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Tuesday, 17 May 2016

Spirit Bascom Crowdfunded Some Equity for Chicago Apartment Purchase

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Commercial Real Estate Direct Staff Report

Spirit Bascom Ventures, which purchased 5200 Sheridan Road, a 223-unit apartment property in Chicago's Edgewater neighborhood late last year, turned to the crowdfunding marketplace to raise $1.3 million of common equity.

It was a first for the venture, and it would do it again in a heartbeat.

The venture bought the property, an eight-story building that was constructed in the 1920s, for $21.6 million from Kopley Group. Prior to closing its purchase, the venture had lined up equity commitments from its usual network of friends, family and other high net-worth investors. But it ran into a glitch when one investor balked.

The Spirit Bascom venture previously had been intrigued by the crowdfunding phenomenon and looked at the situation opportunistically. It closed the purchase, but decided to syndicate some of the equity, post-closing, through the crowdfunding space. It interviewed a number of platforms and picked Realty Mogul, in large part because of its experience raising common equity and its ability to line up investors for transitional assets.

Most other platforms prefer to syndicate preferred equity or mezzanine...





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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Institutional Investment (INS), Property Acquisitions (ACQ)
  • Private: Yes
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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