Mission Capital Advisors director Gregg Applefield discusses that Orange County has witnessed a significant decrease in vacancy rates, as well as a rise in rental rates, and it has a much more diverse tenant base this cycle.
It's a golden age of refi, and not only because interest rates are still low. Mission Capital Advisors director Gregg Applefield tells us that Orange County has witnessed a significant decrease in vacancy rates, as well as a rise in rental rates, and it has a much more diverse tenant base this cycle. "Both investors and lenders continue to view the market as one of the strongest areas in the country, now and for the foreseeable future," he explains. Shown: Gregg, here with wife Tami at the recent Covenant House Spring Gala at Union Station. With limited new office development, fundamentals should continue to improve, Gregg adds. Recently, MCA arranged a $309M refi for 23 assets owned by S.F.-based Seligman Group, including nine business parks in Orange County that received $163M of financing. The long-term loans (most have 10-year terms) are at a blended average interest rate of about 4%, with each loan interest-only for the full term. Gregg is organizing a Sleep Out fundraiser for Covenant House for Oct. 8.
Mission Capital has arranged the sale of a $199.8m loan portfolio on behalf of First BanCorp, the holding company of FirstBank of Puerto Rico. The portfolio, which was sold for $87.6m, represents an expansion of the firm’s business in the commonwealth.
Mission Capital has arranged the sale of a $199.8m loan portfolio on behalf of First BanCorp, the holding company of FirstBank of Puerto Rico. The portfolio, which was sold for $87.6m, represents an expansion of the firm’s business in the commonwealth. “Rough headlines are what creates opportunity. From 2008 to 2013 we traded $20bn to $30bn in commercial debt, and those were some pretty tough times…Opportunistic investors wait for times like these because that’s when you can buy assets cheap,” said Stephen Emery, managing director at Mission Capital. The portfolio, which has a book value of $150.1m, primarily features REO and non-performing commercial loans on retail, office and condo assets, as well as business lending. A number of parties showed interest and put out bids for the portfolio, Emery told REFI. Mission Capital was unable to reveal the US-based buyer. “Puerto Rico right now definitely has its trouble but when you back up from this specific period and look from a tourism standpoint, [the island is] actually gaining a lot of traction on Mexico, where a lot of tourism is taken from beach [destinations],” said Emery, pointing to the benefit of not needing a passport to travel there and its use of the US dollar. The hedge fund crowd is also showing growing interest in the Puerto Rican market because of advantageous tax laws, he added. Even after closing, Mission Capital has been receiving calls from market players interested in the deal. The sale marks the firm’s third all-cash portfolio transactions of both commercial and residential loans in Puerto Rico, totaling over $800m of unpaid principal or appraised value. “We have gotten to know a lot of the key parties [in the market] and understand both the markets and submarkets – what trades and what doesn’t,” said Emery, adding that Mission Capital is certainly interested in continuing to work in the space. “It is still a fairly opaque market in its early stages. There is still a lot of work to be done to clean up balance sheets, which is true from both the bank and FDIC perspective.”
Mission Capital Advisors’ Debt & Equity Finance Group arranged a $50 million financing facility for Columbia Pacific Advisors’ real estate lending strategy.
Ray, Hirt, Draganiuk and DeAngelis of Mission Capital arrange
$50 million
Seattle, WA Mission Capital Advisors' Debt & Equity Finance Group arranged a $50 million financing facility for
Columbia Pacific Advisors' real estate lending strategy. The Mission Capital team of Jordan Ray, Ari Hirt, Alex Draganiuk and Axel DeAngelis represented Columbia Pacific Advisors, LLC in securing the facility from an offshore bank. Columbia Pacific's real estate lending strategy is a USfocused, highyield bridge lending platform. The strategy is comprised of a portfolio of real estate loans with a variety of collateral including senior living, multifamily, retail, office, residential and mixeduse. Columbia Pacific sourced the new capital to fund the increasing demand from high quality real estate owners seeking shortterm financing. "We explored a variety of options for the Sponsor, including revolving warehouse facilities, repurchase facilities, and corporate facilities," said Draganiuk. "In the end, we were able to structure a financing facility with characteristics similar to a revolver." "Columbia Pacific Advisors has decades of experience in valuing real estate assets," said Brad Shain, portfolio manager of the strategy. "Our investment process relies on this experience to rapidly deploy bridge financing to a broad cross section of the real estate sector. We are excited to work with the Mission team to increase our capacity to generate returns for our limited partners."
