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

Thursday, 05 April 2018

S2 Capital Plans on Investing $500Mln in Apartment Properties in 2018

S2 Capital LLC plans to invest about $500 million this year in properties in Florida and Texas that were built in the 1970s or 1980s. That would be a 25 percent increase in acquisition volume from last year. The Addison, Texas, investment manager pursues older apartment properties that it could upgrade in order to generate greater rents.

Commercial Real Estate Direct Staff Report

S2 Capital LLC plans to invest about $500 million this year in apartment properties in Florida and Texas that were built in the 1970s or 1980s and need renovations.

That would be a 25 percent increase in acquisition volume from last year, when the company made $400 million of investments in 12 properties with 5,700 units.

The Addison, Texas, investment manager, which raises capital through a network of high net-worth individuals, also ventures on deals with institutional investors. It also raises about 70 percent of the value of its properties with mortgages from banks or the housing-finance agencies.

The company was founded six years ago by managing partner Scott Everett, who previously had provided brokerage and development services through his Royal Ventures LLC. Skip Bird, a former principal with Lone Star Funds who had been...





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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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  • 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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