Randybacon - Liberty Realty Capital Group

What Do Investors Need to Know About Crowdfunding?

November 20, 2015 by Randybaconin Commercial Mortgage LendingLeave a Comment

Crowdfunding platforms have exploded recently, with experts expecting $2.57B raised this year. And while we have discussed what investors should look for in a platform, we’ve yet to tackle why you should be looking at crowdfunding in the first place. To get a grip on crowdfunding’s advantages, potential concerns and future, Bisnow sat down with partner RealtyMogul.com’s CTO and co-founder, Justin Hughes (pictured). The Appeal Justin says the advantages of crowdfunding extend beyond accessibility and reach (although he admits they are significant benefits for investors). A solid crowdfunding platform provides investors additional investment opportunities they wouldn’t normally get because investors can “leverage the connections of the platform, as well as benefit from the enhanced purchasing power when investors pool their capital.”

Read more at: https://www.bisnow.com/national/news/technology/is-crowdfunding-an-investors-best-friend-52400?utm_source=CopyShare&utm_medium=Browser

Mall Owners Find Silver Lining in Retailer Busts

November 18, 2015 by Randybaconin Real EstateLeave a Comment

A spate of retailer bankruptcies this year has left owners of malls and shopping centers scrambling to fill empty stores. But some landlords smell opportunity.

The vast majority of these type of properties are occupied and spare space is in short supply in many parts of the country, according to experts and landlord data. That is boosting the confidence of landlords who believe they can find new tenants and charge them higher rents.

RadioShack was the largest retailer by assets with publicly traded stocks or bonds to file for bankruptcy since 2010. A former Radio Shack store in the Bronx, New York

Photo: Michael Nagle/Bloomberg News

After grocery chain A&P, filed for bankruptcy in July, for example, Brixmor Property Group Inc. said it bought back three leases in a bankruptcy auction under which the grocer, formally known as Great Atlantic & Pacific Tea Co., was paying an average of $6.59 a square foot. The firm, which owns shopping centers in 38 states, will be able to charge new tenants $20 to $30 a square foot, says Michael Carroll, chief executive.

See entire article in the Wall Street Journal.

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After Leading CMBS Out of Recession, Retail Loans Slower To Refinance

November 13, 2015 by Randybaconin Real EstateLeave a Comment

For all of their success in leading a resurgence of CMBS financing following the Great Recession, retail properties face a tougher rode ahead in the short term.

Approximately $50 billion of retail-backed CMBS loans are scheduled to mature through 2016. Collateral backed by retail properties accounts for the largest portion of that, its also accounts for the largest proportion of loans defaulting at their 2015 maturities, according to Fitch Ratings.

For loans with original maturities in 2015, retail comprises the majority of the currently delinquent loans ($555.2 million) followed by office ($469 million). Other property types have far lower levels of deliquent loans, including hotel ($162.9 million), mixed use ($161.9 million), multifamily ($44.6 million), industrial ($12.4 million), and self-storage ($6.5 million).

Read the entire article at www.Costar.com.

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Multifamily Lending Starting to Level Off

November 10, 2015 by Randybaconin Commercial Mortgage LendingLeave a Comment

Lenders will keep pouring money into apartment properties over the next two years, originating about the same volume of loans in 2016 and 2017—with slight increases—that they are likely to close in 2015, according to the latest Commercial/Multifamily Real Estate Finance Forecast from the Mortgage Bankers Association (MBA), an industry trade group.

“The forecast anticipates continued strength and growth,” says Jamie Woodwell, vice president for the research and economics group at MBA.

That’s still going to be a big change from the last few years, when business of lending on multifamily real estate didn’t just grow a little, but instead grew incredibly quickly. So far in 2015, lenders have increased the volume of apartment loans they made by well over 10 percent compared to the year before. In 2016, experts expect more moderate growth, with less frenetic competition to make deals.

Outsized growth

Lenders will likely originate a total of $224 billion in permanent loans to multifamily properties in 2015, according to MBA. That’s a 15 percent increase from the $195 billion they lent in 2014, which in turn marked a 13 percent increase from $173 billion in multifamily originations in 2013. That year marked an 18 percent increase in originations from 2012.

Lending volume can’t grow like that forever. The growth this year already caught most experts by surprise.

Read entire post in National Real Estate Investor here.

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Private Equity Funds Are Sitting on $244B for Commercial Real Estate

November 6, 2015 by Randybaconin Real EstateLeave a Comment

Private equity firms are loving them some commercial real estate as funds ended Q3 with $244B of dry powder ready for investments in the industry, Preqin data says. Additionally, private institutional investors are still raising money to bankroll investments in core product in core market—i.e. pricier assets—with 52% of funds focused on North America. “The easy money has clearly been made and pricing is very aggressive,” Vornado CEO Steven Roth says. Vornado holds $555M in property investments and is now focusing on building up its cash reserves from $1B to $2B by the end of the year. Among other funds to keep an eye on, Blackstone Real Estate Partners VIII closed last quarter after raising $15.8B, making it the largest commercial real estate PE fund ever. [CoStar]

Read more at: https://www.bisnow.com/national/news/commercial-real-estate/private-equity-funds-end-q3-with-244b-for-cre-52017?utm_source=CopyShare&utm_medium=Browser

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Sustainability: The New Norm in Real Estate Development and Investing

November 4, 2015 by Randybaconin Commercial Mortgage Lending, Green financingLeave a Comment

Time was when the idea of sustainability in real estate development and investing was a pretty soft notion. Sure, everyone liked the “idea” of reducing carbon emissions, protecting the environment and exploring alternative energy sources, but few were willing to spend money on it. Today, things are vastly different, and it’s the bottom line that’s talking.

A number of factors have driven real estate sustainability into the mainstream, but the greatest influence, whether in the initial design phase or via retrofit, are tenant expectations.

According to McGraw-Hill Construction’s report, “World Green Building Trends—Business Benefits Driving New and Retrofit Market Opportunities in Over 60 Countries,” client demand (35 percent) and market demand (33 percent) were the top two reasons the global green building market grew to $260 billion in 2013, including an estimated 20 percent of all new U.S. commercial real estate projects.

For a commercial building to be able to proclaim sustainability and eco-friendliness is one of its best marketing tools. LEED certification has become a de facto standard for many U.S. cities and class-A buildings. The U.S. Green Building Council-issued LEED certification is awarded to new and renovated office buildings, interiors and operations based on how they’ve adopted best practices in energy, lighting, air quality, water usage and more.

Similarly, the sustainability metrics detailed by GRESB—Global Real Estate Sustainability Benchmark—are increasingly proclaimed by properties.

Government offices for the most part must have LEED certification or other demonstrations of green compliance, according to the U.S. General Services Administration. In other commercial spaces, many tenants simply won’t lease class-A space that’s not LEED-certified.

View entire article here in National Real Estate Investor.

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