Story ran in the New York City section on 06/23/2015
The Seligman Group has tapped Citigroup, Walker & Dunlop and Deutsche Bank to provide $309m in financing on a portfolio of 23 properties in Los Angeles, San Francisco and Orange County. Mission Capital’s New York office arranged the financing.
The Seligman Group has tapped Citigroup, Walker
& Dunlop and Deutsche Bank to provide $309m in financing on a portfolio of
23 properties in Los Angeles, San Francisco and Orange County. Mission Capital’s New York office arrange the financing.
The lenders split the loans into three pools based on location, said Jordan Ray, managing director at Mission Capital. Walker & Dunlop provided Freddie Mac financing for the Los Angeles properties while Citigroup originated the loan for all of the properties located in San Francisco. Meanwhile, Deutsche Bank funded the properties in Orange County. The portfolio included 12 commercial properties—including retail, industrial, flex and office—in Orange Country and San Francisco, as well as 11 multifamily properties totaling 817 units in Los Angeles.
Mission Capital worked on the deal from its offices in New York and California. “We proved we were the hungriest [for the deal], and it was very important for the sponsor to work with an advisor who executes both on the West coast and in New York, close to the capital,” said Ray. “The fact that we had the local office helped win and place the business, and it was a nice hand in hand effort between both [of our New York and Newport Beach offices].”
Despite offers that had higher leverage, Seligman opted for full-term, interest-only debt to keep debt-service coverage ratio down, explained Ray. The refinanced portfolio has blended average interest rate of roughly 4% and is mostly comprised of 10-year loans.
With this transaction, Mission Capital has completed more than $500m of originations on the West Coast this year. The firm secured $130m in financing for Los Angeles hospitality properties, $60m in construction financing for a downtown Los Angeles hotel, a $70m takeout loan on an asset in Koreatown, and a $50m repurchase facility for a Seattle-based bridge lender.
“Mission is in growth mode,” said Ray. “The West Coast is a really important market for us and we feel that we are already doing as much business as or more business than anybody who is there. We have a great office in Newport, and we [plan to] open up a San Francisco and Los Angeles office as well.”
Managing Director Ari Hirt, Director Gregg Applefield, Associate Director Steven Buchwald, Associate Jamie Matheny and Analyst Eugene Shevaldin from Mission Capital also worked to close the deal.
San Francisco-based real estate investors Seligman Group refinanced a portfolio consisting of most of their assets throughout California with $309 million from a syndicate of major lenders. Mission Capital worked on the deal.
BY GUELDA VOIEN (/AUTHOR/GUELDA-VOIEN/) JUNE 11, 2015, 1:49 P.M.
From Syndicate to Re
San Francisco-based real estate investors Seligman Group refinanced a portfolio consisting of most of their assets—throughout California—with $309 million from a syndicate of major lenders, a representative for broker Mission Capital Advisors confirmed to Commercial Observer Finance.
Deutsche Bank provided $125 million and Citigroup $66 million. An additional $80 million came from a Freddie Mac loan originated by Walker & Dunlop with the remaining $38 million coming from a debt fund MCA could not identify, the representative said.
