Condominiums conversions are back … in a few places. Developers are buying hundreds of millions of dollars’ worth of properties to convert to for-sale condominium housing, but only in a handful of cities. “Two-thirds of these conversion projects are in Manhattan,” says Ben Thypin Director of Market Analysis for Real Capital Analytics.
Read More (paywall): http://nreionline.com/multifamily/few-cities-have-condo-conversions
Commercial real estate usually has winners and losers. For a long time, multifamily apartments were popular with investors looking for good returns and appreciation.
Now hotels are hot. According to data from Real Capital Analytics, the hotel sector led all other property types in sales price gains in the first quarter and past year.
And in April alone, RCA reported, hotel sales volume of "significant commercial property" surged 27% vs. the earlier year. In contrast, office volume was flat. Retail, which has long been weak, was up 6%, as was industrial.
Excluding a large M&A deal between two real estate investment trusts, volume in the apartment sector was off 11% in April vs. the prior year, RCA reported.
"Hotels are one of the property types that benefit most from a better economy," said Ben Thypin, director of market analysis at RCA, a research firm focused on capital investments in commercial real estate. "Strength in the sector is representative of investors trying to get in front of a good economy going forward."
Read More http://news.investors.com/business/052214-701868-hotel-reits-and-lodging-doing-well.htm#ixzz32YE2lHed
On the heels of a report that Fortress Investment Group LLC is close to buyingStuyvesant Town-Peter Cooper Village for about $4.7 billion, commercial real estate finance specialists are wondering how the suitor can finance the deal. After all, the last time the behemoth housing complex was sold, things didn’t go so well.
Fortress is reportedly looking to bring in equity partners in the planned purchase, which Bloomberg News first reported on Wednesday. Stuyvesant Town, which occupies 80 acres and holds 11,231 apartments in 110 buildings, is the largest rental complex in Manhattan.
To foot the $4.7 billion bill, equity partners alone may not be enough, sources told Mortgage Observer Weekly. One possibility is for Fortress to use a combination of equity, senior debt and mezzanine debt, plus any credit it receives for holding existing debt, which can be converted to equity in the event of a sale, said Ben Thypin, the director of market analysis at Real Capital Analytics.
“The senior debt could either be funded by a group of insurance companies or similar institutions like pension funds or, more likely, by conduit lenders who then packaged the senior debt into CMBS, probably as a single- asset CMBS deal,” said Mr. Thypin.
Read More: http://commercialobserver.com/2014/05/%EF%BF%BChow-can-fortress-finance-its-4-7b-stuy-town-buy/
Fortress Investment Group LLC is preparing a bid to buy Stuyvesant Town-Peter Cooper Village, the Manhattanapartment complex whose future has been in limbo since its owners defaulted on a $3 billion mortgage four years ago, according to a person familiar with the plans.
The New York-based private-equity firm is seeking financing for an offer valued at about $4.7 billion, said the person, who asked not to be identified because the discussions are private. A deal would involve bringing in equity partners to contribute cash, the person said.
Stuyvesant Town, Manhattan’s biggest rental community, is currently under the control of CWCapital Asset Management LLC, which is owned by Fortress. CWCapital is a special servicer in charge of representing bondholders after owners Tishman Speyer Properties LP and BlackRock Inc. walked away from their investment in January 2010, one of the highest-profile casualties of the property-market crash. New York apartment values have since jumped as rental demand rebounds.
“Stuytown has certainly come a long way since the depths of the crisis,” said Ben Thypin, director for market analysis at real estate research firm Real Capital Analytics Inc. The $4.7 billion value considered by Fortress “reflects that resurgence in pricing.”
Read More: http://www.bloomberg.com/news/2014-05-13/fortress-said-to-be-preparing-bid-to-buy-stuyvesant-town.html
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.