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 …
PEMBROKE PINES, FLA. — NorthMarq has arranged a $14 million refinancing for Village Square Shopping Center, an 88,529-square-foot property in Pembroke Pines. The property features a Publix and two outparcels leased to Bank of America and McDonald’s. Village Square is situated at 1601-1697 N. Hiatus Road, 25 miles north of downtown Miami. An undisclosed life insurance company provided the loan, which features one year of interest-only payments followed by a 20-year amortization schedule. Michael Balan of NorthMarq represented the undisclosed borrower in the transaction.
After a Record 2019, Mortgage Bankers Face Slowing Borrower Demand for Commercial, Multifamily Loans
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.
MIAMI — Cinemex Holdings USA Inc., parent company of CMX Cinemas, CineBistro and Cobb Theatres, has filed for Chapter 11 bankruptcy protection. The Miami-based company operates 41 movie theaters that have been temporarily closed since mid-March amid the outbreak of COVID-19. In a written statement, an undisclosed Cinemex Holdings USA spokesman said the Chapter 11 filing will help protect the company’s business viability and employees if and when the company’s movie theaters reopen. The spokesperson said that it’s impossible to forecast if and when ticket sales would ever reach pre-crisis levels. In the state of Georgia, movie theaters were allowed to reopen on Monday, April 27, and movie theaters in Texas can open at limited capacity on Friday, May 1. The spokesperson said that during its “total suspension of business” that landlords and creditors have proven unwilling to work out temporary solutions in terms of rent relief or repayment of debt obligations. The company spokesperson also said that the bankruptcy is a result of an uneven playing field as movie studios typically collect 60 percent of every ticket sold. The person said an equitable long-term “rebalancing” for movie theater operators would be for movie studios to cut their maximum revenue …
NAPLES, FLA. — Moorings Park Institute Inc. and London Bay Development Group have opened the first phase of Moorings Park Grande Lake, a continuing care retirement community (CCRC) in Naples. Located on 55 acres along the Naples Grande Golf Course, the first phase of development included three buildings totaling 47 units, all but three of which were pre-reserved. Entrance fees start at $1.5 million and are 70 percent refundable, and golf club membership is included. Phase II of the project has just opened for preleasing, and includes a clubhouse scheduled to open in late 2021.
KENNESAW, GA. — Madison Capital Group will develop a 714-unit Go Store It self-storage facility in Kennesaw. The property will stand five stories and will offer climate-controlled units and 69,550 square feet of net rentable space. A timeline for construction was not disclosed. Kim Bishop, Jim Davies, Eric Snyder and Lauren Maehler of Talonvest Capital Inc. originated a $6.2 million construction loan on behalf of the developer. An undisclosed regional lender provided the partial-recourse, four-year loan, which features interest-only payments at LIBOR plus 3 percent.
FLORENCE, KY. — Cushman & Wakefield has negotiated the $28.2 million sale of Paddock Club, a 200-unit multifamily community in Florence. The property offers one-, two- and three-bedroom floor plans. Communal amenities include a pool, indoor basketball court, fitness center and a dog park. The community was originally built in 1995 and was renovated in 2019. Paddock Club is situated at 8000 Preakness Drive, 13 miles southwest of downtown Cincinnati. Mike Kemether, Craig Collins and Don Murphy of Cushman & Wakefield represented the seller, Spyglass Capital Partners LLC, in the transaction. PLK Communities acquired the property.
Hunt Real Estate Provides $24.5M Acquisition Loan for Apartment Complex in Lexington, South Carolina
LEXINGTON, S.C. — Hunt Real Estate Capital has provided a $24.5 million Freddie Mac acquisition loan for Lullwater at Saluda Pointe, a 280-unit apartment complex in Lexington. Built in 2007, the property spans 23 acres and comprises 11 three-story buildings and a one-story leasing office/clubhouse. The borrower, Lullwater DE Holdings LLC, acquired the property from Fickling & Co. through a 1031 exchange. Lullwater at Saluda Pointe offers one- through three-bedroom floor plans, as well as a pool, fitness center, spa, playground, conference room and a business room. The new owner plans to implement a $1.6 million renovation to include new kitchen counters and backsplashes, stainless steel appliances, light fixtures, faux wood floors and screened porches. The borrower is also planning to install washers and dryers in 60 percent of units, replace exterior windows, paint, renovate the clubhouse, add a dog park and improve landscaping. John Sloot and Colin Cross of Hunt Real Estate Capital originated the loan on behalf of the buyer.
LOGAN, W.VA. — Uber Capital Group has arranged an $11 million acquisition loan for Fountain Place Shopping Center, a 226,096-square-foot retail property in Logan. The five-year loan features a fixed 4.5 percent interest rate and a 20-year amortization schedule. Fountain Place was built in 1997 at 1103 George Kostas Drive, four miles west of downtown Logan. At the time of sale, the property was leased to tenants including anchors Lowe’s Home Improvement and Walmart Supercenter, as well as Rue 21, Burkes Outlet, Shoe Show Mega Store, Dollar Tree, Southern West Virginia Health System, Appalachian Regional Healthcare and McCoy Dental. A regional lender based in Virginia provided the loan to the undisclosed borrower, a private investor based in New York.
Many multifamily real estate investors have moved to the sidelines until price transparency returns and the trajectory of property performance becomes clearer. It is a prudent strategy. Indeed, this period of forced inactivity is, perhaps, better used to reflect on the future and consider which U.S. apartment markets will offer the most attractive opportunities when the moment arrives to test the waters again. Conventional wisdom holds that markets with significant reliance on leisure travel employment will be hardest hit by the pandemic, particularly those with outsized exposure to the cruise industry. It’s hard to refute the logic. But investors who interpret it too literally may miss potentially attractive options. Take Fort Lauderdale, for example. The Broward County labor market has one of the highest exposures in the country to the leisure, hospitality and cruise sectors. More than 3.9 million cruise passengers embarked from the port last year, generating direct employment for about 15,000 residents and indirect employment for tens of thousands more in the lodging, dining and entertainment, air transportation and retail sectors. With the cruise industry taking on water surely investors would be well advised to steer clear of the Gold Coast? Perhaps not. In fact, the statistical impact …