Cushman & Wakefield has
hired veteran finance executive
Michelle M. MacKay to the
newly created position of chief
Ivy League Schools Amass
Large Land Portfolios
Coronavirus 'Brutal' as Lenders
Hit Brakes on Financing
Much like other everyday activities, real estate transactions are comingto a halt because lenders are holdingback over the coronavirus pandemic.
“The last 72 hours has been brutal on
its effects on transactions,” attorney
Daniel Weede said during the first week
of the market turmoil. “It’s just a stand-
still. The fundamentals are still sound.
Sellers still want to sell property.
Developers still want to buy property. All
of those are there but without the liquid-
ity, without being able to get the debt
and equity and have assurance.”
The Carlton Fields shareholder in
Atlanta and two other attorneys reported
seven transactions among them at a
standstill during this tumultuous period.
The intended buyers of three hotels inNorth Florida, Texas and Georgia havepostponed closing after financing dried,and a hotel development project in Miamialso has been postponed, Weede said.
Attorney Joe Hernandez in Coral Gablessaid a landlord told him about a retailerwho signed a lease but got cold feet aboutopening north of downtown Miami.
Hernandez, who leads the real estatepractice at Weiss Serota Helfman Cole &Bierman, said he advised the two toassess the situation over the next weeksbefore postponing the lease.
Attorney Roland Sanchez-Medina Jr.had two clients cancel their purchasesduring due diligence. The deals coveredan $8 million Miami-Dade County condominium unit and a $5 million warehouse near Miami International Airport.
“I can’t really fault them,” said Sanchez-Medina, a partner at Sanchez-Medina,Gonzalez, Quesada, Lage, Gomez &Machado in Coral Gables. ”Ultimately, ifyou are spending a significant amount ofmoney and you have any doubts, I alwaystell clients, ‘The last thing you want to dois go against your instincts. If yourinstincts are telling you that this is anThe situation mirrors the 2007-2008financial crisis when uncertainty ruledin the global economy, prompting lenders to quickly pause financial deals.
Ivy League universities are traditionally thought of as centers of world-classeducation. But new findings fromReonomy say they, along with otherschools around the country, arealso becoming real estate power playersdue to their impressive collection of assets.
The Reonomy report, which breaksdown the real estate investments andcommercial properties owned by IvyLeague Universities, reveals YaleUniversity is New Haven’s largest landlordand that Harvard University is the wealthiest university in the world, with an endowment of $40.9 billion.
“Universities have always had an interestin investing in real estate, and we have seenthat as endowments have grown, so havereal estate investments off-campus,” saysNikki Russell, Marketing Manager forReonomy.
The other Ivy League schools are alsoamassing impressive real estate collections. Princeton University owns approximately 160 nearby residences, which canbe purchased by eligible faculty and staff.
Princeton provides a Tenancy-In-
Common Program that allows eligible
faculty and staff to enter into a co-owner-
ship agreement with the school to pur-
chase residences within a nine-mile
radius of Nassau Hall or within the city of
Trenton. It isn’t alone in trying to tackle
“As for concerns with housing affordability, there have been some interestingefforts made by Stanford and Princeton