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

Monday, 28 October 2013

Real Estate Syndicators Adopt Crowdfunding

A number of entrepreneurial real estate professionals have taken to the Web to syndicate real estate investments. They're currently limited to raising capital from accredited investors, meaning those with net worths of at least $1 million. But the SEC last week proposed rules governing so-called crowdfunding that, if implemented, would open up the world of real estate syndications to even non-accredited investors.

Commercial Real Estate Direct Staff Report

A number of entrepreneurial real estate professionals have taken to the Web to syndicate real estate investments.

They're currently limited to raising capital from accredited investors, meaning those with net worths of at least $1 million. But the SEC last week proposed rules governing so-called crowdfunding that, if implemented, would open up the world of real estate syndications to even non-accredited investors.

Facilitating crowdfunding - raising capital in small increments from the public via the Internet - was called for by the Jumpstart Our Business Startups, or Jobs Act, which President Obama signed into law last year. The idea was to lower the costs involved in raising entrepreneurial capital. The SEC is now seeking comments on its proposed rules.

Real estate syndicators only recently started jumping into the crowdfunding wagon. Among them are Fundrise, which was founded by Benjamin and Daniel Miller, whose family's Western Development Corp. is among the better known developers in the Washington, D.C., area, and Realty Mogul, which was co-founded earlier this year by Jilliene...





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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

 

 

 

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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