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

Monday, 07 January 2019

Tiny Buyer of Net-Leased Real Estate Aims for Growth Through Development Deals

Generation Income Properties Inc., a tiny REIT that was brought to market just more than two years ago, has developed a plan that could allow it to grow substantially over time. The Tampa, Fla., company is signing up developers to exclusive agreements through which it provides development capital in exchange for property purchase options.

Commercial Real Estate Direct Staff Report

Generation Income Properties Inc., a tiny REIT that was brought to market just more than two years ago, has developed a plan that would allow it to grow substantially over time.

The Tampa, Fla., company, which is led by David Sobelman, founder of 3 Properties, which provides a variety of brokerage and advisory services to the net-leased sector, had used Regulation A+, part of the Jumpstart Our Business Startups, or JOBS, Act that was signed into law in 2012, to take his company public. The rule allows for a streamlined registration process and facilitates investment offerings of $50 million and less to be marketed to non-accredited investors.

The company had aimed to raise up to $20 million through a mini-IPO, or initial public offering, which was conducted through a best-efforts offering that Sobelman had spearheaded. He couldn't speak of future public capital-raising efforts, but noted that his company has had solid interest from investors, both institutional and high net-worth.

His company, meanwhile, has struck exclusive deals with developers of net-leased properties where it provides capital in exchange for a purchase option. The thinking is that the agreements could result in its portfolio growing by $400...





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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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    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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