Term Sheet: Freddie’s CEO pick; Basel III’s recalibration; TYKO’s $527m Miami deal
PERE Credit
PERE Credit is the source for insight and analysis on alternative real estate credit strategies.
Finance industry veteran Diana Reid takes on top role at Freddie Mac ; Sidelined bank lenders may have more reason to increase lending with the Federal Reserve scaling back Basel III proposals; TYKO Capital has more Miami ambitions with $527 million financing on tap for Related and Integra’s latest condo construction plans; and more in this week's Term Sheet .
Tips & feedback to Samantha Rowan or email samantha.r@pei.group
They said it
“There will be a lot of equity lost and CMBS that gets in trouble because those buildings were over-levered and there is just no demand at all”
Jeff Blau , chief executive at Related Companies , speaking during a segment this week on CNBC’s Squawk Box, discusses the future of Class B office space in cities such as New York where he expects teardowns to rise in lieu of retrofits or conversions.
What’s new?
Executive addition
Private credit managers with agency lending arms will soon be acquainted with a fresh face at McLean, Virginia-based government sponsored enterprise Freddie Mac. The agency this week hired industry veteran Diana Reid as its chief executive officer and member of Freddie Mac ’s board of directors. Current president and interim chief executive officer Michael Hutchins will continue his role as Freddie Mac’s president with Reid picking up CEO responsibilities. She has more than four decades of experience in the finance industry, including leading the real estate division of Pittsburgh-based PNC Services Group from 2007-19. Read more...
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Miami milestone
Miami’s luxury condominium market saw another significant financing this week, with New York-based private credit lender TYKO Capital originating $527 million of financing for Related Group and Integra Investments ’ planned St Regis Residences, Miami, in the city’s Brickell submarket. The loan on 1809 Brickell Avenue is one of the largest ever done in the city and follows a spate of similar financings tracked in PERE Credit’s Lending Barometer for branded, for-sale residences which include a $600 million construction loan for the Cipriani Residences and a $328 million loan for Baccarat Residences Miami. Read more...
Loan in focus
Scientific method
An affiliate of New York-based Apollo Global Management, Inc. this week provided a $150 million refinancing for Bedford Labs, a 288,000-square-foot, Class A life science building in Bedford, Massachusetts. The sponsor of the asset, a joint venture between Boston-based AEW CAPITAL MANAGEMENT , Boston-based manager Redgate and Luxembourg-based Optimum Asset Management, secured the loan for the property that has been recently converted from a single-tenant office.... read more