Raleigh January 2021 – Key Take Aways
- Spencer Wilson, First Horizon: Debt market remains active; rates are at historic lows in long-term money. Treasury rates have inched up, just over 1%. This is all causing deal activity.
- David Koehler, Rich Walters, Wells Fargo: 10-year treasuries are up 8 – 18 basis points since the GA run-off; short-term rates have not moved. Wells Fargo is pleased, but cautious with income-producing real estate portfolio. Starting today, loans less than $150K are available to previous PPP borrowers. On Jan 17 or 19, larger banks will offer PPP loans for $150K or more.
- Matt Martin, Federal Reserve Bank of Richmond: Community activity pick-up is dependent on vaccine rollout. Travel should pick up in Q3, Q4. There’s some inflation, but on the good side.
- Anna McLamb, Wyrick Robbins: WR is busy; she worked on large office expansion deal in Dec for SAS company, restaurant leases, mergers and opportunity deals.
- John Daly, Marcus & Millichap: SE US had $4B in capital inflow (1/3 from the NE) and $1.2B outflow. John has 3 deals under contract, $100M in value. More investor interest than available properties exist in multi-family.
- Stephanie Sparrow, GFD Management, Inc.: Retailers continue to struggle. In grocery-anchored shopping centers, she’s had 5-6 bankruptcies, but has re-leased 3 spaces.
- Kevin Scanlon, Kirk Bradley, Lee-Moore Capital Company: Considering offering delinquent renters a deal to move-out without penalty, so owners can renovate units in Mebane multi-family investment. First spaces open soon and retail activity is strong in MOSAIC. Industrial is strong in Lee County. Hotels are hurting, but hopeful they come back in Q3, Q4. MOSAIC will have content-rich, co-working space that joins CCCC and UNC on workforce development.
- Tom White, NC State: Elaine Marshall, Steve Troxler will lead the NC Coalition for Global Competitiveness. NC State will launch the Workforce Development Academy in August 2021.
- Marcus Little, Sharon Crawford, Little: Little lost the Carolina Yards 1M SF mixed-use project when Epic Games purchased Cary Towne Center. Little has multi-family, office, science and education activity, including UNC, DPS, NC State and Wake Tech.
- Sam O’Brien, AdVenture Development: Roadway, industrial construction progress in Eastfield Crossing; he’s looking for multi-family development partners and NC VW EV Charging Grant info.
- Vijay Shah, TradeMark Properties: He is working with Popeye’s, Nestle Toll House Café and Meineke. Vijay recently worked on 7 2nd generation restaurant leases. Wake Forest land is hot.
- Scott Hadley, Hunter Stewart, Lee & Associates: 500K SF – 1M SF facility interest on I-85 and I-95 grows. New Bern to Morehead City is growing, with demand for land. Hunter sees $60 – $65K per acre for Wendell single-family and high multi-family numbers ($30K for 318 units on 14 acres). Darden, Chipotle, Starbucks, local hotel operator and FL-based grocer are active.
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