Although hotel property values have dropped as much as 50% from their peak in 2007, ratings agency Fitch forecasts that over the next 12 to 18 months there will be an increase in distressed asset sales, leading up to the largest concentration of CMBS hotel maturities in 2011 and 2012.
Deterioration in property cash flow, erosion of reserves to cover shortfalls in debt service and little credit to refinance maturing mortgages all contributed to a higher default rate on commercial real estate mortgages held by depository institutions in the third quarter. That’s according to New York-based Real Estate Econometrics, which analyzed data recently published by the Federal Deposit Insurance Corp. (FDIC).
The New York Court of Appeals, in a 6-1 decision, has ruled that the state can seize from private owners the remaining land needed for developer Bruce Ratner’s massive mixed-use project, Atlantic Yards in Prospect Heights, Brooklyn.
While sagging credit conditions were initially responsible for the weakened commercial real estate capital markets, today poor and declining fundamentals are adding to the problem, according to Reis economist Ryan Severino.
Although delinquency rates for property types underwritten by commercial mortgage-backed securities rose to 3.96% at the end of October, the life insurance sector should be able to manage its near-term exposure to losses related to commercial real estate, Fitch Ratings reports.
American’s belief in global warming and its human causes has begun is waning. That’s the conclusion of the latest national survey by the Pew Research Center for the People & the Press, which revealed that just 57% of respondents today say there is solid evidence of rising global temperatures compared with 71% who held that same belief in April 2008.
Hamann Construction, an El Cajon, Calif.-based general contractor, recently achieved LEED Gold certification from the U.S. Green Building Council on a 134,946 sq. ft. build-to-suit cold storage facility occupied by Innovative Cold Storage Enterprises Inc. (ICE).
The past two years have been brutal for U.S. businesses and their employees. That reality has trickled down to commercial real estate owners and landlords who have been grappling with how to pay debt service on properties with rising vacancies and falling rents.
On the 15th floor of his office building overlooking Atlantic Station, Jim Jacoby sits in the conference room, the sleeves of his plaid shirt rolled up almost to his elbows. Site plans, charts and renderings fill the perimeter of the room.
A total of 17 private equity real estate funds worldwide raised $4.9 billion in third quarter 2009, the lowest fundraising total for a quarter since the third quarter of 2003, when 17 funds raised $3.2 billion, reports London-based research firm Preqin.