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

Thursday, 06 June 2019

Citymark Capital Monetizes Half of First Fund, Eyes Follow-Up

Citymark Capital, which has been providing equity capital for value-add apartment deals since 2015, has monetized roughly half the investments in its initial fund and is said to be gearing up to raise a follow-up. The buzz is that it would seek to raise $150 million of equity, which it could use to make perhaps a dozen investments in workforce-housing properties.

Commercial Real Estate Direct Staff Report

Citymark Capital, which has been providing equity capital for value-add apartment deals since 2015, has monetized roughly half the investments in its initial fund and is said to be gearing up to raise a follow-up.

The Cleveland company was formed and is led by Daniel Walsh, who before the Great Financial Crisis was national head of KeyBank's real estate capital markets operation. In that role, he ran the bank's agency lending and CMBS business and also provided equity capital to apartment operators for their investments. He left Key in 2010 and joined Huntington National Bank where he was president of the northeast Ohio region.

Walsh formed Citymark in 2015 to continue the business he had developed while at Key. Banks, as a result of rules promulgated in the wake of the GFC, were no longer able to play the same roles as in the past.

The company had raised $80 million of equity, largely from institutional investors and high net-worth individuals and family offices for its first investment vehicle, Citymark Capital U.S. Apartment Fund I LP. That was leveraged into six investments. It recently completed the sale of three of those, generating $138.8 million of proceeds, and expects to sell the remaining three in the coming months. Two are on the sales market and the third should be soon.

It sold the 274-unit West Town Court apartments to Goodman Real Estate Inc., and it sold the...





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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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  • 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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