Rough Banking Seas Ahead?

[Non Sequitur]

First Foundation bank gets $228 million investment amid troubled real estate market

First Foundation, a Texas-based regional bank with more than half their loans in multifamily residential properties, is getting a $228 million capital...

www.dallasnews.com

"First Foundation, a Texas-based regional bank with more than half its loans in multifamily residential properties, is getting a $228 million capital infusion, led by Fortress Investment Group. The investment reflects a troubled market for real estate amid high interest rates."

Here's the real kick in the arse for shareholders:

"The investors behind the infusion will own 49% of the bank while existing shareholders will retain 51% ownership. Fortress will own nearly 25% of the bank. The deal is expected to close on or around Monday."

And a prediction for 2025-26:

Bank Failure Warnings Have Real Estate Bracing for Impact

Financing from regional lenders have long been a key fuel for real estate. What happens if dozens or hundreds go under?

therealdeal.com

"Days later, Newmark Chair Howard Lutnick warned, “Every single weekend a regional bank is going to go bye-bye,” and predicted 500 to 1,000 failures in 2025 and 2026..."

 

[Terrel L. Shields]

, Newmark Chair Howard Lutnick warned, “Every single weekend a regional bank is going to go bye-bye,” and predicted 500 to 1,000 failures in 2025 and 2026..."

Better get your applications in early with the regulators for a job as review appraiser.

 

[jay trotta]

Rough Seas ahead for many;
Rite Aid is continuing with its tidal wave of closures, with 40 more stores set to disappear in the coming months. The drugstore chain confirmed it would be closing 125 stores in June, all but three being in Ohio and Michigan.

The chain filed for Chapter 11 bankruptcy in October in a bid to reduce its debt and restructure accordingly. Since then, the company has announced in bankruptcy filings the closings of 590 stores.

Eighty five outlets were confirmed to be shut down, predominantly, again, in Ohio and Michigan. Since filing for bankruptcy, Rite Aid has declared the closure of 550 stores in total.

(IMO) As noted in another thread, C-19 collateral damage will continue, as no politicians had/have any plan, they just keep throwing $$$$$$$$ around and Taxes keep soaring. This country is in a world of sheit and little is/has been done.

 

[Terrel L. Shields]

186 banks are considered problematic currently (Norada RE Investments source)

 

[Non Sequitur]

186 banks are considered problematic currently (Norada RE Investments source)

Thanks, interesting article.

Which Banks Are in Danger of Failing or Collapse (2024)

Discover which banks may be at risk of failing or collapsing in 2024. Learn about potential risks and take steps to protect your finances.

www.noradarealestate.com

 

[Joe Flacco]

What is causing multi-family issues?

 

[Fernando]

Rough Seas ahead for many;
Rite Aid is continuing with its tidal wave of closures, with 40 more stores set to disappear in the coming months. The drugstore chain confirmed it would be closing 125 stores in June, all but three being in Ohio and Michigan.

The chain filed for Chapter 11 bankruptcy in October in a bid to reduce its debt and restructure accordingly. Since then, the company has announced in bankruptcy filings the closings of 590 stores.

Eighty five outlets were confirmed to be shut down, predominantly, again, in Ohio and Michigan. Since filing for bankruptcy, Rite Aid has declared the closure of 550 stores in total.

(IMO) As noted in another thread, C-19 collateral damage will continue, as no politicians had/have any plan, they just keep throwing $$$$$$$$ around and Taxes keep soaring. This country is in a world of sheit and little is/has been done.

Prior to Covid, I found many Rite Aid stores for sale. I would go and drive by the ones for sale and the stores would be in state of having no customers or in "dying" locations. Unlike Walgreens at that time, Rite Aid wasn't profitable and owners tried to sell their properties. The writing was on the wall of Rite Aid's demise back then. Learned the hard way by wasting my time in driving to the locations for sale.

 

[Fernando]

I was also looking at bank properties for sale. Prior to Covid, I noticed many Citibank buildings were for sale. Made me wonder if the bank needed cash or downsizing in branches.
I suspect Citibank was not in good financial position and avoided that stock. Chase banks were few for sale but when available, cap rate was too low for me. Chase is strong company.

 

[Terrel L. Shields]

Amusing video

Daddy Powell Don't Bring Me Down (Music Video)

Daddy Powell Don't Bring Me Down (Music Video) The Matt Kohrs Show Trading Discord ⇒ Goonie Discord (FREE Month w/ Code GOONIE): https://bit.ly/GoonieDiscord Sponsors & Affiliates ⇒ Public Trading (Ge

rumble.com

 

[Joe Flacco]

What is causing multi-family issues?

Market-rate, leased, yet delinquent: Higher rates rattle New York multifamily

Floating-rate delinquencies have hit New York multifamily borrowers, signaling that Sun Belt pains are spreading.

therealdeal.com

Apparently the increase in rents is not enough to offset the higher rates.