A report from the Wall Street Journal. "A strong economy helped lift commercial real-estate sales to near-record levels last year, and many investors are counting on low interest rates to keep sales going in 2019. Now the Federal Reserve’s announcement last week that it would keep interest rates steady could buoy the market further by keeping borrowing costs down, said Sam Chandan, who heads New York University’s Schack Institute of Real Estate."

"'We are a debt-driven industry,' he said."

From The Real Deal. "When the U.S. real estate market collapsed in 2009, banks and lenders were left scrambling to find buyers for their loans that borrowers had defaulted on. Debt funds and vulture funds were able to scoop up some of those bad loans for pennies on the dollar. Now, Churchill Real Estate Holdings says a version of that story could begin to play out in New York."

"In response, the New York-based firm has been trying to raise a $200 million distressed debt fund that will focus on a variety of real estate assets in Manhattan, from failed condo projects to struggling retail properties. Some of the fund may also target parts of Brooklyn."

"The city’s condo market already slowed down in the past year, said Churchill co-founder Justin Ehrlich. 'There is just crickets,' Ehrlich said. 'There is no activity.'"

"Ralph Serrano, managing partner of Miami-based Safe Harbor Equity, a real estate investment firm that focuses on distressed debt, said he is seeing more distressed loans and foreclosures in South Florida's market. Highlighting this point, in 2018 new foreclosure lawsuits jumped 14 percent in South Florida to 9,905, according to Attom Data Solutions, a sign that more homes could be foreclosed upon this year."

"Some of the troubled loans belonged to foreign developers who purchased residential real estate at the height of the market a few years ago, only to be sidelined by an influx of new inventory and the city’s cumbersome regulatory process, which delayed project approvals. Ehrlich says with new condo projects set to be completed in 2019, he’s ready to capitalize on more opportunities."

"'For the condo market, it’s the perfect storm,' Ehrlich said. 'It’s very difficult to get a mortgage and there is enormous amount of inventory.'"

The Commercial Observer. "Boaz Gilad is selling off a big chunk of his holdings, including properties under development and vacant land, Commercial Observer has learned. TerraCRG is marketing the Brookland portfolio, the brokerage confirmed, including five residential properties in Brooklyn that are currently under construction."

"Gilad’s Brookland Capital is facing default in Israel, where he owes $40 million to bondholders. Gilad announced in November that he could not make his bond payments beginning in 2019, and has since ceded control of the entity that controls his operations in Israel."

"Gilad has also defaulted on several construction loans to U.S. lenders, according to a notice filed this week on the Tel Aviv Stock Exchange. As of late December, he was accruing between 19 percent and 24 percent interest on those loans, the documents stated."

"Brookland has roughly 15 properties at various stages of development throughout Brooklyn, in addition to several recently completed projects. The majority are small to medium-sized residential projects that target first-time and millennial buyers, who are in the market in the under $1 million range, Ofer Cohen, head of TerraCRG, said."

From Multi-Housing News. " Development experts gathered during the National Multifamily Housing Council’s (NMHC) annual Apartment Strategies Outlook Conference in San Diego to discuss their development strategies for 2019."

" Secondary tech cities have the most active supply pipelines, with North Dallas, Seattle, Denver and Austin topping the list with the most units under construction. Secondary tech cities also have the highest risk of oversupply over the next two years, Yardi Matrix Vice President Jeff Adler warned, and some markets to watch are Denver, Seattle, Charlotte and Dallas. Although some markets may be at risk of oversupply in the short-term, Adler noted that opportunities still exist outside of the urban core, specifically in intellectual capital nodes."

"'Amenities are amazing, but rarely get used by residents, so we’re thinking more about what the consumer really wants. The key to 2019 will be creativity,' said Kim Bucklew of Alliance Residential Co."

From Globe St. "Markets expected to receive the near-term bulk of new multifamily supply are Dallas, Los Angeles, New York, Washington, DC and Seattle, according to a report by RealPage. Dallas leads the pack with roughly 28,000 units on the way, and with Fort Worth’s production lumped in, that total swells to about 35,000 units underway."

"New supply in these markets will present a challenge to future rent growth. As has been the case for some time now, a gap exists between affordable and high-end apartments."

From WFYY in South Carolina. "A luxury off-campus apartment complex is sinking in Clemson and students were evacuated after repair foam filled their toilets, according to officials. Officials said the 114 Earle St. apartment complex is sinking, with cracks in the foundation, which has caused dozens of college students to have to evacuate."

"The building opened two years ago, but officials said the problem is growing. The building opened two years ago, but officials said the problem is growing. The website advertises 114 Earle as Clemson's newest off-campus community where students can 'live like champions.'"

"Two students, Natalie and Lauren Konopka had only lived in their new apartment for a couple of months before it flooded. 'It was like living in a swamp,' Natalie said. Monthly rent ranges between $900 and $1000 per person."