The majority of the loans have 10-year terms and blended interest rates of about 4 percent, according to MCA. They are all interest-only for the whole loan period. The 23 properties backing the loans are located in San Francisco, Los Angeles and Orange County, Calif. The 12 Orange County and San Francisco assets are all commercial, but include retail, industrial and office buildings. The Los Angeles buildings are 11 multifamily properties that hold 817 units. Mission Capital’s Jordan Ray, Ari Hirt, Gregg Applefield, Steven Buchwald, Jamie Matheny and
Eugene Shevaldin all worked on the deal.
“The Seligman Group was looking to refinance its wide range of California holdings,” said Mr. Ray in prepared remarks. “Our mandate was to field both fixed and floating rate options from a variety of types of capital providers. Despite the inherent challenge of working with nearly two dozen individual assets, we efficiently arranged for the long-term refinancing of the entire portfolio at unprecedented levels.” While Seligman got a hefty chunk of cash out of the assets, they actually left some money on the table in the end, according to Mr. Hirt. “We actually secured interest from lenders willing to provide even higher leverage,” he said, “but our client ultimately decided that it was in their best interest to leave money on the table and take advantage of the opportunity for full-term interest-only debt.”
KEYWORDS: Citigroup (/tag/citigroup/), Mission Capital Advisors (/tag/mission-capital-advisors/), Deutsche Bank (/tag/deutsche-bank/), Walker & Dunlop (/tag/walker- dunlop/)
The Debt & Equity Finance Group has secured 23 separate loans totaling $309 million for the refinancing of a diverse portfolio of real estate assets owned by The Seligman Group, a San Francisco-based family office.
Media Contact: Ryan Smith Beckerman
201-465-8023 rsmith@beckermanpr.com
FOR IMMEDIATE RELEASE
Mission Capital Arranges over $300 Million of Financing from 23 Loans for
Diverse West Coast Real Estate Portfolio
Firm Approaches $500 Million of California Year-to-Date Financing
NEWPORT BEACH, Calif. (June 10, 2015) — Mission Capital Advisors today announced that its Debt
& Equity Finance Group has secured 23 separate loans — totaling $309 million — for the refinancing of a diverse portfolio of real estate assets owned by The Seligman Group, a San Francisco-based family office. The 23 refinanced assets comprise the majority of The Seligman Group’s California holdings, and total more than 1.9 million square feet and 800 apartments. Mission Capital’s New York and Newport Beach offices worked jointly on the complex assignment, with a team comprised of Managing Director Jordan Ray, Managing Director Ari Hirt, Director Gregg Applefield, Associate Director Steven Buchwald, Associate Jamie Matheny and Analyst Eugene Shevaldin. “The Seligman Group was looking to refinance its wide range of California holdings. Our mandate was to field both fixed and floating rate options from a variety of types of capital providers,” said Ray. “Despite the inherent challenge of working with nearly two dozen individual assets, we efficiently arranged for the long-term refinancing of the entire portfolio at unprecedented levels – interest only for the term. It was great execution and the results were gratifying. Our client was able to replace the existing loans and take advantage of favorable market conditions as they take out additional cash.” The portfolio includes 12 commercial properties in Orange County and San Francisco. The commercial properties include retail, industrial, flex and office holdings. The 11 Los Angeles multifamily properties comprise 817 units. “We’re seeing incredible demand for investment in every property type from office, industrial, and flex to retail and multifamily,” said Hirt. “Working with a very diverse set of assets, we ultimately secured long- term financing at a blended average interest rate of approximately four percent on the entire Seligman portfolio. The majority of the loans have ten-year terms, and each is interest-only for the full term. We actually secured interest from lenders willing to provide even higher leverage, but our client ultimately decided that it was in their best interest to leave money on the table and take advantage of the opportunity for full-term interest-only debt.” In recent months, Mission Capital has also secured a total of $130 million in financing for Los Angeles hospitality properties, arranging $60 million of construction financing for a downtown LA hotel and a $70 million take-out loan on a Koreatown Asset. The firm also recently secured a $50-million repurchase facility for Seattle-based real estate bridge lender. “It’s very satisfying to close this portfolio deal, solidifying our presence in the California market shortly after expanding to the region,” said Applefield. “Having already secured nearly $500 million of financing in California this year – across every single property type – we have successfully demonstrated our expertise in terms of both lender relationships and client services.” Mission Capital Advisors is a leading debt and equity brokerage, securing construction financing, acquisition financing and refinancing on all property types, including self-storage, hospitality, industrial, retail, multifamily and office. The capital markets solutions firm operates numerous regional offices and is extremely active across the country.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
Mission Capital arranged a $19m loan for the acquisition and renovation of a mixed-use building in Miami Beach on behalf of a joint venture between Springhouse Partners and Forte Capital Management. Ladder Capital funded the loan.
