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

Thursday, 28 September 2017

Arbor Commercial Seeks to Build Muscle in Crowdfunding World

An affiliate of Arbor Commercial Mortgage is raising equity for a San Antonio apartment, the fifth deal for its nascent crowdfunding business, ArborCrowd. It's looking to differentiate itself from the crowd by providing institutional-quality opportunities to accredited investors who previously couldn't partake in such deals.

Commercial Real Estate Direct Staff Report

An affiliate of Arbor Commercial Mortgage is raising equity for a San Antonio apartment, the fifth deal for its nascent crowdfunding business.

The Uniondale, N.Y., real estate company manages Arbor Realty Trust Inc., a REIT that invests in mortgage assets, and AMAC, which owns apartment properties in Florida, Maryland, New York, the Carolinas and Texas. And last year, it launched ArborCrowd, through which it so far has raised $13.2 million of equity from its crowd investors for four properties with a combined capitalization of $141.1 million.

It recently unveiled its latest offering: $3.2 million of equity in Quarry Station, a 306-unit apartment property in San Antonio's Alamo Heights area that has a total capitalization of $40.8 million, including a $32.8 million mortgage that Arbor Commercial provided, and $5.1 million of sponsor equity.

ArborCrowd is unlike typical real estate crowdfunding platforms in that all its offerings so far have involved passive equity interests in apartment properties. Other platforms typically offer their investors - the crowd - opportunities to buy into preferred equity or some debt instrument, typically a second mortgage. Such investments provide cash flow from the start, making them an easier sell.

In addition, most other platforms operate under the best-efforts model, where a deal - the purchase or financing of a property - isn't closed until capital is raised. And that often can take weeks, particularly because many platforms are raising capital in chunks as small as $5,000.

ArborCrowd, which markets...





weekly-call-to-action

“The Weekly”

“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

  • Breaking mortgage, CMBS, and REIT news

  • Quarterly league tables with rankings of B-piece buyers, book runners, and lenders

  • Industry moves and changes in “The Insider“

Data Digest

 

CMBS DELINQUENCY VOLUME

dqdataFP1

 

CMBS SPECIAL SERVICING VOLUME

sschartfp

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

 

cppichart FP

 

 

CMBS 2.0 Spreads

AAAspreads

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
warehouse-backstage