New research by data firm Trepp finds multifamily commercial mortgage backed securities (CMBS) as one of the top-performing commercial real estate sectors in the past three years, showing growth momentum that has outstripped performance across property types. In fact, by year-end, about 10.3 billion in multifamily CMBS loans are expected to be originated, a 91% increased from 2017, according to Trepp. In a geographic analysis, Trepp examined consecutive year-end financials on 23,479 private-label multifamily loans in its database, compared against the U.S. Census Bureau’s nine census divisions. Apartment properties within the Mountain and Pacific regions took first and second place, respectively, in terms of NOI growth. “Growth remains elevated in the Pacific despite the ongoing housing affordability crisis in thriving tech and urban locales within California and Washington, meanwhile Mountain housing markets are still rebounding after a delayed recessionary recovery period,” analysts noted. (Trepp)
Real estate deals involving Bitcoin are far from commonplace, but investors in big cities are slowly dipping their toes into the cryptocurrency pool for property trades. This fall, NYC developer Ben Shaoul sold an 11,400-square-foot retail condominium at 389 East 89th St. for $15.3 million in Bitcoin. Meanwhile, a condominium at 146 West 57th Street is now asking $19.5 million in Bitcoin. And last year, investor Michael Komaransky sold his South Florida estate at 7350 Southwest 47th Ct. for about $6 million in Bitcoin. Brokerage site bitcoin-realestate.com lists about 265 North American properties available for trade in Bitcoin. The value of 1 Bitcoin as of Dec. 3 was 7,309.46, per Coinbase. (The Real Deal)
Atlanta’s retail market is shaping up as an intriguing long-term play, according to commercial real estate experts. Colliers International Senior Vice President Tony D’Ambrosio wrote in a recent column that, “Atlanta retail real estate is not only less expensive than other major U.S. markets, it’s also less expensive than many other retail markets in the Southeast. Atlanta’s rents are lower and its cap rates are higher than Nashville, Charlotte, Raleigh, Charleston, Orlando and many others. Plus, it’s a downright bargain compared to the traditional ‘institutional’ gateway markets.” The city’s thriving jobs market is helping drive performance of its retail real estate. Added Robert Fransen, president at Atlanta-based development firm Coro Realty, “we’re long on Atlanta retail, not only intown and along the BeltLine… the urbanization of retail is also taking place in Atlanta’s many high-quality suburban markets, which will also densify.” (REBusiness Online)
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Vornado Realty Trust Scores $800M Refinance on 650 Madison Avenue Office Building
Skanska Commercial Development Opens First Los Angeles Office, Plans Beverly Hills Office Project