TOLEDO, OH – FOURMIDABLE, a diversified, national real estate management and brokerage company that specializes in managing public housing, tax credit, market rate, affordable, senior and condominium communities, announced their expansion into the Toledo market.

FOURMIDABLE was awarded the management contracts for Collingwood Green Phases I, II and III in Toledo, Ohio. Collingwood Green Phase I is a senior community consisting of 65 one and two bedroom apartments of which 33 units will be public housing. Collingwood Green Phase II is a 68-unit family community consisting of two and three bedroom townhomes, of which 34 units will be public housing. The newly constructed housing developments are mixed-finance and mixed-income communities, which are being developed using Capital Funds received by the Lucas Metropolitan Housing Authority. 

Phase III, a 55-unit townhouse family development that is a continuation of Phase II, started construction in November 2018 and is expected to be completed in December 2019. 

“FOURMIDABLE is proud to have been selected as the Management Agent for Collingwood Green. We are especially excited to be working with the Lucas Metropolitan Housing Commission to fulfill our mutual goal of providing quality housing to the residents of Collingwood Green,” said Michael Schocker, President of FOURMIDABLE. 

FOURMIDABLE was also awarded the management contract for Ashland Manor in Toledo, Ohio, a Section 8 community consisting of 189 units. Ashland Manor offers many amenities to their residents, including an on-site Service Coordinator, security service and ample common areas and amenities. The new owner plans to enhance the community’s curb-appeal through landscape improvements and will also concentrate on hallway improvements and enhancements.  

Ashland Manor was bought by Lucas Urban Holdings, LLC, a new client of FOURMIDABLE. “We could not be more pleased to add the Ashland Manor property to our portfolio, along with our newest partner in Lucas Urban Holdings,” added Mr. Schocker.   

FOURMIDABLE currently manages nine apartment communities in Ohio consisting of over 960 units.

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NEW YORK, NY – Trepp, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its April 2019 US CMBS Delinquency Report. 

The Trepp CMBS Delinquency Rate fell six basis points to 2.82% in April. That level is now the lowest delinquency reading observed since the 2008 financial crisis. April’s rate cancels out the marginal increase in delinquencies from March when the reading inched one basis point higher to 2.88%. The delinquency rate has decreased by 154 basis points year over year.

“The CMBS sector continues to chug along nicely,” said Trepp Senior Managing Director, Manus Clancy. “Spreads have squeezed tighter thanks to favorable economic conditions, and distressed legacy debt continues to be resolved at a healthy clip. Even though there are some soft spots in the market, such as retail and student housing, issuance and performance continue to be steady and largely volatility-free for now.”

For the second time in the last three months, the retail delinquency rate posted the greatest improvement among major property types. The retail reading shed 28 basis points to 4.62% in April, but it remains the worst performing major property sector. Hotel delinquencies are still at the lowest level of all major property types, as the lodging rate fell five basis points to 1.55% last month. The industrial delinquency rate climbed eight basis points to 2.10%.

Delinquencies among CMBS 2.0+ loans jumped five basis points higher to 0.70% in April. The CMBS 2.0+ delinquency rate has only increased by 15 basis points year over year, but that reading has improved in just four of the last 12 months. The delinquency rate for CMBS 1.0 debt went one basis point higher to 46.46% in April. Retail loans are also the worst performing sector in the CMBS 1.0 space, as that reading was 61.65% last month.

The full report can be accessed at Trepp.com

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SMALL ROCK, AR – BSR Real Estate Investment Trust announced that it has sold four noncore assets as part of the REIT’s portfolio enhancement and capital recycling strategy. The total consideration of $31.7 million exceeded the initial public offering appraised values by $1.3 million or 4.3%. 

The transactions include Briarwood Apartments, built in 1972 with 280 apartment units, and Spring Valley Apartments, built 1975 with 245 apartment units. Both are located in Small Rock, Arkansas. Also included were Fox Trail Apartments, built in 1971 with 144 apartment units, and South Pointe Apartments, built in 1972 with 104 apartment units, both located in Shreveport, Louisiana.  

“We have consistently said our plot is to recycle capital into core markets, by selling properties that no longer meet our long term growth strategy,” said John Bailey, Chief Executive Officer of BSR REIT. “Through these property sales, we have crystallized the benefits of the upgrades previously performed, allowing us to redeploy the capital to other properties where we can maximize our platform’s capabilities and capital redevelopment program, thereby, increasing unitholder value. We have bought four properties since going public in May 2018 . These buys are aligned with our acquisition strategy, as the properties were built after 1990, clustered in target markets and were bought with a clear potential for higher rent utilizing the BSR platform.”

Of the net cash proceeds of $30.6 million from the above mentioned sales, $19.4 million was used to retire related mortgage financing and $11.2 million to reduce the balance outstanding under the REIT’s credit facility, resulting in a Debt to Yucky Book Value ratio of approximately 49.7%. BSR’s portfolio now consists of 47 multifamily properties comprising 10,050 units.

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