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Instead a deal is now being negotiated to trim the size of the property's $240 million mortgage and potentially extend the loan at below-market interest rates in an attempt to revive the property's fortunes. The negotiations show that as hundreds of billions of dollars of commercial real estate debts come due or have already tumbled into default, deals are being arranged behind the scenes to try to stave off financial catastrophe. More borrowers and lenders have sought to buy timeThere is mounting evidence that such negotiations are taking place more widely. There have been concerns that trillions of dollars of upcoming commercial property debt maturities could inflict heavy losses that could weigh on investors and lenders across the property market and even cause systemic issues in the banking sector. The deal is part of a growing number of sales by some lenders to cut down their exposure to commercial real estate.
Persons: Realty, Michael Maturo, we'd, Maturo, Jack Terzi, Terzi, Jamie Woodwell, Stephen Buschbom, Trepp, Alan Todd, David Blumberg, Raymond Boyd, Blumberg, Robert Ivanhoe, Greenberg Traurig, Ivanhoe Organizations: New, Aareal Bank, Business, JTRE Holdings, Mortgage Bankers Association, Treasury Department, Bank of America, 601W Companies, Aon, Aon Center, Federal Reserve Locations: New York, Lower Manhattan, Manhattan, New York City, Chicago
That's not to say predictions of a commercial real estate rebound are a sure bet. Here are four signs that support Gray's prediction that the commercial real estate market may be bottoming. (New York Community Bank had previously purchased $2.7 billion in Signature's loans and deposits, but not the real estate loans.) According to David Seifert, partner at private equity real estate firm Velocis, there are some sweet deals to be had in secondary sales of private-equity funds tied to real estate. The road aheadWhere Gray sees signs of bottoming, others think commercial real estate has much further to fall.
Persons: Warren Buffett, Buffett, Paul Getty, Getty, Steve Mnuchin —, Blackstone, Mnuchin, Donald Trump's, George Soros, John Paulson, It's, Jonathan Gray, Jim Garman, That's, Barry Sternlicht, Gray, Tracy Chen, Chen, BGO, secondaries There's, Ares, Brian King, King, David Seifert, Seifert, Velocis, Goldman Sachs, Dan McNamara, McNamara, Scott Rechler, wallop, Janet Yellen, Rechler, there's Organizations: Business, Goldman, Reuters, Starwood, Brandywine Global, Federal Reserve, . Bank, New York Community Bank, FDIC, Signature Bank, Community Bank, Fund Management, Community Preservation, New, Commercial Observer, Blackstone, Homes, Digital Realty, Polpo, RXR Locations: Blackstone, , New York, New York, BREIT, Real, Velocis
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCommercial real estate experienced stages of grief, 'now we're at acceptance': RXR Realty CEOHosted by Brian Sullivan, “Last Call” is a fast-paced, entertaining business show that explores the intersection of money, culture and policy. Tune in Monday through Friday at 7 p.m. ET on CNBC.
Persons: Brian Sullivan, Organizations: RXR, CNBC
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe real estate debt problem still hasn't been dealt with, says RXR Realty CEO Scott RechlerScott Rechler, RXR Realty chairman and CEO, joins 'Squawk Box' to discuss the state of the commercial real estate market, why he's expecting a 'slow moving train wreck' for regional banks, the weight of real estate debt, and more.
Persons: Scott Rechler Scott Rechler, he's Organizations: RXR
RXR Realty CEO on commercial real estate risks
  + stars: | 2024-02-06 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO on commercial real estate risksRXR Realty CEO Scott Rechler joins 'Squawk on the Street' to discuss why Rechler's been so outspoken about troubles in the commercial real estate sector, if it's too early to put capital to work in real estate, and more.
Persons: Scott Rechler, Rechler's, it's Organizations: RXR
Watch CNBC's full interview with RXR Realty CEO Scott Rechler
  + stars: | 2024-02-06 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with RXR Realty CEO Scott RechlerRXR Realty CEO Scott Rechler joins 'Squawk on the Street' to discuss why Rechler's been so outspoken about troubles in the commercial real estate sector, if it's too early to put capital to work in real estate, and more.
