Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/863214
8 S C T / S E P T E M B E R 2 0 1 7 T H E C O M M O N A R E A C ommercial-mortgage-loan originations during the second quarter were 20 percent higher than they were in the year-ago quarter, and they were up by 28 percent over the first quarter of 2017, according to a Mortgage Bankers Association survey. "Borrowing and lending backed by commercial and multifamily properties has been strong the first half of this year," said Jamie Wood- well, the association's vice president of commercial real estate research, in a press release. "Reflecting broad Big boxes offer smart targets for property investors By Brannon Boswell Commercial property loans surged in second quarter $8.9 million Special servicer LNR Property, a subsidiary of Starwood Property Trust, sold the 116,980-square- foot Crestview Corners, in Crestview, Fla., to SilverCap Partners and Burton Property Group D E A L B A R O M E T E R W H O ' S P A Y I N G H O W M U C H F O R W H A T $144 million MetLife Investment Management bought Chino (Calif.) Spectrum Towne Center, an 830,000-square-foot power center, from Vestar Development Co. and an institutional entity. Tenants include Best Buy, DSW and Kohl's $35.9 million Heidenberg Properties Group and Strategic Real Estate Partners bought the 370,000-square- foot Potomac Marketplace, near Ranson, W.Va. Home Depot, Kohl's and Weis anchor the center $30.5 million Invesco bought the 211,760-square- foot Brookhaven Shopping Center, in Delaware County, Pa., outside Philadelphia, from Katz Properties. ShopRite and Lowe's anchor the center $21.6 million Austin Sumner Properties bought Rams Plaza, a 113,000-square- foot, Food Lion– anchored shopping center in Chapel Hill, N.C., from a group of investors led by the New York City–based Kalikow Group $18.5 million Allied Development of Alabama bought Eastern Shore Centre, a 540,000-square- foot lifestyle center in Spanish Fort, Ala., that was in receivership and was owned by a bank $9.1 million Urstadt Biddle Properties bought Waldwick (N.J.) Plaza Shopping Center, a 26,500-square-foot property whose tenants include Massage Envy, Supercuts and Verizon D E A L S industry trends, borrowing backed by industrial properties increased by two-thirds compared to the first half of 2016, while borrowing backed by retail properties dropped by one-sixth. As was the case during the first quar- ter, commercial/multifamily mort- gage bankers' originations increased despite a slowdown in the volume of sales transactions." The second quarter saw a 91 per- cent year-over-year increase in the dollar volume of loans for industrial properties, a 33 percent increase for office space, a 21 percent increase for multifamily properties, a 14 per- cent increase for hotels, a 7 percent increase in health care property loans, and a 9 percent decrease on the retail property side. Among investor types, the dollar volume of loans originated for commercial-mortgage-backed- securities loans increased by 168 percent year over year. There was a 26 percent year-over-year increase for government-sponsored enterprise loans (Fannie Mae and Freddie Mac), a 2 percent decrease in life insurance company loans and a 21 percent decrease in the dollar volume of commercial bank portfolio loans. Second-quarter 2017 originations on the hotel properties side increased by 139 percent from the first quarter of 2017. There was a 39 percent increase in originations for industrial properties, a 39 percent increase also for office properties, a 34 percent increase for retail, a 25 percent increase for multifamily and a 34 percent decrease for health care properties, from the first quarter of 2017. Among investor types, between the first and second quarters of 2017, the dollar volume of loans for CMBS increased by 117 percent, loans for life insurance companies grew by 25 percent, and originations for government-sponsored enterprises rose by 22 percent, while loans for commercial bank portfolios decreased by 5 percent. n