Finance

Singer & Bassuk Secures Fannie Mae Loan for West Village Rental Buildings

110-114 Horatio Street.

The Singer & Bassuk Organization arranged a $60 million Fannie Mae loan on behalf of Rockrose Development Corp. to refinance 110-114 Horatio Street in the West Village. Wells Fargo is the Delegated Underwriting and Servicing provider in the deal, according to the brokerage firm.

The 10-year, fixed-rate loan replaces existing debt on the property, including a $31 million CMBS loan provided by Morgan Stanley in 2005, also brokered by Singer & Bassuk. Read More

Finance

The Millennial Effect

(Lorenzo Gritti)

There’s more to them than BuzzFeed, Lena Dunham and unemployment. The ascendant generation—those oft referred to as millennials—is affecting our national housing market, possibly permanently.

Battered by the financial crisis, environmentally conscious and not willing to commit to long-term investment in a property, millennials—defined by the U.S. Census Bureau as Americans between the ages of 18 to 34—are eschewing home ownership, in a departure from previous generations. Read More

Mortgage Observer

FHA and HUD to Undergo Further Revamp, Fannie Mae Unfazed

Fannie Mae Headquarters.

It’s business as usual for Fannie Mae—despite ongoing talks of an agency phase out—while the U.S. Department of Housing and Urban Development and its Federal Housing Administration are in the process of making serious changes, according to industry sources.

At the MBA CREF 2015 conference in San Diego, Fannie announced annual multifamily originations of $28.9 billion in 2014, up slightly from $28.8 billion in 2013. Read More

Mortgage Observer

Year in Review: 2014

Illustrations by Chris Morris.

It was another year of highs, lows and mammoth deals. While concerns about the Ebola epidemic and increasing violence abroad rattled markets in 2014, the year nonetheless brought jobs growth, rising stocks and an improved real estate market to the U.S. Of course, the specter of China’s ascendance, a double-edged sword for the American economy, is a wild card. China overtook the U.S. as the world’s largest economy in 2014, and at the same time Chinese investments in U.S. real estate reached an all-time high. Read More

Mortgage Observer

Meridian Brokers Fannie Mae Loan for East Village Property

The Adele.

Meridian Capital Group negotiated a $62.7 million Fannie Mae loan to New York-based Kahen Properties to refinance The Adele, a luxury multifamily property in the East Village, Mortgage Observer has learned.

The 12-year loan, provided by PNC Real Estate, carries a fixed rate of 3.75 percent and 10 years of interest-only payments, followed by a 30-year amortization, according to the broker. A PNC representative was unable to confirm the financing. Read More

Mortgage Observer

TF Cornerstone Closes Two Agency Loans Totaling $365M

95 Horatio Street.

The Singer & Bassuk Organization advised TF Cornerstone in the arrangement of two permanent agency loans totaling $365 million for the New York developer’s rental apartment buildings at 95 Horatio Street in the Meatpacking District and 4610 Center Boulevard in Long Island City, Mortgage Observer has first learned.

TF Cornerstone secured a $165 million Freddie Mac loan through Capital One for its Horatio Street property, said Jeremy Shell, the company’s head of finance and acquisitions, and Andrew Singer, chairman and chief executive officer of Singer & Bassuk. Read More

Mortgage Observer

Q&A: Mark McCool, President of Berkadia Commercial Real Estate Services

Mark McCool.

Mr. McCool leads the servicing division of Berkadia Commercial Real Estate Services, a company owned by Berkshire Hathaway and Leucadia National Corp with 75 offices nationally. The company services a portfolio of properties in the U.S., Canada and Mexico valued at over $245.3 billion and is the third-largest multifamily servicer nationally. Mr. McCool recently sat down with Mortgage Observer in Berkadia’s Midtown Manhattan office, where he told us about the future of Fannie Mae and Freddie Mac, the market for debt on distressed properties and the company’s operations in Hyderabad, India. Read More

Mortgage Observer

A World Without Fannie and Freddie?

Fannie Mae Headquarters.

A proposed Senate bill that seeks to wind down Fannie Mae and Freddie Mac over the next five years, revealed last month, would preserve their multifamily lending businesses under a new entity and maintain a government guarantee for the multifamily lending market, commercial lenders and brokers told Mortgage Observer.

The bill, announced by Senators Tim Johnson and Mike Crapo on March 11, focuses on the dissolution of the firms’ single-family residential mortgage business, a market that the government-sponsored entities continue to dominate six years after the beginning of the financial crisis. It also creates a provision that would spin off the companies’ multifamily businesses and establish new independent businesses within a year of the bill’s passage. Read More

Mortgage Observer

Beech Street Capital’s Grace Huebscher Finds Opportunity in Acquisition

Grace Huebscher (Photo by Susana Raab)

During last year’s Mortgage Bankers Association commercial real estate finance (CREF) conference, Grace Huebscher, president of the leading multifamily lender Beech Street Capital, found clarity on a topic she had been considering for some time—that staying ahead of the competition would require the support of a larger institutional partner. Capital One, Beech Street’s primary bank since 2010, had been on her radar, along with other top players in the finance arena. But prior to the annual event, Ms. Huebscher had felt that time was on her side.

A deeper sense of urgency set in as she listened to her peers speak about the challenges and changes ahead, from agency reductions to the return of the banking industry. That solidified a thought she and her partners had been entertaining for more than a year. Read More

Mortgage Observer

Fannie and Freddie Phase Out ‘Shocking,’ Real Estate Experts Say

Fannie Mae Headquarters.

Despite their surprisingly rapid recovery five years after being placed into government conservatorship, Fannie Mae and Freddie Mac will be dissolved, if bi-partisan legislation announced today by the Senate banking committee eventually passes.

Under the bill, private capital would have to take the first 10 percent of all mortgage losses, effectively removing much of the firm federal backing that mortgage-backed securities repackaged by Fannie and Freddie have enjoyed. Read More

Mortgage Observer

Live From Orlando: It’s the 2014 MBA CREF/Multifamily Housing Convention & Expo

The MBA Super Bowl Bash

Hello dedicated readers, industry insiders and commercial real estate junkies.

We are reaching out from the Mortgage Bankers Association‘s 2014 CREF/Multifamily Housing Convention & Expo in Orlando, Fla.

The four-day event kicked off last night at the Hyatt Regency Orlando hotel with several panels on the tumultuous FHA landscape and a lively Super Bowl party to cap off the night. (The Seattle Seahawks won their first Super Bowl title, defeating the Denver Broncos 43-8, for those who missed it.) Read More

Mortgage Observer

Workforce January 2014

Work Force

Blackstone Mortgage Trust has named Paul Quinlan chief financial officer, replacing Geoffrey Jervis, who resigned to pursue other opportunities. 

Mr. Quinlan, who most recently worked as head of financial planning and business development at Blackstone, will also now serve as CFO for the firm’s real estate debt strategies division. Read More