Month: December 2015

Banks have been reluctant to part with well yielding performing loans despite strong premium pricing in recent years. The common themes warranting sales include overall CRE concentration issues (>300% of total risk based capital), portfolio risk management sales (tenant exposure, lease roll, etc.), divesting of non-strategic geographies and/or high risk asset classes (e.g. hospitality) or exiting non-strategic borrower relationships (e.g. offered loan is bank’s sole asset with a borrower). M&A activity, monetizing legacy assets on disparate servicing systems or taking profits on low basis reperforming loans have also emerged as top themes for banks seeking to sell performing debt. Despite weak supply, 2016 performing sales attracted a broad bidder market from community banks to large super-regionals (who were not always able to out price smaller rivals). Transactions settling in late Q4 suffered a relatively minor post-election setback, as well as negative price adjustments following the Fed’s rate hike announcement in December. Despite the adjustment, transactions continued to execute by year end with premium pricing. 2017 has seen increased sales resulting from mergers. Additionally, the volume of conduit “kick-out” loans has increased, as smaller CMBS shops struggle to compete under “risk retention” paradigm and others close their doors.

PERFORMING COMMERCIAL & MULTIFAMILY LOAN SALES


PORTFOLIO CHALLENGE


CRE Concentration Regulatory
Guidance
Regulator guidance to banks cautions that CRE
concentration in bank portfolios should not exceed
300% of risk based capital, and the outstanding balance
of bank CRE portfolio should not grow more than 50%
during the prior 36 months

MISSION CAPITAL SOLUTION



Over-Exposure to Specific Borrower Strategic dispositions when lending limits to specific borrowers impede ability to originate new loans to the borrower
Mission Capital advises clients
nationwide on the sale of performing
Exit Non-Strategic Borrower
Relationships
Offered loan is bank’s sole relationship with a borrower
(i.e. no depository or other banking services)
loan portfolios, delivering custom asset marketing solutions via our world-class talent, proprietary

Prudent Risk Management Exiting geographies, change in credit appetite, exiting deals with tenant roll risk, divesting asset classes, etc.
technology, transactional experience, and deep relationships.

M&A Activity

Legacy or Reperforming Portfolios
Strategic disposition of assets outside desired footprint / outside lending parameters
Monetize legacy assets on disparate systems or
low basis reperforming TDRs

TRANSACTION TRADE THEME SUMMARY

Small Regional West Coast Bank


CRE Loans, Performing

Large National Commercial Bank Lender


CRE Loans, Performing

GSE Lender


Healthcare & Multifamily/Student Housing, Performing

Private Equity

CRE Loans, Performing

Premium to Par, Gain on Book Value

Premium to Par, Gain on Book Value

Gain on Book Value, Portfolio Risk Management

Gain on Book Value, Harvest Gains

$23mm total UPB, recently originated, traded at 100.85%. High demand from secondary market.
$11.6mm total UPB, traded at 100.11%. Bids ranged from 90% of par to 100.11%. High demand from secondary market, market accustomed to asset type.
$194mm total UPB, traded at 91%. Government Seller. High demand from secondary market.

$12.3mm total UPB, traded for 89%. Portfolio made up of non- seller originated loans previously acquired on the secondary market. High demand from secondary market.

