A report from Forbes. "The Federal Deposit Insurance Corporation (FDIC) warned of potential credit and market risks that market participants should definitely heed. In particular, the FDIC’s 2019 Risk Review Report released yesterday highlighted concerns in the agricultural, commercial real estate, energy, housing, and leveraged lending sectors. Additionally, the risk review report covered the significant rise in bank loans to non-banks."

"The report warned that 'overbuilding in some multifamily and industrial segments and oversupply of outdated retail properties may weigh on commercial real estate (CRE) fundamentals going forward.' It is important to remember that during the 2007-2008 crisis, 'banks considered to be CRE lending specialists failed more than twice as often as the average community bank.'"

"All banks should be focusing on the housing sector, because it is slowing down. According to the FDIC 'Signs of a slowdown in sales are emerging in the housing market even as house prices continue to rise across most of the nation. Affordability is a growing concern as income growth lags the rise in house prices and mortgage payments.''

From Fox 17 Nashville in Tennessee. "Sun, swimming and a safe place to live are top on Grace Garret’s list when she looked for a rentals in Germantown. Finding a place wasn’t hard. She had plenty of options around town to choose from, not just because of the price but because of an overflow of vacant units. That’s because realty experts say the residential bubble in middle Tennessee is starting to burst, meaning there are more vacant units than people renting them as supply goes up."

"Rental costs are going down, giving renters like Garrett the advantage. The average two-bedroom is $1,800 and declining. Also, Metro Codes is seeing a sharp decline in the number of permits for new apartment construction. That’s no surprise to realtor John Pegram. 'That snatch and grab market is long gone,' said Pegram."

"He says he saw the residential bubble burst coming three years ago. He says developers clamored to build apartment buildings after seeing the influx of new people moving to town -- but says the area is now over-saturated with available units. 'Three years ago there was that pull and now it’s caught up because it took that long to get those apartments built,' added Pegram."

From Bisnow on California. "Bay Area commercial real estate developers and financiers anticipate a multifamily slowdown coming to the region in three years. Explanations could include worries about flattening home prices, a surge of inventory coming online in the next several years and the looming possibility of rent control, according to the team."

"The incoming stock of Bay Area housing includes tens of thousands of units in the pipeline to house both longtime residents and the flood of new ones. As of June, developers had nearly 30,000 units under construction in the San Francisco, Oakland and San Jose metropolitan statistical areas, according to CoStar Bay Area Director of Market Analytics Jesse Gundersheim."

"'My pessimism comes from hard costs continuing to go up,' said BayRock Multifamily CEO Stuart Gruendl. 'Projects in the pipeline are coming to a halt because deals just don't pencil.'"

The Muskogee Phoenix in Oklahoma. "Urban designers and planners with Oklahoma University's Institute for Quality Communities have been working the past few weeks with a steering committee made up of city officials and community representatives to examine the market. More recently they have engaged in discussions with focus groups to determine what obstacles have stalled development. IQC Director Shane Hampton said the vacancy rate of just more than 17 percent in Muskogee 'is quite high even compared to peer cities.' But he said it is not uncommon 'to have a high vacancy rate and a high need for housing.'"

"Shawn Schaefer, director at OU's Urban Design Studio, pointed to data gleaned from the U.S. Census Bureau. Among the 2,900-plus vacancies, he said 1,855 units lacked complete plumbing. 'If you take those out of the mix, then your vacancy rate is much lower and you are getting down to an efficient market,' Schaefer said. 'That could explain why some of the Realtors have been telling us things are kind of tight, especially in certain segments.'"

From Multi-Housing News on Colorado. "In an interview with Multi-Housing News, David Jaudes, vice president of multifamily development for McWhinney, shares his views on Denver’s multifamily market. What does Denver have to offer in terms of investment/development opportunities going forward?"

"Jaudes: Tougher, as the low-hanging fruit has all been activated. Any site that is zoned by right and in a decent location is priced as such, making returns harder to achieve. We’ve taken on more risk on the pursuit side, jointly working with cities where both parties are looking to rezone certain sections of their city for high-density residential. We aren’t in the acquisition space, but I’m told the value-add B and C product is very crowded, with some sales approaching replacement cost for new class A projects."

From Hotel Business. "This September, alternative lodging service WhyHotel is set to launch a new pop-up in a luxury apartment building in Seattle’s Belltown neighborhood. WhyHotel partnered with AvalonBay Communities Inc., which will operate this project for eight to 12 months. WhyHotel will occupy 50 fully furnished apartments in the 24- story, 275-unit residential high-rise."

"'The pop-up model doesn’t permanently displace any of the long-term housing stock in a given residential building, but rather we only activate the vacant units for short-term stays, and as the building leases up with long-term residents, WhyHotel winds down our footprint in the building until we eventually leave altogether,' said Jason Fudin, CEO of WhyHotel."

The Real Deal on New York. "A senior lender who moved to foreclose on 125 Greenwich, the under-construction residential tower in the Financial District, has sold the debt to a real estate development firm. United Overseas Bank, which provided a $195 million loan to the luxury project’s sponsors, sold the senior debt to real estate development firm BH3 Capital Partners at cost, a person close to the deal told The Real Deal."

"The move spells further uncertainty for the Rafael Vinoly-designed tower, which topped out at 88 floors earlier this year. The project’s sponsors — Howard Lorber’s New Valley, Davide Bizzi’s Bizzi & Partners, the Carlton Group and China Cindat — have defaulted on loan repayments as they have struggled to meet condo sale thresholds. The developers are now facing two foreclosure proceedings."

"The new lender, BH3, is a Miami-based real estate development firm and, given its history of developing projects, it is possible the firm could complete the project itself. Unlike UOB, BH3 is not constrained by the needs of a bank to offload non-performing loans, and the new firm has multiple options for the project’s future, including proceeding with a foreclosure started by UOB this month. In that event, more than $100 million equity in the building and USIF’s $194 million mezzanine loan would be wiped out."