District of Columbia

Walker & Dunlop Provides $2.4B Fannie Mae Refinancing for Multifamily Portfolio in Metro D.C., Largest Loan in Company’s History

by Alex Patton May 1, 2020

WASHINGTON, D.C. — Walker & Dunlop Inc. has provided a $2.4 billion Fannie Mae loan to refinance a 67-property multifamily portfolio in the Washington, D.C., metro area. The borrower is Virginia-based multifamily owner and manager Southern Management Corp. (SMC). The portfolio includes 22,439 units in total, more than 60 percent of which qualify as affordable housing. The loan package features staggered maturities across a mix of fixed- and floating-rate, full-term, interest-only financing. “This $2.4 billion Southern Management transaction gave us the opportunity to partner with one of our top DUS lenders, Walker & Dunlop, using the credit facility, one of our most flexible financing products, to structure a winning solution for the borrower while delivering affordability to the Washington, D.C.,” says Jeffery Hayward, executive vice president of multifamily at Fannie Mae. The loan represents the largest transaction in Walker & Dunlop’s history, according to a statement from the company. “Walker & Dunlop’s creativity, tenacity and market knowledge resulted in a superior execution for this large and complex transaction amidst the uncertainty of a rapidly unfolding financial and health crisis,” says Suzanne Hillman, president and CEO of SMC. Brendan Coleman, Chris Forte and Connor Locke led a Walker & Dunlop team …

May 1, 2020

District of Columbia Southeast

First-Time Unemployment Claims Rise as 3.8M Americans File Due to Coronavirus Crisis

by Alex Tostado April 30, 2020

WASHINGTON, D.C. — Another 3.8 million Americans have filed first-time unemployment claims in the week ending April 25, according to the U.S. Department of Labor. The newest figure shows that since the sudden shutdown in the second half of March due to the outbreak of COVID-19, about 30 million people have filed for unemployment. This is the fourth consecutive week, though, that the weekly filings have decreased from the prior report. During the week ending April 18, 4.4 million claims were handled, which was down from 5.2 million during the week ending April 11. The Department of Labor reports the four-week moving average is 5 million, down from 5.8 million the previous four weeks. On Wednesday, the Center for Economic and Policy Research (CEPR) reported that the gross domestic product (GDP) in the United States shrank by 4.8 percent in the first quarter of 2020, which is the largest quarterly decline since the fourth quarter of 2008 when it contracted by 8.4 percent. As of this writing, there were 61,005 deaths and nearly 1.1 million cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).

April 30, 2020

District of Columbia Hospitality Southeast

Hotels Require More PPP Loan Funding to Save Jobs, Declares Major Trade Association

by Alex Tostado April 29, 2020

WASHINGTON, D.C. — The American Hotel & Lodging Association (AHLA) sent a letter to the U.S. Congress on Monday requesting more funds for small business hotels across the country. According to a report from AHLA, small business hotels won’t be able to bring back laid off employees or prevent further layoffs with the current funds offered by the Paycheck Protection Program (PPP), the Small Business Association (SBA) initiative established by the CARES Act. The PPP funds cover 47 percent of a hotel’s operating costs, the AHLA says in the letter. The Washington, D.C.-based organization also reports 61 percent of U.S. hotels, approximately 33,000 properties — are defined as small businesses. The letter was signed by more than 13,000 hotel owners. AHLA projects that 2020 hotel occupancy will go as low as 38 percent, the lowest figure since the Great Depression. Furthermore, the report finds that hotel staff nationwide has been cut by 70 percent since mid-March. AHLA states even after recovery begins, the hotel sector will not generate significant revenue to cover costs, given that hotel occupancy is not projected to return to pre-crisis levels before 2021 and revenue won’t return to pre-crisis levels until 2022.

