News & Events
market
intelligence
briefing
September 25, 2020
Commercial Banking
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Sep 24 -
The Citi Global Perspectives & Solutions report posits the lost GDP of systemic and societal racism and discrimination faced by Blacks over the last 20 years to be $16 trillion. This loss includes gaps in wages, access to housing and higher education and investment in Black-owned businesses. The report identifies the underlying causes of the racial and economic gaps exacerbated by the COVID-19 pandemic and discusses the value of closing gaps. The report's authors note that if racial inequity gaps were closed today, the equivalent added to the U.S. economy over the next five years could be $5 trillion of additional GDP.
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Sep 24 -
Bank of America's Workplace Benefits Report reveals 62% of employers feel "extremely" responsible for their employees' financial wellness today, compared to 13% in 2013. This sense of increased responsibility by employers is even greater with respect to their employees' retirement, with 80% feeling very or extremely responsible for helping employees prepare for retirement healthcare needs and costs, up from 22% in 2012; and 78% for preparing employees for retirement income needs, up from 33%. Compared with findings from the bank's 2013 Workplace Benefits Report, these programs today focus on:
- Saving for retirement (81% vs. 70%);
- Planning for healthcare costs (71% vs. 38%);
- Budgeting (63% vs. 14%);
- Saving for college (55% vs. 13%); and
- Managing debt (54% vs. 15%).
In March of this year, 49% of employees rated their financial wellness as good or excellent, down from 55% in 2019 and 61% in 2018. Fewer Gen Z (41%), Millennial (41%) and Gen X (38%) employees rate their financial wellness as good or excellent today, compared with 60% of Baby Boomers and the Silent Generation. Fewer than four-in-10 employees say they have made significant progress toward specific personal financial goals. The top obstacle cited for not achieving their goals is a lack of disposable income after monthly expenses.
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Sep 23 -
Citigroup said it would set aside more than $1 billion to support initiatives that help close the racial wealth gap and increase economic mobility for people of color. The bank said the three-year initiative will include programs that would provide greater access to banking and credit in communities of color, increase investment in Black-owned businesses and expand homeownership among Black Americans.
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Real Estate Finance
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Sep 24 -
Invictus Real Estate Partners secured nearly $107.3 million in Freddie Mac financing to purchase a 464-unit apartment building in Norwalk, Conn. The loan is for The Waypointe, a multi-housing property located at 515 West Ave., that boasts one-, two- and three-bedroom apartments, 93% of which are already occupied. The property also includes 56,000 square feet of retail and restaurant space, 74% of which has already been leased by businesses, including Barcelona Wine Bar, Colony Grill and a JPMorgan Chase bank. The Waypointe's two buildings also feature amenities including two parking garages, a fitness center and an outdoor heated, saltwater pool.
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Sep 23 -
A GDS Development-Klovern JV purchased a property on 10th Avenue in Manhattan, in addition to development rights at a location nearby for $26.7 million. The deal is for the fee title to 116 10th Ave. and for unused development rights at nearby 453 W. 17th St. The 10th Avenue property is a nightclub that had to close when the pandemic hit, and the 17th Street property has a four-story building built in 1950. The properties are in Chelsea between West 17th and West 18th Streets. Seller-side information wasn't disclosed.
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Sep 23 -
Ares Management sold a 580,000-square-foot warehouse at 900 Aviation Parkway in Morrisville, N.C., to TPG for $42.8 million. That's a nearly 60% increase from the $26.85 million Ares paid for the 32-acre property in 2014.
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Commercial Bankruptcy
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Sep 24 -
The operator of the Martinique hotel in Manhattan filed for Chapter 11 bankruptcy protection. Herald Hotel Associates, which runs the boutique hotel at 49 West 32 Street in Koreatown, filed a petition with the U.S. Bankruptcy Court for the Southern District of New York. The company owes between $10 million and $50 million, and has estimated assets of between $100 million and $500 million, according to the filing. With the filing, the company is trying to negotiate with its creditors to get back on its feet. JPMorgan Chase, from which the company obtained a $14 million mortgage, is among the biggest creditors.
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Sep 23 -
It'Sugar, with about 100 candy stores in mostly tourist markets, has $500,000 in cash, with $6.2 million of secured debt and $10.4 million of unsecured liabilities, including unpaid rent. The company reported losses before income taxes of $8.4 million for the quarter ended June 30, and losses of $36.5 million for the six-month period that ended on that date. It'Sugar plans to keep stores operating throughout the bankruptcy proceedings. Its parent company, BBX, still plans to spin off a separate company which will own It’Sugar. The candy store blames its predicament on fewer sales, less demand and consumer behavior. About 60% of annualized It'Sugar sales came from the travel and tourism market.
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Sep 23 -
A U.S. bankruptcy judge in Delaware gave the green light to Chisholm Oil & Gas for a Chapter 11 plan of reorganization that will eliminate $480 million of secured obligations from its balance sheet. The plan will swap the secured debt for new equity in the reorganized company and provide a $3-million recovery pool for unsecured creditors, leaving the drilling firm with $50 million of secured obligations post-bankruptcy.
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