• Eight Reads for June 22, 2020


    Eight Must Reads for the CRE Industry Today (June 22, 2020)

     
    More than $20 billion in CMBS loans has been transferred to special servicing, according to data from Fitch. Malls and stores are reopening without a federal system in place to check whether establishments have been involved in COVID outbreaks, reports Yahoo News. Mitchell Rudin has been appointed chairman and CEO of Savills North America. These are among today’s must reads from around the commercial real estate industry.
     
    1. TRD Insights: Pandemic has sent over $20B in CMBS debt into special servicing “The number of CMBS loans transferred to special servicers has ballooned during the coronavirus crisis, and has totaled $21 billion in the last 90 days. And most of those troubled loans are secured hotel and retail properties.” (The Real Deal)
    2. As businesses reopen and shoppers return, coronavirus is rebounding, but government isn't tracking retail-based outbreaks “With states around the country reopening, shoppers are returning to malls and visiting stores again, prompting worried public health officials to point to rebounding cases of infections in some regions. Yet despite the continued risk of the coronavirus, there is no system in place for tracking whether these establishments have been involved in an outbreak.” (Yahoo News)
    3. Mitchell Rudin Named North America CEO at Savills “Industry veteran Mitchell Rudin has been appointed as chairman and CEO of Savills North America, effective June 30. Rudin, who joined Savills in 2018 and became president on Jan. 1, 2019, succeeds Mitchell Steir, who has decided to step down after a 37-year career.” (Connect Real Estate)
    4. Brookfield Delays Payments While Asking Tenants To Pay Up “Asset manager Brookfield, which owns stakes in numerous malls, is demanding retailers pay back rent even as the Toronto-based investment group has missed mortgage payments.” (PYMTS.com)
    5. The demise of America’s malls can deal a blow to the towns that depend on them “When a mall goes dark, a community loses more than just a place to shop and grab a slice of pizza at the food court’s Sbarro. In many neighborhoods, the mall is an economic engine, hiring hundreds, if not thousands, of workers and providing a significant amount of dollars to the local tax base.” (CNBC)
    6. SL Green Co-CIO Isaac Zion to Leave New York Landlord in July “SL Green Realty Corp. Co-Chief Investment Officer Isaac Zion is leaving the New York landlord to pursue other opportunities…. Zion, who will stay through July 31 and has been co-CIO alongside David Schonbraun, joined the company in January 2007 as a managing director and co-head of its investments group. He led property acquisitions, joint ventures and dispositions during his tenure, according to his biography on the REIT’s website.” (Bloomberg)
    7. Real Estate Group Creates $250M Fund to Aid Cash-Strapped Firms “BREG, an affiliate of The Broe Group, is calling the fund its Strategic Investments Program, and it is designed specifically to mitigate disruptions in cash flow experienced by real estate properties affected by the COVID-19 outbreak.” (GlobeSt.com)
    8. Flex Office Sector Shows Signs of Bouncing Back: Q&A “Workthere’s Ted Skirbunt discusses the serviced office sector’s rebound as the year progresses following the pandemic’s irreversible impact.” (CPE)