Commercial/Multifamily Briefs, September 1, 2022

NewPoint Real Estate Capital Expands Seniors Housing Finance Solutions with New Agency Loan Capabilities

NewPoint Real Estate Capital, Plano, Texas, expanded its financing offerings to include seniors housing Agency loans.

The designation as an approved Fannie Mae Seniors Housing Lender and Freddie Mac Optigo Seniors Housing Lender is a result of the firm’s commitment to the seniors housing and healthcare space and its drive to offer clients a diverse product suite serving the full continuum of care. 

“NewPoint has made a strategic effort to build out the originations, underwriting, processing and servicing capabilities of our Seniors Housing and Healthcare Platform by recruiting the best and the brightest in the industry,” said David Brickman, NewPoint Chief Executive Officer. “This approval from our Agency partners is an indication of their confidence in NewPoint and the strength of our talent.”

NewPoint’s Seniors Housing Agency Platform offers fixed- and floating-rate loans with interest-only options and a variety of prepayment structures. Eligible properties include independent living, assisted living and memory care facilities, as well as facilities with a limited amount (maximum 20% of NOI) of skilled nursing. Terms range from five to 10 years, with up to 30 years for fixed-rate loans.   

In May, NewPoint formed its Seniors Housing Agency Platform to supplement its existing HUD/FHA-focused seniors housing and healthcare financing capabilities. NewPoint hired Sean Huntsman, Managing Director, Seniors Housing Originations and Katherine Stewart, Managing Director and Platform Lead, who brought a combined 50 years of Agency lending experience to the firm. NewPoint established a robust borrower network and originations platform serving the healthcare space with its acquisition of HHC Finance in fourth-quarter 2021. HHC Finance, and now, NewPoint, is a leading HUD/FHA LEAN lender and servicer.

TA Associates to Acquire a Majority Interest in Green Street from Welsh, Carson, Anderson & Stowe

Data firm Green Street, Newport Beach, Calif., announced that private equity firm TA Associates agreed to make a significant growth investment in the company.

Green Street’s current majority owner, Welsh, Carson, Anderson & Stowe, a private equity firm focused exclusively on the technology and healthcare industries, will retain a minority position in the business.

Green Street Chief Executive Officer Jeffry Stuek Jr. and the firm’s senior leadership team, will remain with the company.

The transaction is expected to close in the fourth quarter of 2022 pending customary regulatory approval. Financial terms of the transaction were not disclosed.

Evercore and Lazard are serving as financial advisors to Green Street and WCAS.

CBRE Acquires E2C Technology to Enhance Its Facilities Management Solutions

CBRE Group, Dallas, acquired E2C Technology, an Artificial Intelligence/ Machine Learning data-driven technology company.

CBRE noted it already utilizes E2C’s cloud-based Nexus solution for rapid onboarding of commercial buildings based on AI/ML models for data ingestion, aggregation and normalization. CBRE’s Smart Facilities Management solutions, which includes data and intelligence from its management of billions of square feet, together with the Nexus technology, drives improved facility performance by detecting faults and inefficiencies, reducing energy use and costs, streamlining maintenance operations, measuring and managing occupant experience and meeting increasing regulatory and reporting requirements for environmental sustainability.

In addition to Nexus, the acquisition adds E2C’s expertise to CBRE’s existing talent team. E2C Co-Founder and CEO Anno Scholten joined CBRE with a team based in Dallas and Singapore.

JLL, Poag Shopping Centers Partner to Acquire, Redevelop Mixed-Use Assets

JLL entered into a mixed-use development and management strategic partnership with Poag Shopping Centers. Poag will provide development and redevelopment services for JLL-managed centers across the U.S. while JLL will provide management and operational services to Poag’s 10 high-end, open-air lifestyle centers.

JLL is the largest third-party retail property management company in North America. Under the strategic partnership, the company will partner with Poag on all operations and leasing functions. Poag and its predecessors have developed, managed or leased more than 30 lifestyle centers, totaling more than 8 million square feet including Saddle Creek (the original lifestyle center), Town Center Plaza, Aspen Grove and the Promenade Shops at Briargate.  In addition, Poag worked with Elvis Presley Enterprises to redevelop the Graceland campus in its hometown of Memphis.

Through the strategic partnership, Poag will partner with JLL on its existing pipeline of redevelopment work and intends to grow this platform as more malls and open-air centers strive to adapt. In addition, Poag will work with JLL to answer RFPs for large, complicated, mixed-use developments where they believe integrating a variety of uses such as office, retail, multifamily and hospitality, is where the future of retail is headed.

Properties in the management partnership include: Deer Park Town Center, The Shops at Highland Village, LaCenterra at Cinco Ranch, The Avenue Viera, Roosevelt Collection Shops, The Avenue Peachtree City, The Avenue West Cobb, The Shops at Perry Crossing, The Promenade Shops at Orchard Valley and The Spectrum – Pearland.

NBER Releases Working Paper: Eviction and Poverty In American Cities

More than two million U.S. households have an eviction case filed against them each year. Policymakers at the federal, state and local levels are increasingly pursuing policies to reduce the number of evictions, citing harm to tenants and high public expenditures related to homelessness.

This report studies the consequences of eviction for tenants using newly linked administrative data from Cook County (which includes Chicago) and New York City. It documents that prior to housing court, tenants experience declines in earnings and employment and increases in financial distress and hospital visits. “These pre-trends are more pronounced for tenants who are evicted, which poses a challenge for disentangling correlation and causation,” the report said. “To address this problem, we use an instrumental variables approach based on cases randomly assigned to judges of varying leniency.”

Study authors Robert Collinson, John Eric Humphries, Nicholas S. Mader, Davin K. Reed, Daniel I. Tannenbaum and Winnie van Dijk found that an eviction order increases homelessness and reduces earnings, durable consumption and access to credit. Effects on housing and labor market outcomes are driven by impacts for female and Black tenants.

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