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8C — June 23 - July 13, 2017 — Mid-Year Review — M id A tlantic
Real Estate Journal
Commercial Mortgage Banking By Brenner Green, Real Property Capital, Inc. Sound the Alarm (well, maybe)
T
he other day I had a moment. Well four moments actually. All
for a solution to his horri- bly overleveraged hospitality portfolio. I wondered “how could someone have lent this guy all this money nearly two years ago.” It was pretty obvi- ous that there was no chance of paying off the debt, and no solution for him. The under- writing and assumptions must have been really aggressive at the time. I told him I couldn’t help. A couple hours later, I re- ceived a quote for the refi- nance of a large apartment construction loan. Ten years interest-only, at leverage that
to me feels like close to 90% loan-to-value. 10 years in- terest-only. And it was from a real lender that I like and trust and do a lot of business with, so I know there’s no bs here. Haven’t seen one of those ten-year interest-only quotes since 2006. Then I read two separate data points, both on Bloom- berg, right at the same time, that got my attention. The first was an article that stated that the San Francisco housing market had gone from first to worst in terms of housing price appreciation according to
a survey by the Federal Hous- ing Finance Corporation. The second article stated that the median price of luxury homes and condos in Manhattan (de- fined as $4 million or more) had dropped to the lowest level since 2013. The reason that this jumped out at me is that while I have no data to prove it, it would be easy to argue that these the two markets have benefitted/expanded the most from the now long in the tooth economic expansion, and somewhat abruptly, they are both showing real signs of topping out or starting down
the other side of the hill. Let me be clear in saying that the capital markets con- tinue to be fully functioning and I am not by any means predicting doom and gloom of the sort that we experienced in the last decade. I would not even go so far as to predict that we will see many properties that have leverage over 100% loan-to-value as the result of a decline any point in the fore- seeable future. But we would all be collectively foolish to ig- nore macro or micro signs that things are frothy or peaking in certain sectors of the real estate economy. I for one, am eyes wide open. R. Brenner Green is a 19- year veteran in commercial real estate finance and President of Real Prop- erty Capital, Inc., a full ser- vice commercial mortgage banking firm based in the Philadelphia suburbs. n C o h n R e z n i c k named among 2017 Best Public Accounting Firms for Women New York, NY — For the fourth consecutive year, CohnReznick , a account- ing, tax, and advisory firm was named to the Accounting MOVE Project’s Best Account- ing Firms for Women List, an- nounced by the Accounting & Financial Women’s Alli- ance (AFWA) and AWSCPA . The 12 firms named to the Best Accounting Firms for Women list demonstrate three key characteristics: • Consistent, measurable progress in advancing women to leadership • Proven and continually evolving programs that retain and advance women • Clear and compelling in- tegration of the business case for advancing women with business results CohnReznick is recognized for consistent measurement of the status of women at each point in the Firm’s pipe- line, which ensures that can- didates for promotion and sponsorship aren’t overlooked. CohnReznick also invests in developing current partners as executive sponsors through coaching and training, so they can demonstrate top-notch sponsorship skills. n
in one day. L a s t t i me around, af- ter the world collapsed in 2008 I later blamed my- self for ig- noring a lot
of the little signs. This time around I have vowed to be more alert, aware, honest with myself and careful. My day started with a call with a potential client looking
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