April 29, 2020

District of Columbia Southeast

Partnership Releases Infectious Disease Exposure Control Practices for Construction Sites

by Alex Tostado April 28, 2020

WASHINGTON, D.C. — In the midst of the COVID-19 pandemic, North America’s Building Trade Union (NABTU) and the Center for Construction Research and Training have released a new standard for infectious disease exposure control practices for U.S. construction sites. “The new national framework outlines planning and implementation elements with strong minimum standards, screening policies and the requirement of a comprehensive employer exposure control plan. [The employer plan comprises] control measures, symptom checking, social distancing, training, hygiene and decontamination procedures,” according to a press release from the partnership. Some guidelines that the partnership suggests employers implement include: Designating a site-specific COVID-19 officer at every job site; Planning for office staff to have the ability to work from home; Training workers with the most recent information on the hazard and control measures, including social distancing, handwashing facilities on site and how high-touch surfaces are disinfected; Screening, such as asking workers to self-identify symptoms of fever, coughing, shortness of breath, chills, muscle pain, headache, sore throat and new loss of taste or smell each day, before the shift, mid-shift and at home. “The COVID-19 pandemic clearly underscores the need for and value of a strong, adaptable and multi-purpose exposure control standard to prevent …

April 28, 2020

District of Columbia Southeast

After a Record 2019, Mortgage Bankers Face Slowing Borrower Demand for Commercial, Multifamily Loans

by Alex Tostado April 28, 2020

WASHINGTON, D.C. — Commercial and multifamily lenders originated $600.6 billion in loans in 2019, marking the third straight record-setting year, according to Mortgage Bankers Association’s (MBA) 2019 Commercial Real Estate/Multifamily Finance Annual Origination Volume Summation. The Washington, D.C.-based organization warns, however, that 2020 will likely not continue the record-setting year trends, as COVID-19 impacts the United States economy. The pandemic “has slowed borrower demand and challenged lenders’ ability to underwrite and fund many property loans,” according to a press release from the MBA. With the markets adjusting day-to-day and hour-to-hour, how this year’s borrowing and lending compares to 2019 will depend on the duration of the pandemic and how quickly the economy bounces back, the organization says. According to the MBA, commercial bank portfolios were the leading capital source for originated loans in 2019, responsible for $179.8 billion of the total. The government-sponsored enterprises, including Fannie Mae and Freddie Mac, had the second highest volume at $139.1 billion, followed by commercial mortgage-backed securities issuers, life insurance companies and pension funds. Multifamily properties received the highest origination volume at $287.2 billion, followed by office buildings, industrial properties, retail, hotels/motels and healthcare.

April 28, 2020

District of Columbia Hospitality Southeast

AHLA Survey: 70 Percent of Hotel Workers Furloughed, Vacancy Rates Lowest Since Great Depression

by Alex Tostado April 24, 2020

WASHINGTON, D.C. — The outbreak of the novel coronavirus has continued to clobber the hotel sector as industry experts say 70 percent of workers have been furloughed and eight in 10 rooms are vacant, according to a survey conducted by the American Hotel & Lodging Association (AHLA). The data from the survey also leads the AHLA to project that vacancy rates in 2020 will be the lowest (38 percent) since the Great Depression. The vacancy rate was 66 percent from 2017 to 2019. “Hotels were one of the first industries affected by the pandemic and will be one of the last to recover,” said Chip Rogers, president and CEO of AHLA. The survey also reports that the full-service hotels that are remaining open are operating on average with a 14-person staff, a fraction of the average 50-person staff pre-crisis. Resort hotels, which often operate seasonally based on peak tourism months and averaged about 90 employees per location as recently as March 13, are down to an average of five employees per resort today. As of this writing, there were 49,963 deaths and 869,172 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).

