Plus, interest rate survey data from Trepp.
- Growth Predicted for Commercial Mortgage Lending in 2017
Published on February 27, 2017 in Capital Markets
Last year, $502 billion in U.S. commercial mortgages was originated. That was down slightly from the $504 billion originated the year prior and well shy of the $537 billion that the Mortgage Bankers Association (MBA) had predicted. The MBA is forecasting $515 billion of lending activity for 2017, which would top the origination record of $508 billion set in 2007. Plus, interest rate survey data from Trepp.
- Hotel REITs Trading at Prices below Net Asset Values
Published on June 27, 2016 in Capital Markets
The overwhelming majority of hotel real estate investment trusts (REITs) are trading at prices that represent discounts to their net asset value, as has been the case for more than a year now. The thinking in some circles is that the hotel sector is approaching its cyclical peak. Plus, interest rate survey data from Trepp.
- REITs Continue to Tap Unsecured Notes Market
Published on June 29, 2015 in Capital Markets
This year, real estate investment trusts (REITs) have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That is more than they raised during the previous five years. The low rates have allowed REITs to issue ten-year bonds with coupons as low as 2.75 percent. Plus, interest rate survey results from Trepp.