Third Quarter 2021 Dashboard report
Headlines
* The top transfers of 3Q 2021 were asterisk deals and distress deals. Setting those aside the volume of sales was modest.
* Construction lending surged amid a general increase in lending.
* Note sales slowed dramatically.
Sales
*Unidentified investors purchased a controlling stake in Starrett City that more than doubled the value of the property, from $905 million to $1.84 billion.
*David Werner extended his ground lease at 235 East 42nd Street for another 50 years, valued at $406.6 million.
*C-III Capital Partners bought a hotel for $185.3 million from DiamondRock, a distress sale, since DiamondRock bought the hotel for $333.7 million in 2011.
*The ground lease at the Ace Hotel at 1164 Broadway was transferred between two Yucaipa-affiliated entities, valued at $130 million, however tax was paid so there was a real transfer.
Loans
Lending generally increased and construction lending surged, led by residential projects from developers such as Brookfield Properties, TF Cornerstone and the Rabsky Group.
Construction lending:
Most of the top 10 construction loans were provided by frequent lenders or originators, such as the city or Blackstone or Madison Realty Capital. But KKR provided a large loan, as did Pacific Western Bank and Zions Bankcorporation.
Bank Leumi was the most active private construction lender by the number of transaction in the quarter, with six loans recorded. They totaled $414 million. Christopher Gregg of Bank Leumi, said not all of that $414 million would be kept on the bank’s balance sheet, as some gets syndicated to other banks or affiliates.
The chart below is construction lenders for the third quarter 2021.
Distress:
The number of note sales dropped off while the dollar volume dropped even more sharply. The largest note sale last quarter was Invictus buying a $78 million note from Prophet Capital secured by a CW Realty property.
The volume of pre-foreclosure filings declined slightly, but remained in line with the past year.
Most read articles of the past quarter:
ABC Carpet affiliate files for bankruptcy following Normandy’s $7.3M rent suit
All Year Holdings plans $506M sale of The Denizen to Atlas Capital Group
12 adjacent Park Slope parcels including Grand Prospect Hall sell for $30M
Correction: A prior version of this post included an erroneous total for Bank Leumi’s construction loans. The figure has been corrected.