DENVER, CO – Griffis/Blessing finalized the acquisition of Glenbrook Apartments located in southeast Denver. Glenbrook is a 252-unit, garden-style multifamily community built in 1985 that is comprised of studios, one- and two-bedroom apartment homes, averaging 752 square feet. The community offers residents an outdoor swimming pool, indoor spa and sauna, clubhouse with business center and fitness center, racquetball court and walkable acreage with a pond and fountain.

The Glenbrook Apartment community has not undergone any significant capital improvements since it was built over 30 years ago. Griffis/Blessing believes it is perfectly positioned for a complete upgrade of the amenity package and unit interiors. Improvement plans will entail adding in-unit washers and dryers, upgrading unit interiors and corridors, updating the clubhouse, including the fitness center, pool deck and other shared amenities.

“This asset fits right into our proven value-add investment strategy,” says Gary Winegar, President of Investment Services for Griffis/Blessing. “This community has been held by the original owner since its development in the ‘80s and presents an opportunity to really add value to a well- located property in the Denver market.”

William J. Hybl, Jr., President and COO of Griffis/Blessing states, “We are excited about the addition of Glenbrook Apartments. Its location in a very strong multifamily market and close proximity to major drivers of employment, entertainment and education, as well as both an existing light rail line and one of the newest lines opening soon, will be appealing to renters and make an increase in demand.” 

Rachel Butler, District Manager, will manage the community, while Nicole Harris, Property Manager, will lead day-to-day operations.

The property was bought for $33.4 million. ARA Newmark was the listing broker, and Brady O’Donnell of CBRE arranged the FMAC mortgage.

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MCLEAN, VA – Freddie Mac announced multifamily investing fundamentals grew stronger in the second quarter, both nationally and in all 13 major metro markets tracked by the Freddie Mac Multifamily Apartment Investment Market Index (AIMI). This marks the second consecutive quarter of positive growth tracked by AIMI, a free on-line analytical tool that combines multifamily rental income growth, property price growth and mortgage rates to provide a single index that objectively reflects market investment conditions.

Nationally, AIMI values increased 2.6% in the second quarter to 110.4 from 107.4 in the first quarter. Local markets seeing the largest quarterly gains in their AIMI scores were Washington, D.C. (7.2%), Chicago (7.1%), Philadelphia (5.9%) and Seattle (5.7%).

A rise in AIMI values from one quarter to the next implies an increasingly favorable environment for multifamily investment opportunities, while a decline suggests that attractive investment opportunities are becoming more hard to find.

“The increase in AIMI over the past quarter is due to strong net operating income growth along with a declining mortgage rate environment. These two pieces offset the growth in property prices. Strong demand is continuing to absorb new units despite today’s relatively high rate of construction,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling.

At the same time, the second quarter AIMI index also reflects a moderation in multifamily market’s rate of growth over the past year. Nationally, the AIMI index topped 115 at this same time last year. Locally, AIMI scores have fallen by an average of 4.5 percentage points over that same period of time in 11 out of the 13 metro areas used to compute the index. The only two markets where AIMI had increased compared to this time last year were Chicago (0.7%) and Washington, D.C. (0.6%).

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NEW YORK, NY – Trepp, LLC, a leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its October 2016 US CMBS Delinquency Report.

The Trepp CMBS Delinquency Rate went up again in October, as more loans issued in 2006 and 2007 continue to mature. The delinquency rate for US commercial real estate loans in CMBS is now 4.98%, an increase of 20 basis points from September. The rate is just 25 basis points lower than the year-ago level and 19 basis points lower since the beginning of the year.

In October, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $820 million. Nearly $500 million in loans were cured last month, but a whopping $1.9 billion in CMBS loans became newly delinquent in October.

“Unsurprisingly, delinquency rates continue to drift higher as borrowers with weak performing properties have found it hard to refinance the corresponding loans,” said Manus Clancy, Senior Managing Director at Trepp. “Fortunately, the climb in delinquencies has not been terribly steep. With low interest rates and small spread volatility characterizing the current market, many properties with financials on the cusp of ideal refinancing standards are finding a way to muddle through.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased by the same amount as the overall delinquency rate. The rate of seriously delinquent loans went up 20 basis points for the month to 4.87%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 5.20%.

The delinquency rates for all five major property types increased in October. The largest of those increases belonged to the retail sector, as that reading jumped up 30 basis points to 6.19% in October. The industrial delinquency reading added 26 basis points to 5.54%, while the lodging rate went up 18 basis points to 3.43%.

For additional details, such as delinquency status and historical comparisons, download the October 2016 US CMBS Delinquency Report at Trepp.com

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