S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.
US commercial mortgage lending activity slipped in the first quarter due to stress in the banking system and volatility in the financial market, CBRE said in a report.
The CBRE Lending Momentum Index, which tracks loans originated or brokered by CBRE Capital Markets, stood at 204 at end-March, down 33% from end-December 2022 and down 53.5% on an annual basis.
The spread on closed commercial mortgage loans in the first quarter widened by 14 basis points on a sequential basis to an average of 206. Meanwhile, the spread on multifamily mortgages averaged 170 basis points, tightening by 8 basis points from the previous quarter.
Banks remained the top lending group in the first quarter, taking 41.1% of non-agency loan volume. Life companies came in second, accounting for 23% of origination volume.
CHART OF THE WEEK: 6 REITs hike dividend payouts in April
⮞ Six publicly listed real estate investment trusts in the US increased their dividend payouts in April.
⮞ Summit Hotel Properties Inc. had the highest dividend raise during the month with a 50% increase to 6 cents per share.
⮞ Tanger Factory Outlet Centers Inc., Broadstone Net Lease Inc., Agree Realty Corp., Community Healthcare Trust Inc. and Gladstone Land Corp. also bumped up their dividends.
Financing
– American Lions, a joint venture between Fetner Properties Inc. and the Lions Group, secured $350 million debt and equity capitalization to develop The Italic, a 363-unit, mixed-use community at 26-32 Jackson Ave. in Long Island City, NY. The to-be-built property will offer 283,000 square feet of residential space and 10,000 square feet of commercial retail space.
– A joint venture between Innovo Property Group and Affinius Capital nabbed a $334 million debt package from Bank OZK and PIMCO to recapitalize an industrial development anchored by Amazon at 2505 Bruckner Blvd. in Bronx, NY, the Commercial Observer reported.
– Gindi Capital Ltd. and Avery Hall Investments obtained construction financing worth $110 million from Affinius Capital for 655 Union St./204 4th Ave., a 193-unit mixed-use community in New York City’s Brooklyn borough, Multi-Housing News reported.
Property Transactions
– Armada Hoffler Properties Inc. agreed to acquire The Interlock, a mixed-use property in Atlanta’s West Midtown area, from SJC Ventures LLC in a $215 million off-market deal. Armada Hoffler Properties will own 311,000 square feet of commercial space and an 835-space garage in the property.
– Pantzer Properties Inc. purchased the six-story Milagro Coral Gables, an apartment building offering 237 apartments at 2263 SW 37th Ave. in Coral Gables, Fla., for $97.5 million, the Commercial Observer reported, citing property records. Wafra, an investment firm backed by Kuwait’s public pension fund, was the seller in the transaction, the report said.
Western Alliance boosted lodging loan exposure in Q1 while other banks retreated
REIT Replay: Hotel REIT stocks jump in 1st week of May