KEY FACTORS

FOR UPSIDE PRICING

KEY FACTORS

FOR UPSIDE PRICING

At or above market coupon

KEY FACTORS

FOR UPSIDE PRICING

Strong cash flow and payment history

KEY FACTORS

FOR UPSIDE PRICING

LTV < 70%; DSCR > 1.3x; Maturity < 5 yrs

KEY FACTORS

FOR UPSIDE PRICING

Average asset size > $2.5mm

KEY FACTORS

FOR UPSIDE PRICING

Variable rate or limited remaining fixed rate term

KEY FACTORS

FOR UPSIDE PRICING

Reasonable floor on variable rate portion of term

KEY FACTORS

FOR UPSIDE PRICING

Prepayment protection

KEY FACTORS

FOR UPSIDE PRICING

Full recourse / Personal guarantees

KEY FACTORS

FOR UPSIDE PRICING

Credit tenant

KEY FACTORS

FOR UPSIDE PRICING

No lease hangout on single tenant loans

KEY FACTORS

FOR UPSIDE PRICING

“Full doc” / in compliance with financial reporting requirements

KEY FACTORS

FOR UPSIDE PRICING

Recent appraisals

KEY FACTORS

FOR UPSIDE PRICING

TYPES OF

INVESTORS


Banks

Mortgage REITs

Insurance Companies

Structured Finance Buyers

CONTACT

NEW YORK

Tel: 212-925-6692

FLORIDA

Tel: 561-622-7022

TEXAS

Tel: 512-327-0101

CALIFORNIA

Tel: 949-706-3001

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Source: Globe Street

Nearly $51 million in bridge financing, in addition to a $15 million mezzanine loan, has been secured for the acquisition and pre-development of 42-50 24th Street in the Queens neighborhood. Mission Capital arranged the financing.

Financing Secured for LIC Property

December 24, 2015

By Rayna Katz

NEW YORK CITY—Validating Long Island City high buzz factor, nearly $51 million in bridge financing—in addition to a $15 million mezzanine loan—has been secured for the acquisition and pre-development of 42-50 24th St. in the Queens neighborhood.

Mission Capital Advisors’ debt & equity finance group arranged the financing. The team of Jason Cohen, Alex Draganiuk, Steven Buchwald and David Behmoaras arranged senior and mezzanine financing with Robyn

Sorid and Jason Behfarin, founding principals of G4 Capital andDan

Cooperman, chief originations officer of Terra Capital Partners on behalf

of Dynamic-Hakimand Property Markets Group. The financing is 79% of the project’s total capitalization.

This is the fifth transaction that G4 has entered into with PMG, and the second with Dynamic-Hakim. This is the first financing that Terra Capital has done with either borrower. Cole Schotz' real estate practice group attorneys Leo

Leyva and Jordan Fisch, special counsel Rab Nalavala and associates Elizabeth Navatto, Bella Zaslavsky and Joseph Cacciapaglia advised G4 on the deal.

Dynamic-Hakim and Property Markets Group, which recently acquired Queens Plaza Park and Queens Plaza South in the same neighborhood, plan to invest additional capital to entitle the lot and prepare it for the development of a new residential and commercial building. The sponsor also is developing Queens Plaza South, a 44-story, 290,000-square-foot building just a block north of 42-50
24th St.
“Given the sponsor’s track record of success in the neighborhood, along with its business acumen and ability to execute on their business plans effectively and efficiently, we were able to secure favorable financing that will allow Dynamic- Hakim and PMG to execute on its vision,” says Cohen, managing director of Mission Capital.
He represented the partnership on an exclusive basis on the construction and mezzanine financing arranged for QPS, and arranged the original acquisition loan for the parcels of land that comprise QPP.
“Sometimes you really need smart lenders, and this one had a short time frame in which to close, and a lot of moving parts, with both a senior and a mezz lender, plus critical tax and zoning legal issues, which made it particularly challenging and fun,” adds Draganiuk.
Close to the Queens Plaza subway station with access to the 7, N, and Q subway lines, 42-50 24th St., is said to be minutes from Grand Central Station via Metro North.

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With the Long Island City section of Queens continuing to emerge as one of the most sought-after locales in New York City, Mission Capital Advisors’ Debt & Equity Finance Group has arranged $50.6 million in bridge financing, in addition to a $15.0 mezzanine loan, for the acquisition and pre-development of a property at 42-50 24th Street.