April 24, 2020

District of Columbia Southeast

Another 4.4M Americans File for First-Time Unemployment in Midst of Pandemic

by Alex Tostado April 23, 2020

WASHINGTON, D.C. — An estimated 4.4 million Americans filed for first-time unemployment claims during the week ending April 18, the Department of Labor reports. The COVID-19 pandemic continues to affect millions of Americans as business and public spaces are closed. Over the past five weeks, the total number of Americans filing first-time unemployment claims is 26 million, all but wiping out the 24.4 million jobs created in the 11 years since the Great Recession. The latest figure shows a declining trend in weekly jobless claims, with the number of initial jobless claims having decreased for three straight weeks, according to the Department of Labor. As of this writing, there were 46,859 deaths and 843,614 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).

April 23, 2020

District of Columbia Retail Southeast

NRF Lauds Legislation to Expand Funding for Small Businesses by $300B Amid Pandemic

by Alex Tostado April 22, 2020

WASHINGTON, D.C. — The National Retail Federation (NRF) has praised the $300 billion legislation the U.S. Senate passed to financially aid small businesses that are struggling during the COVID-19 crisis. The Small Business Administration (SBA) ran out of its originally allotted $376 billion Paycheck Protection Program (PPP) fund, which had 200,000 small businesses partaking in the program. The PPP is a product of the Coronavirus Aid, Relief and Economic Securities Act (CARES Act), which was signed into law March 27. “Retailers continue to deal with catastrophic hardships from COVID-19, and small retailers are the hardest hit,” NRF President and CEO Matthew Shay said. “The CARES Act was an important first step, but funding for the PPP has already been exhausted and additional relief is essential to keeping employees of small retailers on the payroll and contributing to the economy until we can get through this challenge.” The total allotment of the new legislation is $484 billion, with additional funding going to hospitals and COVID-19 testing. The U.S. House of Representatives is expected to vote on the bill Thursday. Washington, D.C.-based NRF has advocated for retailers and policies for more than 100 years.

April 22, 2020

District of Columbia Loans Multifamily Southeast

Freddie Mac Extends Multifamily COVID-19 Forbearance Program, Revises Protocols for Evictions and Penalties

by Alex Tostado April 17, 2020

WASHINGTON, D.C. — Freddie Mac has changed its previously announced Multifamily COVID-19 forbearance program in three ways to better align with the federally enacted Coronavirus Aid, Relief and Economic Security (CARES) Act. The program allows Freddie Mac’s multifamily borrowers to defer their loan payments for 90 days if they can show hardship as a consequence of the COVID-19 outbreak and if they receive approval from their lenders, which are part of Freddie Mac’s Optigo network. The first change to the program is an extended deadline for multifamily owners to enter forbearance due to COVID-related hardships. The new deadline is until the end of the year or the end of the federally declared emergency period, whichever occurs first. The previous end of the program was set for Aug. 1. The agency also revised its eviction policy pertaining to borrowers that enter forbearance, saying none of the borrowers’ residents can be evicted, whether or not they can prove their nonpayment stems from COVID-19-related hardships. The third change is participating owners are required to waive late fees, penalties or other charges related to tenant nonpayment of rent during the forbearance period. “The program has already proved to be an important source of relief …

April 17, 2020

District of Columbia Southeast

Another 5.2 Million Americans File for Unemployment as COVID-19 Pandemic Continues to Take Toll

by Alex Tostado April 16, 2020

WASHINGTON, D.C. — An estimated 5.2 million people filed for first-time unemployment in the week ending April 11, the U.S. Department of Labor reports. COVID-19 has continued to take a toll on the daily lives of almost every American and those around the world as local, state and federal governments issue stay-at-home orders and urge non-essential businesses to close to the public. Over the past four weeks, the total number of Americans filing for unemployment has exceeded 22 million, according to the Department of Labor. To put the pandemic’s swift movement through the economy into perspective, there were 24.4 million jobs created over the past 11 years since the Great Recession, according to the Department of Labor. The latest weekly unemployment claims figure is down from 6.6 million the prior week. As of this writing, there were 31,015 deaths and 640,291 confirmed cases of COVID-19 in the United States, according to Johns Hopkins University (JHU).

April 16, 2020

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