CC Residential, the developer of Signature at Doral, a 342-unit apartment tower, has received a $42 million loan from PNC bank to continue construction on the project, according to the South Florida Business Journal. The money will also be used on the developer’s second venture, Signature at Davie, which consists of 350 rental units. Both projects are in conjunction with the New York-based developer Area Property Partners. “We are pleased to be working with PNC on this apartment project where construction is underway and leasing is slated for this summer,” said Andy Burnham, COO of CC Residential. [SFBJ]
Posts Tagged ‘pnc’
Banks are contracting their retail branches for the first time since 2002, according to research firm SNL Financial. After a decade of visibly aggressive expansion that pushed the number of bank branches up more than 15 percent nationwide, their parent corporations are reining things in. In particular, JPMorgan Chase and PNC Financial Services Group, which have each swallowed up the operations of smaller financial institutions since the downturn began, are closing hundreds of branches in order to limit overlap. But they’re not the only ones. With profits down and cost-cutting on the agenda, many banks that have survived the recession are becoming reluctant to spend the $1 million it typically costs to build new brick-and-mortar locations, which tend not to turn a profit for at least two years after opening. Birmingham, Ala.-based Regions Financial is closing 121 branches in the first quarter of this year in a move that should save $21 million per year. JPMorgan had 5,154 branches nationwide at the end of 2009, a 5.9 percent decline from a year earlier. Still, while it’s contracting on the whole, the bank is homing in on underserved areas: a slew of Florida Blockbuster stores are currently being converted to JPMorgan branches. [WSJ]
Atlantic Equities’ Richard Staite has named PNC and US Bank as “underweight,” fueling speculation that the commercial real estate market will continue to ravage the banking industry. Both PNC and USB have over 50 percent of their loans in commercial real estate, compared to Bank of America and JPMorgan who have around a third of their loans tied up in commercial properties, according to Bloomberg’s Adam Johnson. Referring to Staite’s findings, Johnson said that PNC and USB’s weakness shows that the commercial real estate market is still dropping. “Commercial real estate has only begun to crack,” Johnson said, “because businesses were able to hold on longer than individuals.” Johnson also noted that leverage in the form of tangible common equity at the two banks is still relatively high — about 3.7 percent for PNC and 5.5 percent at USB — yet those figures aren’t on par with comparable banks that maintain about 8 to 10 percent.