Aggressive Rate Cut and CMBS Loan Distress

Aggressive Rate Cut and CMBS Loan Distress   This week, the Federal Reserve’s long-awaited interest rate cut included a 50 basis point reduction that could spur transaction volume, giving the commercial real estate industry a much-needed shot in the arm. The higher interest rate environment that has persisted since 2022 took its toll on some CMBS loans sent to special servicing, including a $409 million deal backing 17 hotel properties. We also report on Cushman & Wakefield absorbing the entire brokerage team at Progress Capital, marking the continuation of a busy year for people moves in the CRE brokerage industry. CRE Industry Gets Lift With Fed’s Half-Point Rate Cut Central bank enacts 50 basis point reduction — the first cut in four years — in a move CRE professionals hope will spur more deal volume. [Read More]( Top Deals Of The Week   - Gencom Closes on $300M Acquisition of Thompson Central Park Hotel With [$230M](Loan - Apollo Provides $172M in [Construction Financing]( for 144-Unit Luxury Miami Tower - Property Group Provides $135M Construction Loan for [Bronx]( Project - Maxim Capital Group Lends $118M on [Hudson Yards]( Condo Development - Dwight Capital Refis [Utah]( Apartments With $32M HUD Loan People Moves   Cushman & Wakefield Absorbs Progress Capital’s Brokerage Team Cushman & Wakefield enhanced its tri-state capital markets platform by absorbing Progress Capital’s entire brokerage team led by Kathy Anderson, Brad Domenico and Brian Anderson, Commercial Observer first reported. [Read More]( Ripco Hires Michael Winter to Bolster Capital Markets Platform Ripco Real Estate further extended its push into the debt capital markets space with the addition of commercial real estate and banking veteran Michael Winter as a managing director and partner in its debt and structured finance team. [Read More]( Q&A   JLL’s Andy Strand On the Challenging Chicago Office Market The current office outlook in Chicago shows the asset class struggling much like in other major cities. [Read More](   Other Stories From This Week   Battle for Congress to Shape CRE Finance Policy in Washington Control of Capitol Hill in addition to White House will play a large role in crafting the future of the commercial real estate market, according to the CRE Finance Council. [Read More]( Multifamily Investor Cortland Forms Prefered Equity JV With Declaration Partners The multifamily investor is teaming up with David Rubenstein-anchored Declaration Partners Real Estate in a programmatic joint venture that will infuse gap capital for refinancing U.S. apartment properties. [Read More]( David Schwartz’s Waterton Raises $1.7B for Multifamily Investment Fund Schwartz’s real estate private equity firm closed nearly $2 billion in investment capital this month in anticipation of pouncing on distressed debt opportunities inherent in a dislocated commercial real estate market. [Read More]( CMBS Loan Backed by Pittsburgh’s Gateway Center Sent to Special Servicing A $94 million commercial mortgage-backed securities loan secured by iconic office complex in Downtown Pittsburgh has been sent to special servicing due to an imminent maturity default. [Read More]( CMBS Hotel Portfolio Transferred to Special Servicing A $409 million commercial mortgage-backed securities loan secured by a portfolio of 17 hotel properties across seven states was sent to special servicing due to an imminent maturity default. [Read More]( CMBS Loan on Four Stamford Office Buildings Owned by RFR Hits Special Servicing A $247.2 million commercial mortgage-backed securities loan backing four office buildings in Stamford, Conn., has entered special servicing after failing to pay off at its scheduled August 2024 maturity. [Read More]( What We're Reading This Week   - Goldman likes the [commercial real estate debt]( that others fear [Bloomberg] - A $336 Million plan to build housing, retail and an arts hub in [Newark]( [NYT] - Harris victory seen as most likely [election outcome](, according to CNBC Fed Survey [CNBC]   [View in Browser]( | [Advertise]( | [Forward to a Friend]( [Manage your email preferences or unsubscribe]( [Share your thoughts: Help us improve with our quick feedback survey!]( [Commercial Observer]( © Copyright 2024 [Observer Media]( 1 Whitehall Street, Floor 7, New York, NY 10004 This newsletter was published 09/19/2024