Together with

Good morning. Hope everyone had a nice weekend. If you're feeling a bit tired today, you're not alone. Three major holidays overlapped this year – Easter, Ramadan, and Passover – a rare event that typically occurs thrice a century. Plus, the Masters took place, making it once-in-a-millennium!

Today's edition is brought to you by Xeal Energy, the next generation of EV charging solutions for multifamily and commercial real estate properties.

Industry Insiders Weigh in on Signature Bank's Troubled Real Estate Loans

New York Community Bank's (NYCB) decision not to buy Signature Bank's commercial real estate loans has set off alarm bells for the city's landlords.

The aftermath: When the FDIC chose Newmark to sell Signature’s real estate loans to another buyer, several questions arose, such as the quality of these loans, potential buyers, and the impact of the sale on the rent-stabilized market. The Real Deal reached out to investors, attorneys, and workout experts to gain insights on the matter. Here's what they found out:

How bad is bad? Signature Bank's rent-stabilized loan book has been plagued by a variety of issues, including ties to notorious players accused of tenant harassment, loans issued to bad actors, a shallow buyer pool for distressed assets, and the 2019 rent law which made it difficult to raise rents on stabilized units and drove down property values by up to 65 percent, leading to a potential chunk of properties being at risk of delinquency and default if refinanced at today's higher interest rates.

Who’s buying, anyway? New York Community Bank was considered as a possible buyer for Signature Bank's loan book, but no official comment has been made. Industry insiders doubt that institutional players will buy the loans due to their risky nature. It is expected that private lenders such as debt funds or private equity firms will purchase the loans, possibly from multiple sources. This could limit restructuring options for distressed borrowers, as bidders are uncertain about how low to go.

➥ THE TAKEAWAY

The Uncle Sam question: The sale of Signature Bank's loan book may face government oversight, as the FDIC seeks input from state and local governments to preserve affordable housing. U.S. Rep. Ritchie Torres has called for the FDIC to consult with city and state housing officials on the sale. This additional oversight may ensure loans for at-risk buildings land in responsible hands, but for property owners, it could mean prioritizing tenants' needs over their own.

Case Study: EV Charging for Multifamily Properties

Xeal Energy offers a comprehensive solution to multifamily property owners who seek to attract high-value residents and increase their net operating income (NOI) through the implementation of EV charging infrastructure.

Challenge: When faced with the challenge of no cell service or internet connection in the parking garage of their asset, More Residential opted for 7 chargers as part of their larger EV rollout strategy to accommodate 5% of their units. The only location choice for the chargers was in their multi-level parking garage.

Solution: Xeal provided 7 wall-mounted chargers, inclusive of their Apollo technology, eliminating the need for IT infrastructure and enabling EV-driving tenants to charge at home. Xeal's all-in-one solution has proven to be highly effective at encouraging new leases from EV-driving tenants and increasing the property's NOI.

Result: At one property, Xeal's solution resulted in an overwhelming response in charger utilization, with 42 total drivers utilizing the chargers in just 6 months.

To explore the potential earnings for your property with Xeal, connect with one of their specialists today. Their cutting-edge technology can help attract more residents and improve your bottom line.

• New venture: CBRE IM and Accelerate Investment Partnership have teamed up in a JV to invest in ground leases related to infrastructure assets that support critical, digital, and green economies.

• Dumbo Heights: Kushner Companies and RFR Holdings are seeking up to $435M in debt to refinance their joint venture's Dumbo Heights creative office campus in Brooklyn.

• Fed 'screwed up': While some are hopeful for a US economy rebound due to a strong labor market and declining inflation figures, billionaire investor Sam Zell isn't joining the party.

• Steep discount: Blackstone has sold two 13-story buildings in Southern California at a considerable discount due to the escalating challenges in the office market.

• Solid performance: CBRE's CEO Bob Sulentic just got paid. He raked in a whopping $25.9M in total compensation last year, which is a jaw-dropping $13.9M more than what he took home in 2021.

• Deal of the day: A Hines investment fund has made a big splash in the Washington, D.C. office market, snagging a newly completed building and signing on an anchor tenant in one fell swoop.

• Modifying mortgages: In May, the FHA will add a 40-year mortgage option to provide a lower, more affordable payment option for buyers and refinancers in need.

• Property plans: Dolce & Gabbana has teamed up with developer Michael Stern for a Miami condo tower branding project, following other fashion houses in the South Florida market.

Large investors in the real estate market have declined by almost 80%, as reported by John Burns Research, which ana/lyzed 581,000 transactions in the larg/est U.S. markets in Q4 2022 and Q4 2021. Surprisingly, in/vestors owning 10-999 homes have experienced a lesser slowdown, and many of them aren't seen as "market timers."