August 2023 – Page 2

ARIXA CAPITAL ANNOUNCES STRATEGIC JOINT VENTURE WITH OAKTREE

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Arixa Capital Advisors, LLC (“Arixa Capital” or “Arixa”) announced the launch of a $100M strategic joint venture, with the ability to upsize in the future, with funds managed by Oaktree Capital Management, L.P. (“Oaktree”) to originate senior secured loans backed by residential and commercial real estate. Arixa Capital is a leading private real estate lender and investment manager, operating throughout the Western United States. The firm has established a successful track record of generating attractive risk-adjusted returns for accredited and institutional investors by providing bridge, value-add, and construction loans for single family and multifamily real estate projects. “Arixa is known for its long-term relationships, built over the course of originating more than $3.5 billion in real estate loans,” said Seth Davis, Managing Director of Arixa Capital. “With the support of Oaktree, a premier global investment manager, we will expand Arixa’s capacity to meet the needs of professional real estate investors and developers who continue to generate attractive investment opportunities and require reliable access to capital for their success.” “As an experienced capital provider in this space, we are thrilled to partner with Arixa Capital and support the expansion of its vertically integrated lending program,” said Jason Keller, Managing Director and Assistant Portfolio Manager of Oaktree’s Real Estate Group. “We are impressed with both Arixa’s historical track record of loan performance and the strategic planning that is driving the company’s future growth.” The joint venture is designed to provide bridge, renovation, and construction loans across residential and small balance commercial real estate projects. The partnership will focus on urban infill markets, targeting opportunities in California, Arizona, and other Western U.S. markets. “We are excited to partner with Oaktree and owe this opportunity to the talented real estate investors and developers who partner with us, year after year,” said Greg Hebner, Managing Director of Arixa Capital. “As an independent lender, we have a personal stake in the success of our borrowers. In partnering with them over the past 13+ years, we know what it takes to build their vision: quick decisions, customized solutions, and exceptional service. This new joint venture provides us with significant additional capacity to continue supporting our clients’ financing needs.” About Arixa Capital Arixa Capital is a leading private real estate lender and investment manager. Founded in 2006, we specialize in providing bridge, renovation, and construction loans to professional real estate investors and developers throughout the Western United States. Arixa strives to deliver exceptional client service through its vertically integrated platform and has developed long-term relationships with a substantial base of repeat borrowers over the course of originating more than $3.5 billion in loans since the firm’s inception. For additional information, please visit Arixa’s website at https://www.arixacapital.com/. About Oaktree Oaktree is a leader among global investment managers specializing in alternative investments, with $179 billion in assets under management as of June 30, 2023. The firm emphasizes an opportunistic, value-oriented, and risk-controlled approach to investments in credit, private equity, real assets and listed equities. Headquartered in Los Angeles, Oaktree has over 1,100 employees and offices in 20 cities worldwide. For additional information, please visit Oaktree’s website at https://www.oaktreecapital.com/. SOURCE Arixa Capital Advisors, LLC

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Affordability isn’t the only priority for U.S. homebuyers, according to Realtor.com®‘s ninth annual Hottest ZIP Codes report; Proximity to cities is key as many companies call workers back to the office For the first time in five years, the suburbs of five major metropolitan areas – Boston, New York, Chicago, Detroit and St. Louis – are represented on the annual Realtor.com® Hottest ZIP Codes Report, marking a renewed interest in commutable homes as much of the country’s workforce returns to in-person work. Americans who have been shopping for a home in 2023, despite limited inventory and high mortgage rates that remain in the 6-7% range, are flocking to areas that are more affordable relative to the rest of the country, less expensive than their nearby metro area, or provide better value, offering more space at a lower price. Located exclusively in the Midwest and the Northeast, each of this year’s top 10 Hottest ZIP codes in America is attracting buyers with homes that are either priced at or below the U.S. median, or are larger in size than the U.S. average. Additionally, homes listed within the Hottest ZIPs received an average of 3.6 more views per listing than in the rest of the country, and sold one month faster than average in 2023. The 2023 