Real Estate Finance & Investment
Mission Capital sees upside in
Miami Beach mixed-use
JUNE8,20 1 5
Mission Capital Advisors arranged a SJ 9m loan for the acquisition and renovation of a mlxed use building in Miami Beach on behalf of a joint 'oenture between Springhouse Partners and f-orte Capital Management Ladder Capital funded the loan. "[Ladder Capital) is a great lender for this type of deal because although they have [a focus on) CMBS, they are entre– preneurial and will [take The Variety Bull&ng was originally con structed in 1933 as the Ma)i!ower Hotel_ Its top Ooors were converted into studio apartments in the 1990s, but the sponsor plans on restoring the building to its original intent to meet the growing lodging demand in the area. The bulldlng's retail component is being prepared for re–leasing. "Years ago. that part of the beach was ,·ery much a lower–rent, resi dential area. [Now), with a little risk] on their bal ance sheet to make a little more yield.• said Jordan Ray. managing director in Mission Capitals debt and equity finance group.
The 70– unlt. mlxed–use
Variety Building is located at 1700 Alton Road. adja cent to the heart of l.1iaml Beach& historic Art Deoo
'THIS PART OF [MIAMI BEACH] IS CHANGING VERY QUICKLY… THERE IS OBVIOUSLY A LOT OF VALUE [THE SPONSOR) WILL HAVE TO HARVEST"
JORDAN RAY
the fancy hotels on the beach, [there is a need forI lower price boutique hospitality products that are a little further west There is a lot of demand for a subset of three–star (hospitality product] since that heavy four and flve-star demand is (already) met," explalned District on Lincoln Road. Rents on this corridor can exceed S300 per square foot. ·This part of [MJamj Beach) is changing '-ery qu.ickly…there is obviously a lot of value (the sponsor) will harvest from retail," sald Ray, pointing to recent widen ing of Alton Road and the Introduction of a new Whole Foods in the area that is helping to push up demand and rents. Ray. Springhouse Partners and Forte Capital Management have yet to decide on management or a brand for the new hotel component. The renovation is slated for completion some time In 20!6, and theclient opted for a mid-single digit pricing for a non–recourse renovation loan. Reno'l!tlons will inclu&ng upgrades to the build ings fa ade.
Fashion designer Elie Tahari is seeking up to $75 million to finance his pending acquisition of a 94,000-square foot mixed use building in Manhattan’s Greewich Village. Mission Capital is brokering the loan, pitching it to debt funds, banks and speciality finance firms.
Fashion designer Elie Tahari is seeking up to $75 million to finance his pending acquisition of a 94,000-‐square-‐foot mixed use building in Manhattan’s Greenwich Village.
Tahari hopes to line up floating-‐rate debt with a three-‐year term and two one-‐year extension options for 88 University Place, an L-‐shaped building that also has an entrance on East 12th Street.
Mission Capital is brokering the loan for Tahari, pitching it to debt funds, banks and specialty finance firms. The process is expected to move swiftly, with the sale of the property likely to close by mid-‐July.
Tahari has agreed to acquire the 11-‐story building from New York-‐based Himmel & Meringoff Properties for about $100 million, pegging the loan-‐to-‐cost ratio at 75%. Tahari, an Israeli-‐born designer whose clothing lines appear in boutiques worldwide, is also an established real estate investor in New York.
