The Federal Reserve is buying agency-backed mortgages — and though that’s not traditionally considered news, worth looking at is the sudden increase in acquisitions and lack of dispositions. Between July 6 and July 12, the Fed bought $5.656B in agency mortgage-backed securities, compared to $3.683B the week before. Earlier today, Reuters reported that Chair Janet Yellen said reaching 3% U.S. economic growth should be considered “quite challenging” in the current environment. (Via Reuters)
Following the “Google effect,” commercial real estate investors from the East Coast have paid $80M for a downtown San Jose office building nearby Google’s next campus expansion. The sale reportedly shattered previous price per sq. ft. records by nearly $90. Google has set out to build an 8-million-sq.-ft. “transit and tech” village situated nearby Diridon Station. Technology companies are following suit in leasing, and higher pricing expectations for San Jose commercial real estate are the latest investor talking point. (Via CBS Local)
Bridge lending, “transitional lending,” debt investment plays — what do these all have in common? Structures and terms that lend on future performance — not equity. Over the past two years, these types of financing having become increasingly popular. In Brooklyn, a DUMBO redevelopment project has just secured $150M in bridge financing. Investment specialist ACORE Capital provided financing to be used to complete construction, fund leasing and repay already-existing debt on a Jay Street project underway by Glacier Global Partners and Triangle Assets. The property is expected complete in the fall, and “reportedly will cater” to TAMI tenants. (Via Commercial Property Executive)
More News to Note:
An Update on the 1031 Debate in Congress
Looking at the Implications of Fed Balance Sheet “Normalization”