Persons: Scott Rechler RXR, Scott Rechler, Rechler's, it's Organizations: RXR
Regional bank stocks, in particular, gained as much as 35% before the bond warnings and downgrades began. The higher interest rates bond analysts cited hurt profits some, but most banks' net interest income and margins were higher than a year before. The ratings actions pushed the regional bank stock index 10% lower for the month-long period ending Sept. 8, according to Morningstar (the Moody's bank warning was issued August 7). By any reckoning, the argument about banks is about two things: Interest rates and real estate, specifically office buildings. The average regional bank stock rose 8% after earnings, Morgan Stanley said, with banks beating profit forecasts by an average of 5%.
Persons: Morningstar —, downgrades, Morgan Stanley, Jill Cetina, Cetina, Banks, Goldman Sachs, Jan Hatzius, Scott Rechler, Jeff Greene, Alexander Yokum, Dick Bove, Bove, Yokum Organizations: First, JPMorgan, Bloomberg, Getty, Moody's Investors Service, Poor's, Fitch, Morningstar, Federal Reserve, Fedwatch, RXR, Research, Odeon Capital Locations: First Republic, Regional, Moody's, U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO on commercial real estate: There are going to be losses for banks and investorsScott Rechler, RXR Realty chairman and CEO, joins 'Squawk Box' to discuss the state of commercial real estate, which has been slowly ticking back up with more companies requiring employees to return to work in person, the impact on banks, and more.
Persons: Scott Rechler Organizations: RXR
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit crunch compounded by office vacancies could have broad economic impact: RXR's Scott RechlerScott Rechler, New York Fed board member and RXR Realty chairman and CEO, joins 'Last Call' to discuss how a rise in office vacancies could have sweeping implications for the economy.
Persons: RXR's Scott Rechler Scott Rechler Organizations: RXR's Scott Rechler Scott Rechler , New York Fed, RXR Realty Locations: RXR's Scott Rechler Scott Rechler , New
Commercial real estate is probably the next pain point for regional banks and the stock market, according to BofA. The bank noted that US regional banks account for 68% of all commercial real estate loans. The weakness in commercial real estate is evidenced in current market prices for stocks and debt tied to the sector. This is a perfect storm for regional banks because they have so much exposure to commercial real estate loans. According to Bank of America, US regional banks account for 68% of commercial real estate loans, much more than their mega-cap banking peers.
RXR Realty CEO points out real estate's biggest problems
  + stars: | 2023-03-20 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRXR Realty CEO points out real estate's biggest problemsScott Rechler, CEO of RXR Realty, joins 'Squawk Box' to discuss the pressures in the commercial real estate market, why the real estate market was surprised by the higher rate environment, and more.
Office owners like Brookfield, RXR, and Related are in the process of defaulting on office loans. Some of real estate's biggest names have defaulted on their office debt in recent weeks. The delinquency rate for office loans is only 1.83% now, according to Trepp, a firm that researches real-estate debt. Loans come dueOver this year and next year, 24% of commercial real estate loans will be coming due, many of them office loans, per Hendry. Office buildings, from the newest and shiniest Class A towers to the older and less-sexy Class B buildings, were a pretty safe investment, as long as they were in the right locales.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSome buildings post-pandemic are 'not going to be competitive as office buildings anymore' says RXR's RechlerScott Rechler, CEO of RXR Realty, joins 'Squawk on the Street' to discuss his thoughts on return to work and his outlook for commercial real estate.
Real estate and private equity leaders, who have long helped to fill Sinema's campaign coffers, contributed to a healthy cash haul for the senator in the final months of last year. At the lunch, Sinema discussed the incoming Congress and how the tight margins in both chambers could create gridlock, according to attendees. Sinema's campaign had already seen more than $2 million from the securities and investment industry since the 2018 election cycle. The Sinema campaign saw dozens of contributions totaling over $145,000 from people who work at Apollo Global Management, another giant private equity firm, since October. Suzanne Clark, CEO of the massive pro-business lobbying group U.S. Chamber of Commerce, also donated $1,000 to Sinema's campaign on Dec. 31, the new FEC filing shows.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFocus real estate investments on what's competitive in a post-Covid world, says RXR's Scott RechlerScott Rechler, CEO and chairman of RXR Realty, joins 'Squawk on the Street' to discuss real estate demands for businesses returning to in-person work, the impact of layoffs and office demand, and the growth potential for real estate developments.
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