Inside the lending crisis that rocked real estate... and other top stories from the week

The best national real estate stories from The Real Deal. Apr 02, 2023 [View in Browser]( | [$1 for 1 Month](     In today’s newsletter, we take a look at the ongoing trouble from the banking crisis, the problems with a record-breaking condo buyout in Chicago, Blackstone’s struggles with its Manhattan multifamily portfolio, and more.   Inside the banking crisis rocking real estate The collateral damage from the recent banking crisis could last years, but the bulk of the chaos [unfolded over nine hellish days](. So, what exactly caused two seemingly healthy mid-sized banks to suddenly fold? TRD dug through the details to discover what caused banking’s crucible and how it came to shake the world of commercial real estate. The story shows how rising interest rates can destroy financial models. SVB saw its $120 billion investment in government debt turn from black to red in a relative blink of an eye (actually, it was more like 18 months). Both banks suffered at the hands of spooked depositors — Signature customers, including major New York landlords, pulled out $18 billion in a couple of days. The problem with bank failures, though, is that the U.S. finance industry is tied up in every corner of the global economy. Real estate isn’t immune to the contagion of the recent bank failures. But, some of the consequences are difficult to predict. For instance, a $190 million [condo buyout deal in Chicago is at risk of falling through](, as financing has dried up in recent weeks. But, the buyer, SPNA, didn’t work with SVB or Signature. Instead, SPNA’s alternative lender, a company called Fairchild, blamed the lack of funding on the Swiss banking crisis and the ongoing merger between UBS and Credit Suisse. Fairchild claims the funding will come through eventually, but [after three years of false starts](, the condo’s owners aren’t too optimistic. Not every consequence is negative, though, at least for some companies. Take Signature’s failure, for instance. While some mourn the loss of the bank, Newmark is poised to profit from it. The FDIC hand-picked the firm to [unload $60 billion worth of the failed bank’s loans](. The most likely merchants? Newmark’s new superstars, brokers Doug Harmon and Adam Spies. First Republic may have survived the first wave of the banking crisis, but the lender is still fighting for its life. Its biggest problem is a wolf in sheep’s clothing: its $96 billion worth of “pristine” mortgage loans. About 97 percent of [those loans were made at historically low interest rates](. Now, as rates rise, the real estate lender could be caught out. A side note on First Republic: Its founder, Jim Herbert, is one of the world’s [highest-paid banking executives](. Herbert is a family man, too. He paid his son and brother-in-law a combined $5.7 million for executive and consulting roles in 2021. These and more stories below.   Together with Hoxul New real estate investment paradigm in Riviera Maya? In December 2024 the Riviera Maya will witness the inauguration of what will be a one-of-a-kind luxury apartment complex. [Hoxul](, a real estate development company, is working on a project that aims to stand out from the usual tourist sites. It will offer its clients [three memberships](, which include different benefits and perks. One of these includes access and special prices on the famous Gran Coyote Golf club, a course designed by PGA legend Nick Price.. Visiting places like Playa del Carmen, Tulum, and many other unique sites will make this experience even more enjoyable and all while, simultaneously, having a high ROI. Hoxul is a project that will give investors the chance to participate in a new and promising form of real estate. Using NFT technology as leverage, this company offers affordable and profitable investment plans. Discover everything Hoxul has to offer.   [I'm an image]( [Cash flow from Blackstone portfolio no longer covers debt payments: Moody’s]( Ratings agency Moody’s has downgraded Blackstone’s portfolio of multifamily buildings in New York. A recent appraisal suggests that the debt on the portfolio far outstrips its worth. [I'm an image]( [Inside the turmoil at Chicago’s largest-ever condo buyout]( The largest condo buyout in Chicago’s history is in deep trouble, putting the $190M deal at risk. Its latest challenge? The Swiss banking crisis. [I'm an image]( [Florida’s $711M affordable housing bill becomes law]( Florida Gov. Ron Desantis signed a bill that could pump $711 million into affordable housing for the state.   Advertisement   [I'm an image]( [Brand Studio Agora adds full suite of services to its existing investment management software]( [I'm an image]( [The Flatiron fiasco: How a key blunder left a New York icon in limbo]( The mysterious Jacob Garlick’s questionable $190 million bid for the Flatiron Building was enabled by unusual auction conditions. [I'm an image]( [Trump and Vornado seek loan extension at 555 California Street in SF]( The former president was [indicted in the alleged Stormy Daniels hush money probe]( just a few days after seeking a loan extension on a troubled San Francisco building. [I'm an image]( [Judge deals deadly blow to Tejon Ranch master plan]( One of the Los Angeles area’s most infamous projects took a near-lethal blow yesterday, as a judge rescinded a host of approvals for Tejon Ranch’s 19,000-home project. [I'm an image]( [Brand Studio 14,000 NYC agents and brokers use this one resource to build their business]( [I'm an image]( [Chinese buyers are back in the Bay Area]( After years on the sidelines, Chinese buyers are back in the Bay Area’s housing market, competing for trophy homes. But these house hunters have specific tastes. [I'm an image]( [NRP Group continues DFW multifamily spree]( One of the nation’s largest multifamily developers continues to expand its large Texas portfolio with a second 300+ unit complex in the northern Dallas suburbs.   [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( [YouTube]( [Manage Newsletters]( | [Unsubscribe]( | [Privacy Policy]( | [Subscribe]( | [Advertise]( The Real Deal 450 West 31st Street, New York, NY 10001 ©2023 TheRealDeal. All rights reserved. [View Online](