October 5, 2016


Each Wednesday, The Wrap presents a compilation of recent noteworthy commercial real estate stories from a variety of publications. Below are links to five stories that caught our eyes in recent days:

Federal Housing Administration Proposes New Rules for Condominium Market, By Champaign Williams, Bisnow

Key Excerpt:

“The new regulations will ultimately give the administration leeway to specify new owner-occupancy, commercial and single-unit thresholds. Currently, the FHA requires approved condo developments to have at least 50 percent of the units occupied by owners, but the proposed rules would extend that range to between 25 percent and 75 percent.”

Lenders Shy Away from Commercial Real Estate, By Gina Hall, Atlanta Business Chronicle

Key Excerpt:

“For small banks, commercial property loans are among some of their largest loans, so that guideline stands as a challenge. As smaller lenders move to sell off loans — and are reluctant to issue new ones — private equity funds and other institutional lenders are filling the void and moving in on the lucrative deals.”

The Shopping Center Group Arranges Sale of Two Retail Centers in Metro Atlanta for $9.4 Million, Shopping Center Business

Key Excerpt:

“The transactions include the $5.9 million sale of the 107,000-square-foot Dacula Family Festival in Dacula and the $3.5 million sale of the 62,410-square-foot Midway Family Festival in Cumming. Vishal Dacula LLC purchased both assets. Neal Pringle and the late Mark Cooley of The Shopping Center Group represented the seller, Watkins Real Estate Group, in both transactions.”

Outstanding CRE Debt Keeps Growing, Expected to Surpass Pre-Recession Peak, By Mark Heschmeyer, CoStar

Key Excerpt:

“Multifamily residential debt has never really stopped growing — surpassing each previous year’s volume in seven of the last eight years. And it continues to rise at a double-digit pace, up 10.15% in the past year, according to the Fed. Total commercial/multifamily debt outstanding rose 6.8% year over year to $3.707 trillion. Multifamily debt outstanding rose to $1.137 trillion, making up 31% of the total volume. Nonresidential debt outstanding rose to $2.571 trillion.”

U.S. Commercial Real Estate: A Favorite among Foreign Investors, By Gary Bechtel, NREIOnline.com

Key Excerpt:

“Global instability, Brexit and the threat of a debt-fueled bubble bursting in the Chinese economy has made U.S. commercial real estate one of the most desired investments on the planet. The Wall Street Journal recently reported a 19 percent year-over-year increase in investment by China in U.S. commercial real estate for the first half of 2016.”

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