CRE Mortgage Originations Surge 27% in Q2 Despite Rate Concerns

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Good morning. CRE mortgage originations rose 27% from Q1 2024, driven by increases in hotel, healthcare, and industrial sectors, despite declines in retail, office, and multifamily properties.

Today's issue is sponsored by MHCI Group.

Market Snapshot

Borrowing and lending

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Advertising disclaimer: This issue was sponsored by MHCI Group. Nothing on this page should be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Investment opportunities in real estate are speculative and involve substantial risk including risk of loss of invested capital. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment. Please carefully review all disclosures and disclaimers on the sponsors website.

• Job growth: According to data from the Bureau of Labor Statistics and RealPage, the New York-White Plains metro area has outperformed other US cities in job creation. 

• Fear and Greed: Share your insights in this 3-minute survey to help us understand the current outlook for commercial real estate.

• Art lending: Wealthy individuals are increasingly borrowing against their art collections as sales slow, with the art-lending market projected to exceed $36 billion in 2024.

• Policy insights: Walker & Dunlop Chairman and CEO Willy Walker criticized Biden’s rent cap, supporting Harris' plan for 3M homes through tax incentives.

• Labor market: US jobless claims rose slightly by 4,000 last week, showing gradual moderation in the labor market.

• Worldpac sale: Advance Auto Parts is selling its Worldpac subsidiary to Carlyle Group for $1.5 billion, aiming to simplify its business and enhance profitability.

• Affordable Amazon: Amazon's (AMZN) $3.6B Housing Equity Fund will support 35K affordable homes in Virginia, the Pacific Northwest, and Tennessee.

• Sale: JPMorgan sold an LA apartment complex to FPA Multifamily for $86.1 million, a 25% loss from its 2020 purchase price.

• Doubling down: Developer Proto Property Services plans to double the amount of affordable housing in Coney Island with up to 415 units in a new building.

• Arcadia awaits: Trammell Crow is planning a 359-unit apartment complex in Arcadia near an existing project in the San Gabriel Valley, with 35 affordable units.

• Evolution of IOS: The industrial outdoor storage sector matures with rising demand and prices, attracting institutional capital as owners focus on property enhancements.

• Building success: Dermody Properties secured $1.04B via DPIF IV fund to develop logistics buildings nationwide, focusing on growth and success.

• Clinical expansion: Adams Clinical leased 7.24 KSF at Hutchinson Metro Center in the Bronx for neuro drug development, applauding the campus.

• Sharper shaving: Gillette (PG) plans to redevelop South Boston HQ with housing, commercial space, and a waterfront park, creating a transformative community space.

• Midtown metamorphosis: $75M secured for NYC's largest office-to-residential conversion project at a former Pfizer HQ, with 660 apartments planned.

• Hybrid growth: Demand for office space continues to rise post-pandemic, but employment concerns remain, with slowing growth in key sectors.

• Office expansions: More companies are expanding office space post-pandemic, with 38% expecting growth compared to 20% last year.

• Florida find: Blackstone (BX) is set to buy an oceanfront Hyatt (H) Clearwater resort near Tampa for $200M, featuring 286 rooms and 20 KSF of event space.

• Energizing creativity: HALL Arts Hotel secured $27M in C-PACE financing for upgrades to boost energy efficiency, with Lone Star PACE as the administrator.

📈 CHART OF THE DAY