WASHINGTON, D.C. — Led by surges in financing for healthcare, multifamily and industrial transactions, commercial real estate loan originations increased by 14 percent year-over-year in the fourth quarter of 2018, according to the Mortgage Bankers Association (MBA). The Washington, D.C.-based firm released the preliminary findings in its Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations, which was showcased at the 2019 Commercial Real Estate Finance/Multifamily Housing Convention & Expo, held at the Manchester Grand Hyatt San Diego. The four-day conference concludes tomorrow. The fourth quarter saw a 61 percent year-over-year increase in the dollar volume of loans for healthcare properties, 32 percent jump for multifamily properties, 28 percent hike for industrial properties and a slight increase (1 percent) for retail properties. Originations decreased for hotel property loans by 4 percent and office property loans by 3 percent. With the fourth-quarter estimates, the MBA predicts that origination volumes in 2018 were 3 percent higher than 2017. By property type, originations rose 22 percent for multifamily properties, 12 percent for industrial assets and 5 percent for hotels. Office property originations were down 7 percent, retail properties declined 13 percent and healthcare properties decreased by 16 percent. In late March, MBA will release its …
WASHINGTON, D.C. — The Mortgage Bankers Association’s (MBA) expects to see steady commercial real estate markets keep commercial and multifamily mortgage originations on par with the last two years. In its 2019 Commercial/Multifamily Real Estate Finance Forecast, MBA projects commercial and multifamily mortgage originations to total $530 billion in 2019, matching 2017’s total, and slightly up from 2018’s mark of $526 billion. MBA believes that multifamily mortgage originations will increase 1 percent to $264 billion, with total multifamily lending at $315 billion. The Washington, D.C.-based organization expects these originations totals to continue through 2020. Additionally, outstanding debt from multifamily and commercial mortgages are expected to finish 5 percent higher in 2019 than 2018. MBA released its 2019 forecast Sunday, Feb. 10 at the 2019 Commercial Real Estate Finance/Multifamily Housing Convention & Expo in San Diego. The four-day conference will conclude Wednesday, Feb. 13.
WASHINGTON, D.C. — Office Properties Income Trust has sold a 34-building portfolio of office assets in metro Washington, D.C., to an undisclosed buyer for $198.5 million. The names and locations of the buildings were not disclosed. Office Properties is a newly named REIT, formed after Government Properties Income Trust and Select Income REIT merged Dec. 31, 2018. This portfolio sale completes Office Properties’ previously disclosed disposition plan with respect to its long-term financing of its acquisition of First Potomac Realty Trust (FPO) in 2017. Office Properties has sold $520.8 million worth of properties since it acquired FPO, including the 34-property portfolio sale.
The Northern Virginia data center market continues to outpace the rest of the country’s leading data center markets by more than double. By the close of the first half of 2018, Northern Virginia had 317 megawatts (MW) under construction with Phoenix a distant second at 136.5 MW. (In real estate terms, industry standard is approximately 150 watts per square foot.) What drives Northern Virginia as the leader today is an unparalleled business ecosystem that has grown over the past 20 years from the original edge data center to today’s premier data center market. The market is a prototype for which subsequent data centers strive to achieve. Ideal Data Center Landscape Very few enterprises build their own on-premise data centers. Northern Virginia got its start as a leader in this space by going into colocation data centers. The companies that pioneered the movement, like Equinix, DFT and Exodus Communications, have brought Northern Virginia to where it is today. But, it’s more than that. It takes a confluence of legislative support, fiber, power, development, deployment of new IT technologies and other partnerships to allow the Northern Virginia market to flourish into the tech superpower it is today. Northern Virginia has also been …
Washington, D.C.’s multifamily market has enjoyed success in recent years, and 2018 has been no exception. The regional economy continues to function at an extremely healthy level, adding 77,100 new jobs in the trailing 12 months ending July 2018, much more than the annual average of 41,000 since 2010. The region has outgrown its previous dependence on the federal government, which contracted by 4,800 jobs over the same period, further highlighting the strength of the region’s private sector. This sustained economic upside is only further enhanced by the looming possibility of Amazon’s HQ2, Apple and other large tech contracts. The strong job growth has been matched by a steady increase in population, which has grown 10.44 percent since 2010, to roughly 6.25 million people. To accommodate such growth, the supply pipeline has been equally as robust, delivering nearly 13,000 units per year for the past five years. In addition to all the recent deliveries, absorption has remained steady and strong, with the market absorbing a net positive of 7,570 units over the trailing 12 months. Furthermore, Class A rents have still managed to grow 1.4 percent over the past year, while overall market rent growth has grown an even higher …
WASHINGTON, D.C. — Freedom Forum has sold 555 Pennsylvania Ave., the building that houses Newseum, to John Hopkins University for 372.5 million. The private research university plans to use the 475,000-square-foot property as a consolidated center for its D.C.-based graduate programs. Freedom Forum is the creator and primary funder of Newseum, and in August 2017 announced that it was open to multiple options to fund or sell the museum focused on increasing public understanding of the importance of a free press and the First Amendment. Newseum will remain open through the end of the year.
