Author: Manager

CREW Charlotte 2016 Excellence Awards

CREW Charlotte celebrated an exciting 2016 at the final luncheon of the year on December 13. We spent the afternoon recapping the successes of 2016 and honoring our members and leaders. The program was accompanied by a live tweet wall that enabled our members to celebrate the accomplishments live via Twitter.  Seven members were presented awards for their outstanding contributions. The awards and winners exemplify what CREW Charlotte embodies in promoting women in leadership in the Commercial Real Estate Industry.  And the winners are:

Rising Star – Mellissa Oliver of LandDesign

Networker of the Year – Dawn Royle of Investors Title

Outreach Award – Carrie Sharp of Indoff, Inc., Nancy Olah of Nancy Olah Law, and Sharon Reed for their work on the Inaugural women’s leadership program, Becoming an Authentic Leader.

Member of the Year – Emily Buehrer of BLOC Design

Presidents Choice – Robin Haddock of RLH Development and Anna O’Neal of Wells Fargo

Deal of the Year – For their work on the Johnston Allison and Hord refinance –  Primax Properties, Parker Poe, Fortenberry Lambert, South State Bank and Investors Title.

In addition to recognizing these tremendous achievements, CREW Charlotte made a donation of $5,000 to Community Building Initiative of Charlotte, NC.

CREW Charlotte November 2016 Luncheon – Commercial Mortgage Back Securities (CMBS) Loans

Submitted by Virginia Luther and Nichole Kelley

What You Missed: Commercial Mortgage Back Securities (CMBS) Loans

Next month there is a new rule coming to the structure of CMBS loans.  But, how with this affect us?
 
CMBS loans are a type of mortgage-backed security backed by commercial mortgages rather than residential real estate.  CMBS tend to be more complex and volatile than residential mortgage-backed securities due to the unique nature of the underlying property assets.  CMBS are bonds created from pools of loans secured by commercial real estate mortgages; each pool of loans is aggregated into a single trust or securitization.  The securitizations are diversified by geography, property type, borrowers and tenant exposure.  Most of these loans have 10 year terms meaning there is a large group of loans that were originated in 2007 and are maturing in 2017. Now that commercial real estate is back up and interest rates are low, there is a healthy amount of capital available to invest.  80-85% of these loans that are maturing are able to refinance successfully.
 
Why might borrowers migrate to other sources other than CMBS loans?
1.      The market was artificially overstated and distorted in 2007
2.      Regulations are now making CBMS loans less cost effective
 
What happens when a borrower defaults and there is a foreclosure due to breach of contract?
–        A receiver comes in to stabilize the asset. Through utilization of the lender’s funds, the receiver reports directly on his/her progress to the court system. Loans rarely go back to the initial borrower and often have complicated maintenance structures, which makes the process of maintaining an asset challenging with layered approvals.
 
On December 24, 2016, Risk Retention occurs for CMBS loans. How does that impact borrowers?
–        Requires a 5% credit risk retention on the sponsor of the securities.
–        Positives: Everyone wants a good experience so sponsors work hard to keep those loans beneficial for all parties. Heavy regulations mean focus on security of all parties and keeps things honest (i.e. airlines, telecom, etc.)
–        Negative: Lose some competitive leverage due to the regulations. More regulations = more expense. Therefore, borrowers will likely pay a higher interest rate.
 
Does the election affect this?
–        It can. As government increases, so does its role in regulations. As well, change in power causes market volatility. If one party holds all the power, change can be more easily put into effect.

CREW Charlotte October 2016 Luncheon – Recent Developments in Charlotte

Submitted by Kathleen Chambers

Who You Missed:
    Chris Daly, Childress Klein
    Kristy Venning, Beacon Partners
    Brendan Pierce, Keith Corp
    Moderator: Allen Clark, Charlotte Business Journal

What You Missed:
Program focused on recent significant commercial real estate developments in Charlotte:

Industrial space – Childress Klein:
•    Examples
Jordan Food Service. 360,000 sq ft distribution center with 150,000 sq ft of refrigerated storage
Afton Ridge.  Started as 125,000 sq ft but is now 300,000 sq ft. 
•    Changes in industrial warehouse development. The facilities are much larger now to allow for larger trucks, significant need for onsite storage. Facilities require lots of land and lots of paving. 
•    Incentives for industrial are different between NC and SC. In SC, the tax rate is higher and so incentives are needed to build on that side of the border. Challenge in NC is lack of space in the Greater Charlotte area.
•    Daly has seen the turn towards larger spaces and longer term leases and so they develop to meet the need
    
Office Space in NC – Beacon Partners
•    Example – 1616 Camden, South End
•    Big changes in demographics going forward brought big changes in needs
•    The millennial work force favors the urban infill experience
•    Less square footage per person required 
•    Explosive demand for open office with exposed structural elements: less me, more we
•    More interest in creating the customer experience
•    Venning predicts that they will not do spec building in the near future

Office Space in SC – Keith Corporation
•    Example: Mortgage Company in Lancaster County. Aided in consolidating the company to one space requiring development of a 100,000 sq ft facility that was augmented during the consolidation
•    Spaces are now amenity driven. Their experience is that the amenities can come to the employees when you build them in to the facility. 
•    Benefits to building in SC because land is available.
•    Lower square footage per employee with new construction. 
•    Noted that rates in SouthPark have increased and new construction is finally underway.
•    Pierce noted that NC has a problem with incentives. There is no cohesiveness to attracting companies to NC. Our competitor states are much better at attracting business through economic incentives.