Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Wednesday, 10 October 2018

Ex-Rialto Capital Execs Form Company to Pursue Value-Add Apartments in Western U.S.

Tower 16 Capital Partners, a company formed last year by former Rialto Capital Management executives Mike Farley and Tyler Pruett, is looking to expand its portfolio of value-add apartment properties in the Western United States. It's looking to buy properties in Las Vegas, California's Inland Empire, Salt Lake City and Phoenix.

Commercial Real Estate Direct Staff Report

Tower 16 Capital Partners, a company formed last year by former Rialto Capital Management executives Mike Farley and Tyler Pruett, is looking to expand its portfolio of value-add apartment properties in the Western United States.

Earlier this year, the Carlsbad, Calif., firm formed a venture with Henley, a United Kingdom private-equity firm, to pursue workforce apartments in Las Vegas. The venture so far has acquired three properties with 1,280 units. It has another 320-unit complex under contract and expects the deal to close by the end of the year.

Last week, it paid $49.75 million, or $92,129/unit, for the Cornerstone Crossing Apartments at 666 West Washington Ave. The 540-unit property was constructed in 1984 and has studio, one-, two- and three-bedroom units. Tower 16 plans on investing $6.5 million on renovations and upgrades.

The venture bought its other two properties this year, paying $24 million, or $105,263/unit, for the 228-unit Winsome West, at 5050 Duneville St., and $50 million, or $97,656/unit, for the 512-unit Foothill Village, at 6255 West Tropicana Ave. It has re-branded those complexes as the Altura on Duneville and Altura on Tropicana,...





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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 - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

  • Challenging Retail Environment Weights on REITs
    Mixed economic news is weighing on retail markets, pushing REIT performance down in 2015. This week, the National Retail Federation announced that back-to-school spending is expected to be down 9.3% in 2015. This news came on the heels of a report from the Commerce Department stating that retail sales declined 0.3%...
     
  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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