Fed Pauses, CMBS Distress, Power LA and Lehman Memories

Fed Pauses, CMBS Distress, Power LA and Lehman Memories This week, we have the words from the High Hand of Finance, as Federal Reserve Chairman Jerome Powell announced that interest rates would remain unchanged for at least the next month. But the ease in interest rate increases hasn’t stopped the distress that’s ravaged markets as of late — case in point: the venerable Shorenstein Properties defaulted on a $350 million CMBS loan tied to an office building at 1407 Broadway in Manhattan. But it wasn’t all warts and worries, as Riyad Bank refinanced its interest in a Tribeca hotel for $60 million, while Brookfield Properties lent $200 million to finance construction of a 242,000-square-foot data center in Virginia. Plus, in a transaction as common as pigs flying, a $38 million CMBS loan on a Class B Office building — you read that right — received an extension. Last, if the present moment in CRE finance is a little too much for you, take a trip down memory lane and listen to those who were there recall what it was like when Lehman Brothers declared bankruptcy 15 years ago, on Sept. 15, 2008. Till next week! Fed Leaves Interest Rates Unchanged But Uncertainty Persists for CRE Market The Federal Reserve left short-term interest rates intact Wednesday, but signaled that another hike could be on the horizon in late 2023. [Read More](   Top Deals Of The Week   - [Brookfield]( Lends $200M on Chirisa’s Latest Data Center Development - [CMBS Loan]( on Philly Class B Office Property Seals 30-Month Extension - Shorenstein Properties [Defaults]( on $350M CMBS Loan Tied to 1407 Broadway - CrossHarbor Capital Partners Makes $38M [Construction Loan]( for Massive Industrial Site - Bravera Bank [Supplies]( $25M Acquisition Loan on North Dakota FedEx Distribution Center Buy - Riyad Bank Refinances [Tribeca Hotel]( With $60M Loan - MF1 Capital Refis [Harlem]( Multifamily Property With $69M Loan - JPMorgan Global Alternatives [Facilitates]( $61M Loan for 4-Property Industrial Deal - Dwight [Refis]( $24M Loan on Apartments in Vancouver, Wash.   Q & A   Dara Friedman, BGO’s Core Plus Manager, On Fighting Market Uncertainty Dara Friedman, a managing director and portfolio manager at BGO — known until recently as BentallGreenOak — dishes on how her team navigates the investment playing field. [Read More]( Lument CEO Jim Flynn Talks Multifamily Outlook Amid Higher Interest Rates Jim Flynn, CEO of Lument, spoke with Commercial Observer about his outlook for the multifamily market in a higher interest rate environment. [Read More](   People Moves   CBRE Appoints James Millon as President of Debt and Structured Finance Millon, who has spent nearly the last four years as co-head of U.S. large loans at CBRE with Tom Traynor, will begin his new role as president of U.S. Debt and Structured Finance starting Nov. 1. [Read More](   Guest Column   The Two-Part Approach for Fighting Climate Change Right Now As thousands gather for Climate Week NYC 2023, many fear it may be too late to turn things around. It’s not. We have the solutions to repair our climate over the long term and deal with the immediate crisis right now. [Read More](   Other Stories From This Week   Lehman Brothers’ Collapse 15 Years On: Lessons Learned From Those Who Were There The events of mid-September 2008 now seem both improbable and necessary. [Read More]( Power LA 2023 Find out who made the cut this year, and why! [Read More]( New York City’s Migrants Surge Enlists a Reluctant Commercial Real Estate Industry Any real solution to New York City’s migrant crisis would have to come from federal policy changes, CRE leaders say. [Read More]( Westcore Pays Over $1B for 16 Industrial Sites in California Commercial real estate investment firm Westcore is paying more than $1 billion for a 3.5 million-square-foot portfolio of fully leased industrial sites in California. [Read More]( Redeveloped Old Train Depots Nationwide Arrive at New Destinations Across the nation, there are dozens of rail stations from the late 19th and early 20th centuries that were once prized commissions for star architects. Now some of them are being restored to something resembling their former glory. [Read More]( CMBS Deal Backed by Suburban Office, Industrial Assets Hits Special Servicing A CMBS loan with $104.7 million in outstanding debt secured by 32 office and industrial properties in Pennsylvania has hit special servicing. [Read More](     What We're Reading This Week   - [The kids]( on the night shift [NYT] - America’s biggest [landlords]( can’t find houses to buy either [WSJ] - Striking [unions]( impacting the economy at a level not seen in decades [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 2023 [Observer Media]( 1 Whitehall Street, Floor 7, New York, NY 10004 This newsletter was published 09/21/2023