Lancaster PA Commercial Real Estate » Investment

New Lease Accounting Rules May Affect Tenants and Landlords

thiryj — Sat, 04 Sep 2010 03:19:34 +0000

The CoStar Group reports that Northrop Grumman Corp.’s decision in July to relocate its corporate headquarters from Los Angeles to a 14-story, 334,385-square-foot building it acquired in Falls Church, VA, was a huge economic development victory for Fairfax County and the state of Virginia. But the defense contractor’s decision to buy rather than lease its headquarters building at 2980 Fairview Park Drive has also drawn renewed attention to a major international proposal that could effectively end off-balance-sheet treatment of leases.
To read the entire article, click here.

Troubled commercial loan volume shrinks

thiryj — Tue, 24 Aug 2010 17:16:10 +0000

CRE news reports – The volume of loans in special servicing fell in July, for the first time in more than two years, to $88B from $88.4B in June, according to Realpoint.

But because the overall CMBS universe shrunk, the percentage of loans that are in special servicing grew to 12.75% of the universe from 12.69% in June.

A net total of 113 loans with a balance of $348.3M were removed from the special servicing rolls in July, leaving 4,585 loans in the hands of the 19 companies that specialize in working out troubled CMBS loans. While some loans were transferred to special servicing, a larger amount were resolved or worked out and transferred back to master servicing.

To read the entire article, click here.

Commercial Real Estate Acquisitions Expected to Increase through 2012

thiryj — Wed, 14 Jul 2010 14:09:37 +0000

Morningstar analyst Todd Lukasik expects a flurry of purchase activity in the commercial real estate space, starting now and then intensifying in 2011 and 2012.

It’s not so much that the commercial real estate market is healthy, but rather that there will be massive amounts of distressed properties as many property owners’ untenable debt burdens come debt.

Click here to read the entire article.

Texas Investors Survey Central PA for Warehouse Space

thiryj — Thu, 01 Jul 2010 14:57:24 +0000

Central Pennsylvania Business Journal reports that a Texas real estate management and development company has its sights set on more Central Pennsylvania warehouse acquisitions, an executive said today.
Dallas-based Hillwood Investment Properties is actively surveying the market to add smaller vacant warehouses to its midstate portfolio, Senior Vice President Gary Frederick said. “It’s a very stable and consistent distribution market because of its proximity to most of the northeast population,” he said.

Click here to read the full article

Local REIT Invests Big in Area Retail Center

thiryj — Wed, 19 May 2010 18:45:39 +0000

Cedar Shopping Centers Inc. said on Tuesday it has entered a joint-venture agreement to purchase a shopping center in Berks County for $53 million.

The 361,000-square-foot Exeter Commons occupies 37 acres in Exeter Township. Construction was completed in 2009.

The agreement is a joint venture between Cedar and RioCan Real Estate Investment Trust, a Canadian firm. The deal, which is expected to close by Aug. 1, involves New York-based Cedar as the manager of the property.

Click here to read full article.

NAI Global Expands Loan Restructuring Capability to Assist Clients

thiryj — Sat, 08 May 2010 12:04:48 +0000

NAI Global, the world’s premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, and Chesterfield Faring Ltd., a leading real estate restructuring group, today announced a joint venture to assist clients in need of financial restructurings.

Click here to read the full article:

The NEW Spring 2010 Commercial Listing Report – Lancaster, PA

thiryj — Thu, 29 Apr 2010 14:33:12 +0000

John Thiry provides the Lancaster, PA commercial listing brochure as a courtesy to his clients:

Lancaster PA commercial listings – 2010 Spring

Tantalizing Hints of a Lending Thaw

thiryj — Thu, 29 Apr 2010 14:25:50 +0000

CoStar reports that large scale commercial property foreclosure meltdown appears unlikely:

First Quarter Bank Results: Potential for CRE Armageddon Fading

Weakness, Trouble Remain but Healthy Lenders Could Carry CRE Markets to Better Days

By Mark Heschmeyer

April 28, 2010

Although first quarter results of U.S. bank holding companies across the country are unmistakably downbeat about the short-term outlook for commercial real estate in general, and their portfolios in particular, they also hint at a growing sense that the problems are working themselves out.

For starters, banks generally reported that troubled loan assets were systematically moving through their books. For example, older construction loans on commercial developments and owner-occupied properties were being shifted to term loans, giving borrowers a chance to work through slow cash flow periods.

Read the full article: First Quarter Bank Results: Potential for CRE Armageddon Fading – CoStar Group.

On the Upside…Lenders Showing Signs of Easing Requirements

thiryj — Mon, 26 Apr 2010 20:05:16 +0000

Financing Terms for Borrowers Ease as Lenders Return

Apr 19, 2010 – CRE News

Lenders are returning to the commercial mortgage market, dropping their requirements for borrowers and their targets for returns along the way.

While trophy properties in major markets are seeing most of the increased lender interest, assets in secondary markets are also attracting stronger interest, according to mortgage intermediaries.

Traditional lenders, such as banks, life insurance companies and CMBS lenders, have increased by 5 percentage points the amount of leverage they’re willing to provide for properties to 60-70% for 10-year loans and by 10 percentage points to 65-70% for five-year loans, according to Cushman & Wakefield Sonnenblick Goldman.

read the full story

Turbulent Times Ahead for Commercial Paper

thiryj — Mon, 26 Apr 2010 20:03:17 +0000

Fitch Sees Cumulative CMBS Defaults Hitting 11% This Year

Loopnet reports from – CRE News:

The cumulative default rate for CMBS conduit loans is projected by Fitch Ratings to climb to 11% by the end of the year from 6.59% at the end of last year.

Through the end of last year, $35.5B of loans in Fitch’s universe of $539B of fixed-rate CMBS loans had defaulted. Last year alone, $17.7B of loans were added to the rolls of defaulted mortgages, with $6B of that being added in the fourth quarter.

In contrast, $17.7B of loans had defaulted between the market’s inception in the early 1990s through 2008.

Fitch said that it expected another 4.4% of the universe it tracks to default by the end of this year, bringing cumulative defaults up to its projected 11% level.

click here to read the full story