Frank DeSalvo

The FDIC published their 3Q24 balance sheet today. A few very high-level highlights as it relates to CRE. The percentage of 30 to 89-day delinquent loans continue to trend higher for construction and core CRE, but they dropped sharply for multifamily. That said, the % of non-current loans that rose across the board for construction, core commercial and multifamily. In fact, this measure shows that % of non-current multifamily loans is accelerating higher. This may indicate that more multifamily loans are become seriously delinquent (i.e, 90-days or longer). It's worth emphasizing that these percentages remain well below levels that were observed during the GFC. For instance, in 4Q10, 16% of construction loans were non-current vs 4.3% for core commercial and 3.7% for multifamily.

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The value of distressed assets in the #CRE marketplace continued to grow in the U.S. into Q3'24. Still, the ramp up is not as rapid as that seen following the GFC as there are different forces at play in the current market. Read more about the source of distress and a chart on comparisons to the GFC by my colleague Alexis Maltin here: http://ms.spr.ly/6049WR4GN MSCI Real Assets

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Freddie Mac's latest midyear outlook forecasts muted growth for the multifamily sector in 2024, with high supply and slow rent growth posing challenges. Despite a healthy economy, the vacancy rate is set to rise, and rent growth is expected to be just 2.7%. This tempered performance is a result of record-high new unit supply and economic volatility. However, long-term prospects remain strong due to housing shortages, high for-sale housing costs, and favorable demographics. Secondary and tertiary markets, particularly in the Sun Belt and southern plains, are likely to see more robust growth. https://lnkd.in/dUYcUevi Website: https://londonmoeder.com/ Facebook: https://lnkd.in/d7-qmPKb LinkedIn: https://lnkd.in/dsKSa7am TikTok: https://lnkd.in/dMJuxejJ Youtube: https://lnkd.in/d2rGGnCy #commercialrealestate #commercialproperty #CommercialLand #commerciallandforsale #warehousespace #officespace #flexspace #industrialspace #sandiegocommercialrealestate #sandiegorealestate #realestate #cre #realtor #realestateagent #realestateinvesting #property #commercial #commercialproperty #realestateinvestor #business #investment #propertymanagement #investmentproperty #residentialrealestate #forsale #retail #entrepreneur #construction #officespace #realestatebrokerage #housingshortage #housing #housingelements #housingmarket #housingcrisis #orangecountyrealestate #orangecounty #orangecountyhomes #latimes #lahousing #losangeleshousing #housingresearch

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#CRE, Freddie Mac Multifamily, Fannie Mae Multifamily, U.S. Department of Housing and Urban Development friends, need quick answers to your Multifamily Agency/GSE finance questions? Tired of sifting through "The Guide" or Googling for product term sheets? Check out this custom #ChatGPT tool to help! This tool aims to democratize access to Multifamily Agency/GSE finance information. It can answer questions like, "What's the min DCR for a $3MM loan in Seattle?" or "At what % ownership does an LP have to be underwritten?". (Link in comments) #Multifamily #agency #AI #freddie #fannie #guide #lending #CRE

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JUST CLOSED: $6,250,000 of preferred equity for the acquisition of a 193-unit $36,400,000 multifamily property located in North Carolina. This pref equity was done behind a FNMA execution. Another great execution done together with Marc Belsky ! We continue to be active in the pref equity space having recently completed over 50 preferred equity deals totaling over $550,000,000 of preferred equity dollars, representing $5.5 billion worth of transactions sourced from our 340 active preferred equity relationships. We can arrange pref equity behind floating rate bridge debt, fixed rate bank and agency debt, as well as behind EXISTING Fannie and Freddie loans being assumed as part of an acquisition or a recapitalization. We are also working on multiple “cash in” refi’s where the senior debt proceeds are coming up short. We focus on raising JV and preferred equity checks of $10 million to $50 million, and have recently completed over $1.4billion of equity raised encompassing $7,500,000,000 ($7.5 billion) of transactions covering the placement of equity across the country. Please reach out at 914-450-7823 or via email at [email protected] if we can assist you with JV or preferred equity for your real estate transactions. Thank you Marc Belsky Ltd, Real Estate Equity Brokers Keidra Gordon Giovanny Escobar Baruch Aryeh Mark Rosenzweig #valueadd #equity #realestatedeals #multifamilyrealestate #realestateinvesting #multifamilyinvesting #equity #realestateequity #privateequity #preferredequity #prefequity

