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

Tuesday, 13 August 2019

Blank-Check Company Strikes Deal to Merge With High-Yield Bridge Lender

Trinity Merger Corp., a blank-check company launched last year by Lee S. Neibart, has agreed to merge with Broadmark Realty, effectively forming a publicly traded mortgage REIT and investment manager that will fund short-term mortgages against residential and commercial developments.

Commercial Real Estate Direct Staff Report

Trinity Merger Corp., a blank-check company launched last year by Lee S. Neibart, has agreed to merge with Broadmark Realty, effectively forming a publicly traded mortgage REIT and investment manager that will fund short-term mortgages against commercial and residential developments.

Trinity is buying Broadmark, of Seattle, which was formed in 2010 by Joseph L. Schocken, who serves as its president, for $1.2 billion. It will pay $98 million in cash and the remaining $1.1 billion in newly issued Broadmark common shares.

Trinity was formed solely to find an acquisition target, in the real estate world that would benefit from having access to the public equity markets. It had raised $345 million of gross proceeds from its public offering and had planned to fund any acquisition by issuing shares. The cash it's paying will go to Broadmark's current owners.

Separately, Farallon Capital Management, which was founded by Tom Steyer, who is running for President of the United States, has agreed to invest $75 million in Broadmark through a private placement. Steyer separated himself from Farallon in 2012.

Proceeds of Farallon's investment will be used to cover expenses related to the acquisition and to fund Broadmark's business operations. It also will be used to fund...





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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

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