Hottest ZIP Codes in America, in rank order, are: “As many companies continue to call employees back to the office, we’re seeing a surge in home shoppers who are seeking a desirable combination of cost and convenience within commuting distance of major metropolitan areas,” said Danielle Hale, Chief Economist for Realtor.com®. “In addition to affordable markets, this year’s list also features some higher priced areas close to large urban cores, which will likely appeal to buyers who are concerned with finding the right mix of size and amenities within reach of a nearby city center.” No. 1 Hottest ZIP: Gahanna, Ohio This year’s Hottest ZIP Code is Gahanna, Ohio (43230), which continues the legacy of Columbus, Ohio markets appearing on the Hottest ZIP codes list. The greater Columbus area offers home buyers the amenities and quality-of-life advantages of a larger town, but at a lower price. It’s home to The Ohio State University, the Short North Arts District as well as a captivating food scene. Homes in this ZIP code were priced 12.7% below the national median in June – and with more than a quarter of its population aged 25-34, it’s favorable for young renters and buyers alike. Suburban space, closer commutes draw home shoppers Looking more closely at this year’s hottest ZIPs, No. 3 on the list, Ridgewood, N.J. (07450), is a high-priced suburb of New York City that offers an idyllic setting with typical listings that are more than double the size of those in the NYC metro and is just a one-hour commute from Manhattan. Shoppers are willing to pay up for these amenities, and homes in the area have a price-per-square-foot that is 7.9% higher than the metro’s average. Residents of this year’s No. 4 ZIP on the list, Andover, Mass. (01810), a suburb of Boston, can commute to the city in under an hour, and the area also boasts larger homes priced 25% lower per square foot than Boston listings. The typical home in No. 9, Pittsford, N.Y. (14534), was 29.3% larger than the median-sized home in the surrounding Rochester metro, less than 30 minutes from the city center by car, and despite the premium to live in this desirable village, listing viewership was more than 30% higher than the surrounding metro. Finally, Ballwin, Mo. (63021), at No. 10 on the list, is similar to these Northeast locales in that listing prices in the area tend to be higher than the metro average, but homes for sale were upwards of 30% larger than the metro’s median home size. Big-city dwellers are driving demand Six of this year’s Hottest ZIP codes – generally those found near big-cities – drew the majority of their property views from within their metro area, suggesting that in many areas, buyers are looking to move around locally. Additionally, those areas seeing significant interest from other locations are typically seeing it come from big-city shoppers. Reflecting this trend, No. 1 ranked Gahanna, Ohio (43230) captured the largest share of out-of-metro viewership among the Midwest metros, drawing 13.1% of its viewership from the New York City area in the second quarter of 2023. In fact, New York City was the top out-of-market viewer for seven of the 10 hottest zips. Size matters: nearly all Hottest ZIPs feature more space In seven out of 10 of this year’s Hottest ZIP codes, the typical home is larger than the average home in the surrounding metro area. Among the more expensive locations on the list, the typical household size is also larger, indicating that home shoppers in places such as Ridgewood, N.J. (07450), Andover, Mass. (01810) and Pittsford, N.Y. (14534) may be shopping for more space to accommodate a larger family. This is particularly true in Ridgewood, N.J. (07450), the most expensive ZIP on this year’s list, where the typical household is 19.7% larger than the U.S. average of two-and-a-half people per household. Homebuyers want affordability Recent near-record high mortgage rates and still-inflated listing prices continue to create affordability challenges for homebuyers, resulting in buyer demand in areas that boast affordability. Seven of the top 10 Hottest ZIP codes offer home prices that are similar or lower than the U.S. median listing price or the prices in their surrounding metropolitan area. Notably, the Midwest saw a post-pandemic boom, as traditionally popular metros became unaffordable and many home buyers looked for value in new locations. Four major Midwest markets on this year’s list are close to city centers, including Columbus, Ohio (43230 No. 1 Gahanna), Chicago, Ill. (46322 No. 6 Highland, Indiana), Detroit, Mich. (48183 No. 7 Trenton, Michigan) and St. Louis, Mo. (63021 No. 10 Ballwin, Missouri). These markets offer homebuyers prices that are 24.7% lower than the U.S. median, as well as a strong local economy and employment rates below the national average. From hot to not: West, South left out Only the Northeast and Midwest are represented in this year’s ranking, the first time in the list’s history that only two regions are included. The South and West regions are not represented among this year’s rankings, leaving out regions of the country that have typically contributed

