As other banks pull back on construction lending, Bank OZK is looking to surge forward. It did $3B in construction loans last year, far and away the largest provider of that type of financing, often seen as the riskiest debt play in the business. It takes pride in lending through all phases of the economic and real estate cycle, staying in the game while others back off. And it makes major profits doing it — a record $171M in Q1. Bisnow South Florida Reporter Matt Wasielewski spoke to CEO George Gleason about how Bank OZK is growing its real estate business “as big as it can be while maintaining discipline.” Read the full story here.
This Morning’s News Billionaire Presses On With New Projects Despite $1B In Defaults (Bisnow): Charles Cohen’s Cohen Brothers Realty Corp. has applied to demolish an office tower on NYC’s Fifth Avenue and replace it with housing. The company owns 12M SF nationwide, most of which is in distress. Read about Cohen’s attempts to rehabilitate his portfolio.
D.R. Horton Announces Chairman And Founder’s Death (D.R. Horton): D.R. Horton announces the sudden death of its founder and chairman, Don Horton. David Auld steps in as the new executive chairman amid the company's mourning period. Read about the leadership transition.
Serbia Greenlights Kushner-Backed Hotel Venture … Protests Erupt (NYT and AP): Serbia has approved a contract with Jared Kushner for a new hotel complex, signaling a significant investment in the region by the former U.S. president's son-in-law. Local protests are now erupting over the real estate project, with critics wary of the implications for local governance and urban development. Read more about the deal and the ensuing protests.
Scrutiny Over Blackstone REIT’s Asset Valuation (CoStar): As questions arise about how Blackstone REIT values its assets, analysis by CoStar shows “the appraisal data from multiple peer nonlisted REITs indicate Blackstone REIT’s property valuations are in line with falling values across the sector” Explore the valuation concerns.
PIMCO's Real Estate Arm Restructures Major Loan (TRD): Columbia Property Trust, managed by PIMCO, has modified a $1.7B loan following a default, emerging from special servicing “with a lifeline from its lenders and a sobering reappraisal" Details on the loan modification.
‘The Most Interesting Condo Market In The Country’ (Bisnow): Condo and townhome sales in Houston hit their lowest number in a decade last year, but extremely limited supply — there are fewer than 100 new high-rise luxury units available across the city — has developers excited about the possibility of building more. Discover the market drivers.
Bank Of America Buy Multifamily Loan Portfolio (BNN Bloomberg): Bank of America is acquiring a $2.9B portfolio of multifamily loans from Washington Federal. Read more.
Rent Declines In Sun Belt (Redfin): Recent reports indicate significant rent reductions in Sun Belt cities, countering previous trends. Rents are climbing fastest in the Midwest. Explore the data.
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