Lument | February 04, 2022
Lument recently closed a $16.8 million Fannie Mae DUS® loan to acquire Residences at Franklin Park, a 92-unit affordable multifamily community in Denver, Colorado. Timothy Hoppin, director at Lument, led the transaction.
Closing this deal was particularly satisfying, as the loan will allow the sponsor to acquire this 92-unit property and preserve much-needed affordable housing in the Denver area, The sponsor was able to secure a new 20-year Housing Assistance Payment (HAP) contract that will help the community maintain safe, comfortable, and affordable housing."
The sponsor of the loan is Edgemark, a repeat Lument client and well-established presence in Colorado, Texas, and throughout the Midwest.
The property will be managed by Selden Property Management, which currently oversees 17,000 units across Iowa, Kansas, Nebraska, Texas, Illinois, Missouri, and Oklahoma.
The Residences at Franklin Park was originally constructed in 1972 and renovated in 2011. The property consists of one 10-story building situated on 0.56 acres, and its 92 units include studios, one-bedrooms, and larger one-bedroom units with dens. All apartments include a full appliance package, laminate countertops, vinyl flooring in kitchen areas, and a private patio or balcony. Group amenities include a community room, laundry facility, and surface parking lot.
ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, investment sales, investment banking, and investment management solutions. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission.
REAL ESTATE INVESTMENT
FCPT | May 19, 2022
Four Corners Property Trust, a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, is pleased to announce the acquisition of a NextCare Primary Care property for $1.8 million. The property is located in a strong retail corridor in Arizona and is corporate-operated under a net lease with approximately 7 years of term remaining. The transaction was priced at a 6.4% going-in cash capitalization rate, exclusive of transaction costs.
FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.
REAL ESTATE TECHNOLOGY
EMPIRE STATE REALTY TRUST | February 02, 2022
Empire State Realty Trust, Inc. (NYSE: ESRT) announced today three new retail leases signed with AT&T Mobility, Subway, and Le Café Coffee at two of its New York City properties.
10 Union Square East
AT&T Mobility signed its third lease with ESRT for a 3,077 square foot retail space in January 2022. Steve E. Baker of Winick Realty Group, LLC. represented AT&T Mobility in the lease negotiations. Property owner representation was provided by Fred C. Posniak of ESRT and Gene Spiegelman, Andrew Mandell, Richard Skulnik, and Beth Rosen of RIPCO.
Subway signed its second lease with ESRT for a 600 square foot retail space in January 2022. Neil Seth of C&W represented Subway in the lease negotiations. Property owner representation was provided by Fred C. Posniak of ESRT and Gene Spiegelman, Andrew Mandell, Richard Skulnik, and Beth Rosen of RIPCO.
501 Seventh Avenue
Le Café Coffee signed its second lease with ESRT for a 731 square foot retail space in December 2021. Yoel Gorjian represented Le Café in the lease negotiations. Property owner representation was provided by Fred C. Posniak of ESRT.
Quality retail service tenants continue to be attracted to our retail stores located in bustling neighborhoods with high volume foot traffic where their businesses thrive, We are pleased to nurture established retail relationships as we continue to build our roster of high-quality retailers who also provide great amenities for our office tenants."
Fred C. Posniak, SVP, leasing at Empire State Realty Trust.
About Empire State Realty Trust
Empire State Realty Trust, Inc. (NYSE: ESRT) is a NYC-focused REIT that owns and manages a well-positioned property portfolio of office, retail and multifamily assets in Manhattan and the greater New York metropolitan area. Owner of the Empire State Building, the World's Most Famous Building, ESRT also owns and operates its iconic, newly reimagined Observatory Experience. The company is a leader in healthy buildings, energy efficiency, and indoor environmental quality, and has the lowest greenhouse gas emissions per square foot of any publicly traded REIT portfolio in New York City. As of Dec. 31, 2021, ESRT's portfolio is comprised of approximately 9.4 million rentable square feet of office space, 700,000 rentable square feet of retail space and 625 units across two multifamily properties.
MORTGAGE AND LENDING
First Street Foundation | May 16, 2022
First Street Foundation released the First Street Foundation Wildfire Model, the only nationwide, probabilistic, climate adjusted, peer reviewed, property specific wildfire risk model for properties in the contiguous United States. Detailed in the 5th National Risk Assessment: Fueling the Flames, the model provides a first of its kind analysis of the risk individual properties face from damaging wildfires, and up to 30 years in the future as a result of climate changes.
Nationwide, the report finds nearly 20 million properties face "Moderate" risk, (up to a 6% chance of experiencing a wildfire over 30 years); 6 million properties face "Major" risk (up to 14% risk over 30 years); nearly 3 million face "Severe" risk (up to 26% over 30 years); and approximately 1.5 million face "Extreme" risk (greater than 26% risk over 30 years). Over 49 million properties face less than 1% chance of experiencing a wildfire over a 30-year period, or "Minor" risk in the model.
Wildfire has become one of the most common and dangerous climate perils, increasingly spreading from heavily forested areas to more populous urban and suburban environments. According to NOAA, damage associated with wildfires has grown substantially, with $81.7 billion, or 66% of all direct losses since 1980, occurring in the last five years. Yet today, neither the public nor private sector have developed a simple methodology or tool to help homeowners, buyers or renters understand a property's wildfire risk, and make informed decisions to protect them.
Existing tools like USDA Forest Service's wildfire risk assessment are designed to help fire officials understand how risk varies across a state, region, or county; it is explicitly not meant to help homeowners understand their personal risk. To address this gap, First Street Foundation will make this critical wildfire risk information available to users for free through Risk FactorTM, where Fire FactorTM data will be presented alongside Flood Factor and other future perils, giving users a comprehensive understanding of their homes from physical climate risk today and 30 years into the future. Like Flood Factor, Fire Factor data will be integrated into Realtor.com, providing visitors to the site a property-level wildfire risk assessment in the form of a risk ranking from 1 (Minimal) to 10 (Extreme) for each property on the site. Users interested in commercial real estate can also find this data integrated with Crexi.
"The lack of a property specific, climate adjusted wildfire risk for individual properties has severely hindered everyone from the federal government to your average American," said Matthew Eby, Founder and Executive Director of First Street Foundation. "As a changing climate drives more frequent and severe wildfire events, Fire Factor will prove critical in ensuring everyone has the insights they need to understand their personal risk to avoid and protect against the devastating impact of a wildfire."
According to a recent Realtor.com survey, seven out of ten recent homebuyers considered the risk of natural disasters when deciding where to live. Realtor.com is adding Fire Factor to maps and properties to help home shoppers and homeowners make informed decisions. Wildfire risk information empowers consumers to protect their homes against the increasing threat of wildfire damage."
Sara Brinton, Lead Product Manager, Realtor.com
Building the model brought together top climate and data scientists, technologists, and modelers from other leading organizations; the Spatial Informatics Group, Reax Engineering, and Eagle Rock Analytics who are members of the Pyregrence Consortium as well as the USGS, and architectural design & engineering consulting group Arup. This group combined decades of peer reviewed research and expertise in next-generation modeling techniques to create an open source, freely available wildfire model that accounts for current and future climate conditions.