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...


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Data Digest







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




cppichart FP



CMBS 2.0 Spreads


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





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