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Auction.com, the nation’s leading distressed real estate marketplace, released its 2023 Seller Insights report, which shows that 92 percent of default servicing industry leaders expect completed foreclosure auction volume to increase in 2023 compared to 2022 while 85 percent expect home prices to decline in 2023 compared to 2022. The report is based on a June 2023 survey of more than 50 leaders in the default mortgage servicing industry at the Auction.com Disposition Summit in Dallas. Survey respondents included default servicing leaders from mortgage asset investors, bank servicers, nonbank servicers, government agencies and government-sponsored enterprises. Economic conditions will have the biggest impact on foreclosure volumes for the remainder of 2023, according to survey respondents. Respondents also expect roll rates from delinquency to foreclosure to continue to rebound back closer to pre-pandemic levels for the remainder of 2023. Those roll rates dropped to historically low levels during the pandemic with its emergency foreclosure prevention efforts. Nearly half (46 percent) of seriously delinquent loans insured by the Federal Housing Administration (FHA) have enough partial claim capacity to fund the Payment Supplement Account (PSA) that has been proposed by the U.S. Department of Housing and Urban Development (HUD), survey respondents estimated based on their organization’s portfolio composition. Survey respondents said they were 32 percent confident on average that their organization could implement the PSA program within the 180-day window suggested in the HUD proposal. Other survey findings in the report: About Auction.com Auction.com is the nation’s leading online marketplace for the disposition of distressed residential properties. The company goes beyond traditional disposition programs, offering tools and services that stabilize neighborhoods, expand homeownership, maximize sales, shorten the sales cycle, yield higher returns, mitigate risks and elevate results. Our seller strategy includes customized and flexible programs, data intelligence and buyer insights, and pioneering technology. This includes Remote Bid®, which expands the buyer base nationwide by letting buyers bid on and win select foreclosure sales from anywhere, and Portfolio Interact™, featuring Bid Interact™. The national footprint for online and in-person auctions includes all 50 states, as well as Washington, DC, and Puerto Rico. Auction.com is headquartered in Irvine, CA, with offices in key markets nationwide. Contact Daren BlomquistAuction.com Tel.949.355.3371 Email: dblomquist@auction.com

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Count of Vacant Homes in Foreclosure Increases for Sixth Straight Quarter; Zombie Properties Increase as Foreclosure Activity Keeps Growing; But Portion of Homes Nationwide That are Empty in Foreclosure Remains Just One in 11,600 ATTOM, a leading curator of land, property, and real estate data, released its third-quarter 2023 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,277,612) residential properties in the United States are vacant. That figure represents 1.3 percent, or one in 79 homes, across the nation – the same as in the second quarter of this year. The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. Vacancy data is available for U.S. residential properties at https://www.attomdata.com/solutions/marketing-lists/. The report also reveals that 315,425 residential properties in the U.S. are in the process of foreclosure in the third quarter of this year, up 1.3 percent from the second quarter of 2023 and up 16.6 percent from the third quarter of 2022. A growing number of homeowners have faced possible foreclosure since a nationwide moratorium on lenders pursuing delinquent homeowners, imposed after the Coronavirus pandemic hit in early 2020, was lifted in the middle of 2021. Among those pre-foreclosure properties, about 8,800 sit vacant as zombie foreclosures (pre-foreclosure properties abandoned by owners) in the third quarter of 2023. That figure is up slightly from the prior quarter, by 0.3 percent, and up 13.9 percent from a year ago. The latest increase marks the sixth straight quarterly gain. However, it was one of the smallest of the recent increases and continued to leave zombie foreclosures representing just a tiny fraction of the nation’s total stock of 101.6 million residential properties. “Zombie foreclosures again are ticking up a tiny bit this quarter, tracking along with a small rise in overall foreclosure activity around the country. That’s to be expected, as a handful of homeowners who can’t catch up on overdue mortgage payments just walk away from their properties,” said Rob Barber, CEO for ATTOM. “But the big picture remains the same. Abandoned properties pose almost none of the blight threats they brought a decade ago when far more homeowners were throwing in the towel after the Great Recession of the late 2000s..” The lack of zombie foreclosures