$144.7 billion worth of commercial property sold in the second quarter of 2021, more than the average for that quarter for years 2015 to 2019. Most popular with buyers are multifamily buildings and properties in Sun Belt cities.
Extended Stay Advantage
While extended stay hotel occupancy dipped in January 2021 amid a second wave of COVID-19 and a slow start to the U.S. vaccination rollout, the segment maintained its occupancy premium over other types of hotels, averaging occupancy 20 points higher than non-extended stay hotels.
CBRE Turner Townsend
CBRE will buy a 60% stake in Turner & Townsend for $1.3 Billion. The deal between world’s largest commercial real estate services firm and London-based project manager targets alternative energy efforts.
Hotel Recovery
Fifty-four U.S. hotel markets (33%) entered the “recovery” category, up from 30% the prior week, but 20 markets remained in the “recession” category, with RevPAR between 50% and 80% of 2019 levels.
Homeowner Delinquencies
The vast majority of the 1.55 million homeowners who are seriously delinquent—meaning they haven’t made mortgage payments in at least 90 days—are in active forbearance. That represents about 2.9% of the 53 million active mortgages, down from a high of about 4.4% in August and September 2020.
Two-Month Recession
The pandemic triggered a two-month recession last year that began in February 2020 and ended in April, making it the shortest on record.
MGM Osaka
MGM Resorts International formally proposed building a $9 billion casino resort in Osaka, reinvigorating its push to open Japan’s first casino gambling facility after pandemic-related delays.
Pre-IPO Market
Nasdaq Inc. is teaming up with a group of banks including Goldman Sachs Group Inc. and Morgan Stanley to spin out its marketplace for shares of private companies. Under current regulations, such deals are typically limited to accredited investors.
Apollo Fortress
Athene Holding Ltd., the insurer and annuity seller backed by Apollo Global Management Inc., agreed to acquire a mortgage lender from Fortress Investment Group as it seeks to pick up assets in the U.K. With the purchase of Foundation Home Loans, Athene will pick up a 3 billion-pound ($4.2 billion) portfolio of mortgages to be managed by Apollo.
Hotel Stocks
The Baird-STR Hotel Stock Index declined by 3% in June, underperforming both the S&P 500 and RMZ indexes, which were both up 2.2% for the month.