Investors have renewed their interest in office properties in the Washington, D.C. central business district (CBD) based on increasing tenant demand. The market is putting a higher value on the built-in amenities that exist in the CBD, like dining and entertaining options, transportation accessibility and architecturally timeless buildings. We can always tell the center of gravity of a city by where the brokerage shops locate. In D.C., CBRE’s latest move to the CBD from the East End puts all of the agency brokerage shops within feet of each other. With a healthy stock of historically significant, well-built office properties with value-add potential, the CBD is primed to continue its office renaissance. Transportation Infrastructure While the existing public transportation infrastructure in the CBD is an important factor driving businesses back to the submarket, shaving 20 to 30 minutes from commute times — whether by car, bus or train — is decidedly attractive to today’s employers. Combined with the variety of established dining, entertainment and hospitality options in the CBD, transportation is vital to attracting high-profile employers. The city’s law firms in particular have taken note. Over 20 notable practices have relocated their offices to the CBD in the last year alone. …
UPPER MARLBORO, MD. — Finmarc Management Inc. has acquired Largo Town Center, a 280,000-square-foot shopping center in Upper Marlboro, for $43.9 million. The asset was fully leased at the time of the sale to tenants such as Marshalls, Regency Furniture, Shoppers Food Warehouse, Advanced Auto, Dollar Tree and Dress Barn. The center’s tenant roster features 35 retailers and restaurants, including both fast-casual and sit-down concepts. Largo Town Center is situated about 18 miles east of downtown Washington, D.C., and about three miles east of FedEx Field, home of the Washington Redskins. Bill Kent, Ryan Sciullo and Chris Decoufle of CBRE represented the seller, Site Centers, in the transaction.
WASHINGTON, D.C. — KeyBank Real Estate Capital has provided a $30.3 million construction loan for a planned 67,000-square-foot, two-story retail property that will be fully leased to Target upon completion. The property is situated at 1515 New York Ave. N.E. in Washington, D.C.’s Ivy City neighborhood. Scott Bois and Ashley Reiser of KeyBank arranged the fixed-rate, non-recourse loan with a 20-year amortization schedule. The loan included a credit tenant lease transaction to facilitate the funding. According to Washington Business Journal, the developer, Douglas Development Corp., is planning to open the Target in fall 2020.
WASHINGTON, D.C. — A joint venture led by Urban Investment Partners (UIP) has purchased The Policy, a 62-unit apartment building in Washington, D.C., for $22 million. The partner and seller were not disclosed, though multiple media outlets report that the partner is Pacolet Milliken Enterprises and the seller was an affiliate of Goldman Sachs. The 90-year-old building is situated in the Adams Morgan historic district. UIP is expected to begin renovations in the first quarter of this year. UIP purchased The Policy in 2009 as part of a separate joint venture, performed a major renovation and sold the asset in 2014. The pet-friendly community offers studio, one- and two-bedroom floor plans, and amenities include bike storage and a clothes care center.