throughout most of the country continues to stand out as one of the most significant effects of the U.S. housing market boom that has more than doubled the national median home value since 2012. The price runup resumed in the second quarter of this year after temporarily stalling in the second half of 2022, pushing the median single-family home price up another 10 percent nationwide and raising values in almost all major housing markets around the country. That resumed an upward path of home equity and home-selling profits, giving delinquent homeowners ever more incentive and options to stay out of foreclosure. “With a few exceptions – most notably New York City and Miami – lower-end markets still have the highest portions of zombie homes. That reflects larger portions of households with limited financial resources to avoid foreclosure,” Barber said. “Those areas are likely at higher risk for issues related to zombie foreclosure if the overall housing market turns back downward.” Zombie foreclosures tick upward again but still posing few problems A total of 8,782 residential properties facing possible foreclosure have been vacated by their owners nationwide in the third quarter of 2023, up from 8,752 in the second quarter of 2023 and from 7,707 in the third quarter of 2022. The number of zombie properties has grown quarterly in 19 states and annually in 28. While most neighborhoods around the U.S. have few or no zombie foreclosures, the biggest increases from the second quarter of 2023 to the third quarter of 2023 in states with at least 50 zombie properties are in Missouri (zombie properties up 51 percent, from 35 to 53), Maryland (up 22 percent, from 188 to 229), Oklahoma (up 15 percent, from 173 to 199), Connecticut (up 13 percent, from 77 to 87) and Pennsylvania (up 11 percent, from 401 to 446). The largest decreases among states with at least 50 zombie foreclosures are in Texas (zombie properties down 33 percent, from 168 to 112), Michigan (down 12 percent, from 59 to 52), Georgia (down 11 percent, from 95 to 85), Kentucky (down 9 percent, from 58 to 53) and Nevada (down 8 percent, from 108 to 99). Overall vacancy rates unchanged The vacancy rate for all residential properties in the U.S. has remained virtually the same for the fifth quarter in a row. It now stands at 1.26 percent (one in 79 properties), almost matching the 1.27 percent rate in the second quarter of 2023 and 1.28 percent in the third quarter of last year (one in 78). States with the largest vacancy rates for all residential properties are Oklahoma (2.26 percent, or one in 44, during the third quarter of this year), Kansas (2.13 percent, or one in 47), Alabama (2.03 percent, or one in 49), Indiana (2.02 percent, or one in 49) and West Virginia (2 percent, or one in 50). Those with the smallest overall vacancy rates are New Jersey (0.33 percent, or one in 308, in the third quarter of this year), New Hampshire (0.33 percent, or one in 301), Vermont (0.39 percent, or one in 259), Idaho (0.43 percent, or one in 230) and North Dakota (0.64 percent, or one in 155). Other high-level findings from the third quarter of 2023: Media Contact: Christine Stricker 949.748.8428 christine.stricker@attomdata.com

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Insights on sector performance now being delivered monthly for investors and owners The student housing sector continues to outperform as the Fall 2023 school year approaches, according to the August National Student Housing Report from Yardi® Matrix. Reports on national student housing performance, with insight on preleasing and rental rates, are now being delivered on a monthly basis. As of July, 90.1 percent of beds at Yardi 200 universities were preleased for the upcoming fall term, a 4.6 percent increase from the prior month and about even with last year. Preleasing was near a record high for July, and year-over-year rent growth throughout the leasing season has been ahead of last year. The sector is equipped to handle economic challenges, with solid occupancy and rent growth for the 2023-2024 school year and counter-cyclical demand. “Preleasing has slowed recently from rapid growth at the beginning of the leasing season. Month-over-month rent growth has also decelerated,” states the report. Despite the drop, fall occupancy is projected to match last year at around 96 percent, while rent growth remains impressive at 7.1 percent year-over-year. Strong fundamentals continue to fuel development, and Yardi Matrix projects approximately 40,000 new beds will be delivered in Fall 2023 at Yardi 200 universities, compared to 27,000 delivered last fall. Solid preleasing and rent growth suggests that much of the supply has already been absorbed. The student housing data set includes over 2,000 universities and colleges nationwide, including the top 200 investment grade universities across all major collegiate conferences. Known as the “Yardi 200,” it includes all Power 5 conferences as well as Carnegie R1 and R2 universities. Gain more insight in the latest Student Housing Report. Future reports will include a rotating special topic such as enrollment trends, transaction volume or development activity. Yardi Matrix covers multifamily, student housing, industrial, office, retail, vacant land and self storage property types. Email matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more. About Yardi Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

