News & Events
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intelligence
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January 20, 2020
Commercial Banking
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Jan 16 -
By the end of this year, Bank of America's private banking arm aims to double its advisor force from 2014 levels to 600 and expand to 40 markets from 20 in 2017. Last year, the wealth division, which caters to individuals with at least $3 million to invest, added 64% more households in 2019, helping the unit end the year with a record of $288 billion in assets under management. The business launched new initiatives in partnership with the investment and corporate banks to increase the amount of chief executives using the private bank to manage their personal wealth. That's helped grow referrals between the private bank and other businesses by 30% to 7,000 in 2019. The business is also looking to strengthen its presence in growth markets like Northern and Southern California.
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Jan 15 -
Wells Fargo and Enterprise Community Partners started the application process for the Housing Affordability Breakthrough Challenge, a nationwide search for the most innovative, scalable and viable ideas to increase housing affordability solutions. The competition will award six grants of more than $2 million each, in addition to providing two-years of technical assistance from Enterprise to help turn the grantees' concepts into reality. Winning proposals will detail scalable solutions that specifically address one of the challenge's three focus areas: housing construction; housing financing; and resident services and support.
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Jan 13 -
Speaking at the JPMorgan Chase Healthcare Conference, Ambar Boodhoo, EY Americas Life Science Deals Leader, discussed JPMorgan Chase's upcoming healthcare partnerships for 2020 and how they compare to the bank's collaborations in 2019. Without being specific, Boodhoo predicts several smaller partnerships in 2020 with a value of less than $200 million. This contrasts with 2019, which saw four or five larger deals worth about $380 billion. Boodhoo says despite the smaller deal volume in 2019, it is easier to create value with the smaller deals.
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Real Estate Finance
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Jan 16 -
The partnership, comprised of Nightingale Group, and Kuwait's sovereign wealth fund, Wafra, closed on its $175 million purchase of 111 Wall Street from Zurich Insurance, and their leasehold on it will last for 49 years. The owners landed a $110 million acquisition loan from SL Green. The property spans about 1 million square feet. The new owners plan to renovate it with as much as $150 million worth of upgrades that will include a new lobby and a tenant lounge.
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Jan 16 -
Kushner Cos. is in contract to pay $266.5 million for a portfolio of seven rental buildings in N.J. and N.Y. from First Real Estate Investment Trust of New Jersey. The portfolio totals 1,058 units in garden-style apartments in the N.J. towns of Wayne, River Edge, Westwood Hills, Rockaway and Redbank; and in Middletown, N.Y. There's also a high-rise apartment tower in Hackensack, N.J., which is the largest development in the portfolio at 266 units. The deal is expected to close in the second quarter of the year.
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Jan 16 -
Broadstone City Center, a company tied to Alliance Residential, sold the 315-unit Broadstone City Center at 499 Evernia Street. The mid-rise development, which spans a city block in downtown West Palm Beach, traded for about $329,000 per rental. The building, which includes a three-story clubhouse, rooftop deck and pool with cabanas, was completed in 2018. The average monthly rent at Broadstone is $2,190. It was 91% leased when it sold.
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Commercial Bankruptcy
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Jan 16 -
KRS Global Biotechnology, a Boca Raton, Fla.-based drug compounding facility, filed for Chapter 11 bankruptcy following unforeseen business circumstances. The drugmaker once employed 160 people and was named a finalist for Florida Manufacturer of the Year by the state's manufacturing association in 2016. In September 2019, KRS Global issued a voluntary recall of all lots of its unexpired human and animal drugs due to lack of sterility assurance. In its bankruptcy filing, the drugmaker claimed less than $50,000 in assets and up to $50 million in liabilities.
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Jan 15 -
Two hospitals in West Virginia will continue to operate while their parent company works its way through Chapter 11 bankruptcy. A First Day Motions hearing was held in U.S. Bankruptcy Court in Charleston in the Thomas Health Systems case. Thomas operates both Thomas Memorial Hospital in South Charleston and Saint Francis Hospital in Charleston. Thomas Health has listed its debts between $100 million and $500 million and its assets between $1 million and $10 million. Its largest creditors are bond holders connected with construction projects at Thomas Memorial Hospital during the past decade.
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Jan 13 -
Alta Mesa Resources' oil and gas pipeline and storage subsidiary Kingfisher Midstream filed for Chapter 11, joining its bankrupt parent, with the plan of pursuing a joint bankruptcy sale. Kingfisher, which transports and stores oil and natural gas for drillers in Oklahoma's Anadarko basin, had spent the past four months marketing its assets for a potential sale independent of its parent, receiving four initial letters of intent from interested bidders, according to a document filed by Kingfisher's attorneys to the U.S. Bankruptcy Court in Houston. However, as the proposed purchase prices weren’t enough to cover Kingfisher's $224 million debt load, the company decided the auction would have to take place in bankruptcy to deal with existing liens and claims on the business’s assets, Kingfisher's Chief Financial Officer John Regan said in a declaration filed with the bankruptcy court. Alta Mesa filed for bankruptcy in September after it failed to generate expected production volumes in the Stack drilling region in Oklahoma.
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