The building, constructed in 1906, has 10 floors of office space and ground-‐floor retail space. The building is currently 85% occupied, mostly by medical offices, but leases for eight of the office floors expire in 2016. Tahari intends to reposition the building, plowing about $4 million into upgrades and improvements, including new mechanical systems and elevators.
Forward leases have already been signed by two companies to take nearly all of the space that will become available. WeWork eventually will occupy 67,000 sf, some beginning next year and the remainder in 2020. The lease is part of a larger push into Manhattan for the provider of shared office space, which in February committed to 235,000 sf at 85 Broad Street in Lower Manhattan.
Kabbalah Centre, a nonprofit that provides spiritual education, will occupy 17,000 sf, also starting next year. About two-‐thirds of the building’s 6,500 sf of ground floor retail space is vacant, with the remaining portion, facing East 12th Street, leased to Chipotle.
Mission Capital Advisors has arranged $19 million in acquisition and renovation financing for the Variety Building, a 70-unit mixed-use building located at 1700 Alton Road in Miami Beach. – See more at: http://rebusinessonline.com/mission-capital-arranges-19m-acquisition-renovation-loan-for-mixed-use-asset-in-miami-beach/#sthash.d3ulKacp.dpuf
The Debt & Equity Finance Group arranged $19 million in acquisition and renovation financing for the Variety Building, a 70-unit, mixed-use building located at 1700 Alton Road in Miami Beach, Florida.
Media Contact: Shlomo Morgulis smorgulis@beckermanpr.com
201-465-8007
Mission Capital Advisors Arranges $19 Million in Acquisition and Renovation Financing for
1700 Alton Road in South Beach
Springhouse Partners and Forte Capital Management Acquire Prime Asset in the Heart of South Beach
MIAMI BEACH, Fla. (June 1, 2015) — Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Debt & Equity Finance Group arranged $19 million in acquisition and renovation financing for the Variety Building, a 70-unit, mixed-use building located at
1700 Alton Road in Miami Beach, Florida. The property will undergo light renovations as the retail is prepared for re-leasing and the residential component is converted to hospitality space. The Mission Capital team of Jason Cohen, Jordan Ray, Ari Hirt and Axel DeAngelis represented the sponsor, a joint venture of Springhouse Partners and Forte Capital Management, in securing the loan from Ladder Capital. “1700 Alton is right in the middle of a very exciting part of South Beach. Springhouse and Forte Capital will be adding a lot of value to the retail and creating a very cool hospitality product,” said Ray. 1700 Alton’s current retail tenants include scooter dealer Vespa Miami. The building is located one block north of Lincoln Road, the prime retail corridor in Miami’s historic Art Deco District. The property stands to benefit from the spillover effect from retailers priced out of Lincoln Road, where rents can exceed $300 per square foot. Originally constructed in 1933 as the Mayflower Hotel, the property was converted to studio apartments in the 1990s. The sponsor intends to reposition the building into a boutique hospitality concept. The planned renovations will be used to upgrade and modernize various aspects of the building, including the façade, lobby, and common areas. Mission has been very active in arranging debt and equity financing in South Florida. Recent deals include the $16.75-million first-mortgage financing of Doral Court, a 200,000-square-foot office building in Doral; the $21-million refinancing of Freehand Miami, a 256-bed boutique hostel in Miami Beach; and the $106-million construction financing of Echo Aventura, a 190-unit luxury condominium high-rise in Aventura.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading national, diversified real estate capital markets solutions firm with offices in New York City, Florida, Texas, California and Mobile, Al. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of loan sale and financing transactions, as well as in excess of $14 billion of Fannie Mae and Freddie Mac transactions, positioning the firm strongly to provide unmatched loan portfolio valuation services for both commercial and residential assets. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels of integrity and trust. For more information, visit www.www.missioncap.com.
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