What a Week

The sudden closures of Silicon Valley Bank and Signature Bank —- and the general financial unrest those unleashed — reverberated into commercial real estate in myriad ways. One impact that has yet to be fully felt is on CMBS loans. The same’s the case for proptech, which took an especially hard hit from Silicon Valley’s failure given the number of firms that had money there. Stay tuned and hold on.

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— Tom Acitelli, Co-Deputy Editor

Impact of Regional Banking Crisis Threatens CMBS Loans

Several regional banks tied up in the ongoing national banking crisis serve as office tenants in properties backing hundreds of millions of commercial mortgage backed securities (CMBS), according to a Trepp report. Utilizing the properties as both headquarters and branches, First Republic Bank, KeyBank and Charles Schwab Corporation are top tenants in Trepp’s list of CMBS office loans to watch, with those loans ranging from $170 million to $565 million in size. Trepp’s report — compiled as regional bank’s stock prices went into freefall this week — also includes other regional banks that could present potential tenancy risk to CMBS loan collateral, such as Comerica Bank, Huntington Bancshares, Western Alliance Bancorporation and Signature Bank.

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Proptech’s Hot Takes On SVB’s Bank-Run-and-Done Shocker

The spectacular collapse of Silicon Valley Bank (SVB) does not spell doom for proptech’s ecosystem, but over one shocking March weekend it gave the sector’s founders and venture capitalists a warp-speed business experience of the five stages of grief. As if taking lessons from the 1969 Elisabeth Kubler-Ross book On Death and Dying, a vast array of proptech professionals suffered some degree of denial, anger, bargaining, depression and acceptance upon hearing the news of SVB’s failure, and subsequently that of Signature Bank, which has its own dubious history beyond tech startups. Let the finger-pointing begin.

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