Ian’s Insurance Aftershocks

Hurricane Ian has done catastrophic damage to Florida. It’s also highlighted the ongoing vulnerability of the state’s property insurance market. It was rife with insolvencies and alleged fraud before the megastorm roared ashore. Ian’s damage is only going to worsen the situation, analysts and real estate professionals say. Nothing short of government intervention on a grand scale might save Florida’s property insurance market, in fact. Also, while it was a darling of commercial real estate during the pandemic, investment in the life sciences industry has markedly slowed — though not necessarily in the major markets of Greater Boston, the San Francisco Bay and the San Diego area.

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— Tom Acitelli, Co-Deputy Editor

Ian Stresses Florida’s Teetering Property Insurance Market

Earlier this week, before Hurricane Ian hit, property insurance firm FedNat became insolvent, the sixth Florida carrier to do so this year, and the 11th since 2021. Other insurance companies have pulled out of the Florida market or dropped policies as they’ve tightened conditions, leaving homeowners and landlords with skyrocketing premiums — increases of upwards of 30 percent in some cases — or unable to obtain coverage at all. The crisis has been years in the making, as Florida insurance companies hemorrhaged over $1 billion in cash in both 2020 and 2021. State officials have attempted to address the crisis, passing several reforms during a special legislative session in May, but those measures have not come close to correcting the teetering insurance market.?

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US Life Sciences Investment Dips But Main Hubs Dodge Headwinds: Report

Overall investment in the national life sciences market is shrinking, but the drop in venture capital funding isn’t deterring the sector’s momentum. Pricing and activity in hub markets continues to grow, with both primary and secondary regions riding through new headwinds to get in position for stable expansion. Indeed, the life sciences industry has been negatively impacted by a slowdown in funding, which soared post-COVID but is now ricocheting back toward pre-pandemic levels.

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New York Lender Provides $235M for Elser Condo Refi

A New York lender announced that it closed a $235 million refinancing for the newly built Elser Hotel & Residences in Downtown Miami. The lender is Franklin BSP Realty Trust (FBRT), a publicly traded real estate investment trust specializing in commercial real estate debt. It was formerly known as Benefit Street Partners Realty Trust. The Elser Hotel & Residences is a 49-story, 646-unit condominium hotel at 398 NE Fifth Street. The project was developed by Property Markets Group and Toronto-based real estate private equity firm Greybrook.

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