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Median Home Values Increase After Period of Decline in Majority of Opportunity Zones Targeted for Economic Redevelopment Around U.S. ATTOM, a leading curator of land, property, and real estate data, released its second-quarter 2023 report analyzing qualified low-income Opportunity Zones targeted by Congress for economic redevelopment in the Tax Cuts and Jobs Act of 2017. In this report, ATTOM looked at 3,909 zones around the United States with sufficient data to analyze, meaning they had at least five home sales in the second quarter of 2023. The report found that median single-family home and condo prices increased from the first quarter of 2023 to the second quarter of 2023 in 61 percent of Opportunity Zones around the country, and rose at least 5 percent in about half. The increases reversed a brief fallback in values during the prior two quarters in a majority of zones, which sit in and around low-income neighborhoods where the federal government offers tax breaks to spur economic revival. The renewed price growth continued a long-term pattern of trends in Opportunity Zones largely matching those in other neighborhoods around the U.S. Values in those areas also dipped from late 2022 into early 2023 before recovering in the second quarter. Changes in home values inside Opportunity Zones have been tracking closely with national patterns for at least the last three years – mostly rising in a sign of economic strength inside some of the country’s most distressed communities. By two key measures, Opportunity Zone markets even showed signs of rebounding slightly better than other neighborhoods around the country during the second quarter of this year. Median prices inside those zones rose more often at a faster pace than the nationwide gain both quarterly and annually. “Another quarter and another sign of housing market strength. That was the story yet again in Opportunity Zones around the U.S. during the Spring buying season of 2023,” said Rob Barber, CEO for ATTOM. “It doesn’t seem to matter whether the national market is booming or cooling off. Prices are rising or falling at about the same pace inside Opportunity Zones as they are elsewhere around the U.S. – and even doing a little better in some ways. For sure, prices remain low in Opportunity Zones. But once again, home value trends present a positive note for investors considering using federal tax breaks offered to redevelop neighborhoods in need of revival.” Opportunity Zones are defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet various criteria for redevelopment in all 50 states, the District of Columbia and U.S. territories. Census tracts, as defined by the U.S. Census Bureau, cover areas that have 1,200 to 8,000 residents, with an average of about 4,000 people. As they have for many years, or even decades, typical home values in Opportunity Zones continued to fall well below those in most other neighborhoods around the nation in the second quarter of 2023. Median second-quarter prices were less the U.S. median of $350,000 in 80 percent of Opportunity Zones analyzed. That was about the same portion as in earlier periods over the past year. In addition, median prices remained less than $200,000 in 49 percent of the zones during the second quarter of 2023. Considerable price volatility also continued in Opportunity Zones, with median values either dropping or increasing by at least 5 percent in two-thirds of those locations from the first quarter of 2023 to the second quarter of 2023. That likely reflected the small number of sales in many zones. Still, second-quarter trends showed that the earlier downturn in home values nationwide failed to cause a long-term slump in Opportunity Zones, despite their economic distress. That suggests that a decade of home-price runups across the U.S. continues to leave a significant cluster of potential buyers with limited resources no choice but to take a chance and purchase homes in the lowest-priced communities. The apparently healthy demand in the second quarter continued even as home-mortgage rates climbed back up toward 7 percent for 30-year loans this Spring, cutting into what buyers could afford. “Opportunity Zones appear to still be enjoying the trickle-down effect of value spikes in mid-level markets that have likely priced marginal buyers out,” Barber added. “With an ongoing tight supply of homes for sale pushing the trends even more throughout the country, there are no major signs that Opportunity Zones price patterns will fall out of step with the national scenario in the near future.” High-level findings from the report: Media Contact:Christine Stricker949.748.8428christine.stricker@attomdata.com SOURCE ATTOM