• Interesting Articles for Tuesday

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    10 Must Reads for the CRE Industry Today (June 16, 2020)

     
    The Federal Reserve opened its Main Street Lending program for bank registration, reports Business Insider. 24 Hour Fitness is the latest retail tenant to file for bankruptcy, according to the Associated Press. These are among today’s must reads from around the commercial real estate industry.
     
    1. The Fed’s Main Street Lending Program Is Now Open and Encouraging Banks to Start Making Loans “The Federal Reserve's Main Street Lending program is open and ready for lender registration, the Federal Reserve Bank of Boston announced on Monday. Banks looking to lend to small and medium businesses are now able to register with the Boston Fed, which is the administrator for the $600 billion program with three separate lending facilities. ‘Lenders can find the necessary registration documents on the program site and are encouraged to begin making Main Street program loans immediately,’ the Boston Fed said.” (Business Insider)
    2. The Fed Says It’s Going to Start Buying Individual Corporate Bonds “The Federal Reserve is expanding its foray into corporate credit to now buy individual corporate bonds, on top of the exchange-traded funds it already is purchasing, the central bank announced Monday. As part of a continuing effort to support market functioning and ease credit conditions, the Fed added functions to its Secondary Market Corporate Credit Facility.” (CNBC)
    3. Grim Blame Game Over Virus Deaths in Besieged Nursing Homes “A grim blame game with partisan overtones is breaking out over COVID-19 deaths among nursing home residents, a tiny slice of the population that represents a shockingly high proportion of Americans who have perished in the pandemic. The Trump administration has been pointing to a segment of the industry — facilities with low federal ratings for infection control — and to some Democratic governors who required nursing homes to take recovering coronavirus patients.” (The Associated Press)
    4. 24 Hour Fitness Declares Bankruptcy, Expects to Reopen Most Gyms by End of June “24 Hour Fitness Worldwide Inc. declared for bankruptcy Monday, citing the "disproportionate impact" of the COVID-19 pandemic. The gym chain said it expects to secure about $250 million in debtor-in-possession financing, which should provide the company with enough liquidity to continue operations, including phased reopenings of its fitness clubs. The company expects to reopen most of its clubs by the end of June.” (MarketWatch)
    5. 25 Million Applications: The Scramble for NYC Affordable Housing “For more than five years, William Sencion did the same task over and over. He signed onto the New York City’s housing lottery site and applied for one of the city’s highly coveted, below-market apartments. Each time, he got the same response: silence. That was until late last year, when he was told that he might qualify for a one-bedroom unit in the Bronx. But first he had to prove his eligibility by printing a month’s worth of financial, banking and tax documents, along with a letter from his employer, and providing them in person to a marketing agent for the apartment.” (The New York Times)
    6. REBNY Lays Off Staff and Cuts Salaries Due to Coronavirus “The Real Estate Board of New York, the powerful real estate lobbying firm, laid off staff and slashed executives’ salaries because of a decrease in membership dues caused by the coronavirus pandemic, the organization confirmed.” (Commercial Observer)
    7. As Young Renters Move Back Home, Lost Rent Could Have Ripple Effect “Millions of young adults who moved back with their parents this year could lead to an estimated $726 million in lost rent, according to a Zillow analysis, which noted that the ripple effects ‘could have far-reaching consequences for the housing market.’” (GlobeSt.com, subscription required)
    8. New Chicago Office Building Is One of the First in the U.S. Designed for a Post COVID-19 Environment “Located in Chicago’s Fulton Market District, Fulton East (215 N. Peoria St.) is a 12-story, 90,000-square-foot office and retail building slated to open late summer 2020. The newly constructed development is also among the first commercial buildings specifically designed for a post COVID-19 world.” (Forbes)
    9. Cuomo Threatens to Shut Down NYC Again After Crowds Swell Outside Manhattan Restaurants “The crowds forming outside restaurants and bars in the midst of warm, summer weather have been well-documented, but the violations were particularly shocking this weekend. In one instance, East Village neighborhood blog EVGrieve posted a video depicting crowds of people at St. Mark’s Place on Friday night hanging out on the sidewalk and spilling onto the street. Many in the video aren’t wearing masks or standing at least six feet apart from other groups of people.” (Eater New York)
    10. EverWest Real Estate Closes Sale-Leaseback Deal “EverWest Real Estate Investors, of Denver, has completed a $37 million purchase-leaseback of Magnolia Point, a 210,345-square-foot Class A warehouse/distribution building in California’s Inland Empire West submarket. The building is at 1560 E. 6th St. in Corona, Calif., near the intersection of I-10 and I-15. The property is 100 percent leased by Amrapur Overseas Inc., whose lease with EverWest is for seven years. Amrapur is a designer and distributor of retail home fashion textiles, including bed linens, bath linens and curtains.” (Commercial Property Executive)