Mortgage Rates Swing Back up
US mortgage rates rose back above 5%, the average increasing to 5.22% from 4.99% for a 30-year loan last week, Freddie Mac said Thursday in a statement.
This is the first increase since July 21 that has started to calm the pandemic-era frenzy that gripped housing markets across the country. Potential buyers have been sidelined as they struggle to find affordable properties. These days homes are lingering on the market longer, fueling an increase in housing inventory in July, according to a Realtor.com report.
Home builders are now faced with a rise in unsold properties. According to a survey from the National Association of Home Builders and Wells Fargo & Co, confidence among those companies plunged in July as sales and buyer traffic slowed.
“Real estate markets continue on the path toward rebalancing,” said George Ratiu, Realtor.com’s manager of economic research. “These shifts point toward a welcome change for buyers still in the market.”
JLL Secures $585 Million Financing for Mixed-use Development Allston LabWorks in Boston
JLL’s Capital Markets group announced that it has arranged $585 million in construction financing for a mixed-use project of life sciences, retail, and multi-housing space that consists of 580,905 square feet in Boston, Massachusetts.
“We are pleased JLL was able to secure financing for this important site and we look forward to our new lending relationship,” said Mike Diminico, Managing Director, King Street. “The fact that we were able to move quickly on this loan in today’s market conditions speaks to the level of interest and confidence in Allston LabWorks. We are extremely proud of this transformative project and look forward to breaking ground as soon as possible.”
After the completion of the construction, Allston LabWorks will consist of 534,000 square feet of lab space; 20,000 square feet of retail space; 35 multi-housing units, 26% of which will be affordable; as well as a 12,000-square-foot public plaza with an additional 5,000-square-foot landscaped open space and 668 garage parking spaces.
The JLL Capital Markets team representing the borrower was led by Managing Director Greg LaBine and Director Amy Lousararian.
“This is just the first of many deals that will combine the institutional capital base of Brookfield with the exceptional development capabilities and successful track record of the King Street team,” said LaBine. “The lender recognized these attributes early in the process and then delivered on the closing as stated in the midst of a volatile economic climate. This project will be good for the neighborhood, the tenants, and the capital markets participants, and the JLL team was excited to play a role.”
ARC Closes Retail Center Acquisition in Boston’s North Shore
The Aubuchon Realty Company, Inc., (ARC, Inc.) is a diversified commercial real estate firm that completed the $6.6 million acquisition of Dodge Crossing in Beverly, Massachusetts. ARC is already celebrating its 90th year of operation.
ARC particularly focuses on retail opportunities and is aggressively pursuing commercial real estate investments throughout the Eastern United States.
Dodge Crossing is a multi-tenant retail plaza with a 21,350-square-foot center on a 1.3-acre parcel that was enhanced with an updated façade and a new parking lot. This plaza was constructed in 1973 and renovated in the past year.
“Dodge Crossing is a strong retail asset in a desirable Boston submarket,” ARC President, Eamon Moran said. “We have a major appetite, and the dry-powder to go with it, for middle-market retail acquisitions like this and look forward to announcing similar transactions in the quarters ahead.”
ARC’s existing portfolio exceeds 55 assets totaling more than 1 million square feet throughout Massachusetts, New York, Connecticut, Rhode Island, New Hampshire, Vermont and Maine. ARC’s investment strategy utilizes its local expertise and institutional knowledge to generate attractive returns for its shareholders, while positively impacting the communities where it invests.