📊 Investors Hit Pause in 4Q23 per Burns + CRE Daily Fear and Greed Index. See the full report here.

New York’s ERAP Eviction Protections to End in January

Starting January 15th, New York’s Emergency Rental Assistance Program (ERAP) will no longer accept applications from tenants seeking protection from eviction, according to a recent settlement.

New York’s ERAP Eviction Protections to End in January

Starting January 15th, New York’s Emergency Rental Assistance Program (ERAP) will no longer accept applications from tenants seeking protection from eviction, according to a recent settlement.

Good morning. New York’s eviction protections for tenants could be coming to an end in January. One of the world’s biggest streamers plans to buy a 300-acre property at a former military base in NJ and build a new, state-of-the-art production facility. And a national brokerage firm is betting big on single-family rental sales and has put together an A-team to execute the mission.

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  • 📖 Read: Learn about the interesting rise and fall of the landmark Belmont Hotel and what its owners are planning to do with it.

  • 💻 Watch: Mark Fleming, Chief Economist for First American Financial Corporation, discusses how the real estate market is going to shape up in 2023 in this episode of Top of Mind.

  • 🎧 Listen: Stephanie Rodriguez, National Director of Industrial Services for the US, highlights how the industrial sector impacts every facet of the real estate business in this installment of Retail Recorded.

THAT'S A WRAP

New York’s ERAP Eviction Protections to End in January

Starting January 15th, New York’s Emergency Rental Assistance Program (ERAP) will no longer accept applications from tenants seeking protection from eviction, according to a recent settlement.

Time to face the music: When the Office of Temporary and Disability Assistance (OTDA) runs out of ERAP funds, applications will start getting denied. The program has been low on funds since November 2021, but New York asked for $1B in additional funding from the government in November. While the US Treasury still has $13B to allocate for rent relief, New York is unlikely to get much of it. In fact, NY only received 7% of $1.6B it requested at the beginning of the year.

Better to give than to receive: The state has already shelled out all of its rent aid, yet 176K unpaid rent applications remain pending. There are also a large number of incomplete “phantom applications” on the portal that are allowing tenants to receive eviction protections. A Freedom of Information Law request made by a Long Island landlord found that OTDA did not include over 360K incomplete applications in its headcount, either.

➥ THE TAKEAWAY

Last-ditch, one-shot deal: Landlords have been left in limbo as they await decisions from the state, wondering when and how they’ll be paid. Industry experts came up with a few ideas. The state could increase funding for the city’s One Shot Deal program, which allows renters to cover rent while facing eviction. Renters and landlords wouldn’t have to waste time and money waiting around for the courts to seek relief, and renters could apply for relief before a housing court date.

THE NEW HOLLYWOOD

Netflix to Buy 300-Acre Production Site in New Jersey

Netflix (NFLX) plans to buy a 300-acre property at a former military base in New Jersey to build a state-of-the-art production facility, investing $850M and counting into the new venture.

The new digs: On Dec. 21st, the Fort Monmouth Economic Revitalization Authority (that was a mouthful) gave Netflix the green light to purchase the 292-acre Fort Monmouth property for $55.04M to build its new production site. The facility will feature 12 soundstages ranging from 15–40 KSF. It may also feature a cafeteria, helipad, hotel, theater (of course), and a base camp for trailer parking.

The Netflix economy: Construction of the new facility alone could create 3.5K jobs in the area and generate 1.4–2.2K more jobs annually. If that wasn’t nice enough, the new production site is also projected to net somewhere between $7.4–$8.9B over the next two decades. “Netflix’s substantial direct investment will stimulate job creation and spark an entirely new ecosystem…bringing with it countless additional jobs and boosting the regional economy,” said New Jersey Gov. Phil Murphy.

➥ THE TAKEAWAY

Silver screen dreams: New Jersey has been making efforts to expand its tax-credit program to lure in more local film and TV production. In addition to its deal with Netflix, the entertainment company Lionsgate was named a “studio partner” this month by the state. This partnership will allow Lionsgate to tap into more tax credits as it becomes an anchor tenant at its $125M studio in Newark.