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Newmark Atlanta has released our Q3 2024 Atlanta Office Market Overview. The full report is attached. Key Takeaways: - Rents Reach New Historical High - Annual full-service asking rental rates increased to a historical high of $32.28/SF, a 2.9% increase year over year. The annual pace of rent growth as generally been declining since 2017. - Vacancy Increases - Overall vacancy rates increased by 70 basis points year over year to 25.8%, as year-to-date supply still outpaced occupancies. - Under Construction Activity Declines - The under-construction pipeline declined 33.8% year over year to 1.4 MSF and has generally been slowing, bringing supply more in balance with demand. - Leasing Activity Dips - Total leasing activity closed the quarter at 2.2 MSF, decreasing 22.6% quarter over quarter. Leases signed averaged 5,983 SF per deal, reflecting a 1,084 SF quarter-over-quarter decrease. Brad Kirschner Stewart Thrash Craig Kalinowski Morgan Cumby Lindsay Kalski

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This week’s top 5️⃣ #CRE stories feature a surge in office-to-multifamily conversions and a 91% expectation of increased Q4 transaction volume. Plus, insights from experts on how data-driven strategies are key in today's differentiated market. Get the latest insights on market trends and industry updates shaping CRE's future. Read Blog: https://lnkd.in/eaGWfSmg #CREInsights #MarketTrends #commercialrealestate

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How to Implement the STP Marketing Model in CRE in 6 Steps: https://lnkd.in/eTCTGV5X #CommercialRealEstate #STPmarketing #CREInnovation 

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The shortage of new medical office supply combined with the growing demand for services continues to offer an attractive investment environment for healthcare investors. Atlanta remains on the radar for most active Buyers. Many maintain unwavering enthusiasm for medical office investments given solid fundamentals in the sector. Occupancy rates for medical office buildings (MOBs) are reaching highs and feature stability and yet, annual rent escalations now often exceeding 3%. Recently, Healthcare Realty Trust and global investor KKR formed a joint venture to invest in and own medical outpatient buildings - with notable 2061 Peachtree Rd, Atlanta as an example of a recent acquisition. #atlanta #healthcarerealestate #investmentsales

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Rent growth is poised for a rebound. As the multifamily market digests a wave of deliveries, Origin Investments forecasts Class A rent growth returning to historical norms by January 2026, with high-growth cities like Tampa and Atlanta leading the charge. For investors, a strategic focus on markets with resilient demand and limited future supply could offer compelling opportunities. Where are you placing your bets? #MultifamilyInvestment #RentGrowth #MarketTrends

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Listed REITs returned +2.3% last week, outperforming the S&P by 54bp and the NASDAQ by 50bp. Real estate was the 4th best of the 11 S&P sectors. Every subsector was positive as data centers (+4.9%), lodging (+4.7%) and office (+3.7%) led while single family rental (+0.2%), malls (+0.7%) and manufactured housing (+1.0%) were relative laggards. Year-to-date returns now stand at +12.1% with valuations only -2.7% below their 2024 highs. Here's your pretty picture.

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Capital Markets in DC are showing signs of promise with a 150% YOY sales volume increase in Q1. Read more about the DC #CRE market here: https://lnkd.in/gMcaJCKh  @cushmanandwakefield #capitalmarkets #DCCRE

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Explore the evolving residential real estate landscape. Delve into the fascinating trends shaping multifamily housing, providing indispensable insights for investors and developers alike. Read the full report: https://lnkd.in/gM4aXPs7 #MultifamilyCRE #CRE #HousingInsights #MarcusMillichap #HousingMarket

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From FBRT Q3 earnings call regarding multi…. “With respect to multifamily, clearly FBRT's focus, we do see supply-demand dynamics changing for the positive in the coming years at the asset level. New multifamily supply will be cratering shortly and permits for new starts are at decade lows. Declines in new supply and construction starts signal a shift in favor of landlords. As a result, we anticipate not only the burn off of recent rental concessions, but also rent increases in 2026 through 2028.”

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A group of economists polled by Nareit recently shared a renewed sense of optimism being felt across the commercial real estate sector. #CRE has faced a number of challenges of late, including everything from high interest rates, rising inflation, elevated borrowing costs to the impact remote work has on space utilization and occupancies. While uncertainty remains, economists interviewed by the organization note the market is showing early signs of recovery. Positivity is rising in such areas as an expectation for lower interest rates and subsiding inflation, not to mention stabilizing asset values and renewed investor confidence. Oh, another bright spot they also point out are improving fundamentals in terms of the cost of capital and capital availability. #economy #optimism #interestrates Via Nareit https://hubs.la/Q02-C_bw0

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Every successful CRE broker has faced that voice of doubt. The difference? They took action anyway. How to transform self-doubt into success: Eliminate the Burden of Doing It All Yourself Develop Automated Systems That Operate 24/7 Concentrate on High-Value, Strategic Activities Execute with Purpose and Precision Establish a Dependable Support Team for Seamless Operations Manage 3x more deals while working fewer hours. The secret? Engineer your business to run like a well-oiled machine. 💡 Ready to silence your inner critic and scale your CRE business? 🔥Comment "TRANSFORM" to discover how top producers are revolutionizing their approach to CRE. #CommercialRealEstate #CRESuccess #BusinessGrowth #CREBroker #ProductivityHacks #BusinessEfficiency