Commercial mortgages

A new Marriott Residence Inn is expected to sprout next to the Millbrae BART station after landing a construction loan that serves as a welcome counterpoint to the pall of economic uncertainty cast by the coronavirus.

Developer Doug Loose says he is "living in a cloud" after recently securing financing through Frankenmuth Credit Union for a portion of his $4.2 million purchase of a damaged condominium complex in Midland, Mich.

Citizens Bank Financial Group is funding the construction of two apartment buildings in neighborhoods northwest of Center City with a total of $27.5 million in loans, allowing the projects to move forward despite economic headwinds from the coronavirus pandemic.

Commercial real estate fundamentals improved in July, but the pandemic continues to affect development projects and is likely to remain a significant challenge for more than a year, according to a COVID-19 impact report by the NAIOP Commercial Real Estate Development Association.

PREIT, which owns a number of large malls, is trimming the salaries of its CEO and chief financial officer while suspending dividend payments as part of a deal with its lenders to stave off default as the coronavirus pandemic continues to take its toll on the troubled company.

While the multifamily loan forbearance rate is lower than the most pessimistic projections, Pat Jackson says borrowers are hardly out of the woods yet.

As the coronavirus reshapes urban life — and prompts businesses to rethink where they want to be — a pair of California real estate investors are pushing what might seem like an unlikely vision for the future.

For banks with assets between $10 billion and $100 billion, the average exposure is 165% of capital.

Starwood Capital Group missed two monthly payments on securitized debt tied to five shopping malls anchored by bankrupt department stores including Sears and J.C. Penney.

But deal sponsors are primarily restricting property assets to the lower risk multifamily and office buildings that lenders are more confident will weather the economic strains brought by the coronavirus pandemic.