• Eight Must Reads for the CRE Industry Today

    Eight Must Reads for the CRE Industry Today (June 15, 2020)

    There are signs of increasing stability in the CMBS market, reports Seeking Alpha. A lawsuit in the state of Washington accuses two commercial real estate investors of running a Ponzi scheme, according to the Seattle Times. Bisnow writes on how the first black “Bachelor” in the show’s 18-year history is a broker from CBRE. These are among today’s must reads from around the commercial real estate industry.
    1. Brookfield CEO Sees ‘Deal Opportunities’ on the Horizon “Brookfield CEO Bruce Flatt says the company takes a “long-term view” of the outlook for retail investments…. Flatt sees the retail sector adapting to necessary changes as the world begins taking baby steps in restarting the global economy.” (Sourcing Journal)
    2. The First 100 Days: CMBS After COVID-19 “It is perhaps because of these measures - coupled with a slowly reopening US economy - that data is starting to point to a recovery in some areas. US hotel occupancy steadily rose in April and May, from 30.3% in mid-March to 35.4% in mid-May. CMBS conduit AAA spreads has tightened by 60% to 135 bps from 330 bps in late March. And CMBS issuance is another bright spot, with five deals issued in May totaling $3.8 billion.” (Seeking Alpha)
    3. COVID Will Accelerate Property Repurposing “In many ways, COVID-19 is accelerating transitions that had already been occurring in the commercial real estate world. ‘People think we should open up the economy sooner,’ says Newmeyer Dillion partner Mike Krueger. ‘But I don’t think anybody’s saying that this isn’t going away anytime soon.’ Ultimately, Krueger predicts that COVID-19 will force “some very creative repurposing of properties.” (GlobeSt.com)
    4. Can CRE CLOs recover from the pandemic? “’Considering the unpredictable nature of the current market disruption and that the sector will need time to find its footing, we could potentially see overall issuance volume decline 40% or more from last year’s impressive total,’” according to Trepp. (The Real Deal)
    5. Suit alleges Bellevue real estate investors led long-running, cultlike Ponzi scheme in China “Two Bellevue residents have been sued by eight people who say they were duped into a vast, highly organized Ponzi scheme based in China to finance expansion of the pair’s Seattle-area commercial real estate empire. The suit, filed in King County Superior Court, alleges that in classes in dozens of cities across China, Golden Sun Finance Education “brainwashed” would-be investors, many from modest backgrounds, into purchasing property on credit, sinking them deep into debt. (The Seattle Times)
    6. Asia’s real estate investors find escape from coronavirus in sheds and beds “Judging by the appetite for deals displayed by the property arm of German insurance giant Allianz, though, there are evidently some bright spots in Asian real estate. In the last several weeks alone, Allianz Real Estate has acquired a logistics portfolio of four Aldi distribution centres in Australia, in a joint venture with a local investor, and a collection of prime multifamily residential assets in Tokyo.” (South China Morning Post)
    7. China May Property Investment Quickens, Sales Rebound “Real estate investment and sales in China both quickened in May, pointing to continuing momentum as the property sector gradually recovers from the impact of the coronavirus outbreak.” (The New York Times)
    8. CBRE Broker Is First Black ‘Bachelor’ In Reality TV Show's History “CBRE broker Matthew James, 28, was named the first black male star of The Bachelor in the reality show’s 18-year history. The North Carolina native played wide receiver for Wake Forest University from 2012-2014, had a brief stint trying to stick in the National Football League before making his way into banking, then commercial real estate.” (Bisnow)