RENTAL BOOST

Newmark Invests in Single-Family Rentals Amid Low Demand

Newmark (NMRK), one of the largest real estate brokerage firms in the nation, has put together a national A-team with the sole purpose of boosting single-family rental sales even as demand cools.

The A-team: Chad Lavender and Ryan Maconachy will be leading Newmark’s new sales group to entice investment in single-family rentals. Brokers Leland Manning and Josh Francis will also be operating within Newmark’s multifamily capital markets group led by Jeff Day. Other major brokerages, such as Cushman & Wakefield (CWK) and CBRE, have set their eyes on the SFR sector for the past two years.

Increasing investor interest: SFR sales skyrocketed during the pandemic after city dwellers flocked to suburban rentals seeking more space and privacy. Unsurprisingly, there’s been growing interest among institutional investors. In fact, they’ve already spent more than $100B on SFRs over the past several years. And a recent report from MetLife Investment Management revealed that institutional investors like Blackstone (BX) and Ares Management (ARES) owned roughly 700K SFR properties.

➥ THE TAKEAWAY

Can’t buy 'em’? Build em’: Big-name players had to pull back on buying new properties this year due to rising home prices and lending costs. For instance, Invitation Homes bought 559 homes in Q3 2022 compared to the 1.5K homes it bought in Q4 2021. As existing home sales slowed down, built-to-rent properties shot up to over 25K homes this year, attracting homebuilders and developers into a booming market.

📰 Editors' Picks

  • Pandemic boomtowns: While high interest rates and a looming recession have delayed many first-time homebuyers, some markets could see renters become buyers sooner than expected.

  • Back to work, workers! The Biden administration is building a 2023 economic agenda to lure Americans back into the workforce, including enhanced childcare and eldercare benefits.

  • NFL fumble: A bankruptcy judge approved a plan for the Carolina Panthers’ billionaire owner to pay millions to creditors after a failed headquarters project.

  • Amazon Fresh stalls: Amazon (AMZN) continues to delay the openings of Amazon Fresh stores, leaving local officials and landlords wondering if they’ll ever open at all.

  • What’s behind Door No. 2? High interest rates and increased federal funds set by the Federal Reserve have revalued public REITs, but not private ones.

  • Hypothetically speaking: A merger between JLL and Cushman & Wakefield (CWK) would have “strategic benefits,” accoriding to a new analyst report.

  • Apple’s Austin expansion: Apple (AAPL) has proposed a $22M, 33 KSF expansion to its $1B, 3 MSF campus in Austin, Texas. Everything really is bigger over there.

  • Big lender: Basis has become the first African American and women-owned real estate firm to obtain a Fannie Mae DUS designation. Congrats!

🤝 Deals & Dealmakers

  • Same-day delivery: American Eagle’s subsidiary Quiet Platforms, an online delivery network for retailers, has teamed up with JLL to lease warehouse space.

  • DC’s big deal: Greysteel will be selling its 16th Street portfolio, which is comprised of six multifamily assets located in Northwest DC, for $76M.

  • A new record! North Bridge has closed Florida’s largest C-PACE transaction for the renovation of a hotel in Miami-Dade County for $42M.

  • Inland Industrial Empire: Colliers brokered a $90M deal with GLP Capital Partners for an industrial facility in Perris, CA.

  • Outdoor storage: Philadelphia-based Alterra IOS Manager spent $86M to acquire a 14-property portfolio for industrial outdoor storage assets spanning eight states.

  • Shorenstein sells: Shorenstein Properties LLC sold their 430 KSF Commons at the Park office campus in Charlotte, NC.

  • Starwood’s new trophy: Starwood Capital (STWD) placed a $200M credit bid on Downtown LA’s Broadway Trade Center following foreclosure.

📈 Chart of the Day

😎 Offering-MEME-Orandum

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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