Media Contact: Amanda Ferraro Beckerman

aferraro@beckermanpr.com
201-649-1186

FOR IMMEDIATE RELEASE

Mission Capital Advisors Arranges $65.6M in Financing for Acquisition and Pre-Development of Long Island City Mixed-Use Property

NEW YORK (Dec. 22, 2015) — With the Long Island City section of Queens continuing to emerge as one of the most sought-after locales in New York City, Mission Capital Advisors’ Debt & Equity Finance Group has arranged $50.6 million in bridge financing, in addition to a $15.0 mezzanine loan, for the acquisition and pre-development of a property at 42-50 24th Street.
The Mission Capital team of Jason Cohen, Alex Draganiuk, Steven Buchwald and David Behmoaras arranged senior and mezzanine financing with Robyn Sorid and Jason Behfarin, Founding Principals of G4
Capital and Dan Cooperman, Chief Originations Officer of Terra Capital Partners, respectively, on behalf of Dynamic-Hakim and Property Markets Group, which they represented on an exclusive basis. The financing represents 79 percent project’s total capitalization.
This is the fifth transaction that G4 has entered into with PMG, and the second with Dynamic- Hakim. This is the first financing that Terra Capital has done with either borrower.
Dynamic-Hakim and Property Markets Group, which recently acquired Queens Plaza Park and Queens Plaza South in the same neighborhood, plans to invest additional capital to entitle the lot and prepare it for the development of a new residential and commercial building. The sponsor is also currently developing Queens Plaza South, a 44-story, 290,000-square-foot building just a block north of 42-
50 24th Street.
“Given the sponsor’s track record of success in the neighborhood, along with their business acumen and ability to execute on their business plans effectively and efficiently, we were able to secure extremely favorable financing that will allow Dynamic-Hakim and PMG to execute on its vision,” said Jason Cohen, Managing Director of Mission Capital.
Jason Cohen represented the partnership on an exclusive basis on the construction and mezzanine financing arranged for QPS, and arranged the original acquisition loan for the parcels of land that comprise QPP. He has also financed other projects for PMG, such as Echo Brickell and Echo Aventura in Miami, and 10 Sullivan Street and 111 Leroy in Manhattan.
“Sometimes you really need smart lenders, and this one had a short time frame in which to close, and a lot of moving parts, with both a senior and a mezz lender, plus critical tax and zoning legal issues, which made it particularly challenging and fun,” said Alex Draganiuk.
Located a few blocks from the Queens Plaza subway station with access to the 7, N, and Q subway
lines, 42-50 24th Street is just minutes to Grand Central Station in Midtown Manhattan via Metro North.
A leading real estate capital markets solutions firm, Mission Capital Advisors is extremely active in securing debt and equity financing for properties across the country. The firm also secured the financing for Queens Plaza South in November 2014.

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 $65 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.

About G4 Capital Partners

G4 Capital Partners is a real estate bridge lending group created to capitalize on perceived inefficiencies in the real estate finance market. G4’s principal focus is on senior secured transitional loans in the Northeast and Los Angeles, CA markets. However, G4 employs an opportunistic approach and considers ancillary lending and equity opportunities in real estate consistent with the group’s risk adjusted return philosophy. Investment decisions of G4 are guided by asset value and an assessment of whether the liquidation value of the collateral supports a full return of principal.

About Terra Capital Partners

Terra Capital Partners is a New York-based lender that specializes in mezzanine and bridge loans in high
quality commercial real estate. Terra lends on multifamily, hotel, office, retail and industrial properties throughout the United States. Since 2002, it has financed over 350 properties nationwide comprising more than 48 million square feet of space.

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Source: Sacramento Business Journal

Mission Capital Advisors has arranged a $13 million floating rate loan for a former Campbell Soup site.

Industrial park on former Campbell Soup site

gets big loan

December 10, 2015 By Ben Van Der Meer

Two years after they bought it, the owners of the former Campbell Soup plant in south Sacramento have secured a new loan to continue leasing, building improvements and new development on the site.

Newport Beach-based Mission Capital Advisors has arranged a $13 million floating
rate loan for the owners of the industrial site at 6200 Franklin Blvd., now known as Capital Commerce Center.

Gregg Applefield, a director at Mission Capital, said the loan gives owners Hackman Capital Partners, LLC and Rabin Worldwide, Inc. more ability to make deals. Since the groups bought the building in 2013 after Campbell Soup shut down, they’ve been able to lease 60 percent of the available space, Applefield said.

“This improves their overall capitalization to make them an ideal destination,” he
said, noting the original buy was all cash.

Hackman and Rabin, represented by CBRE Sacramento, continue to see strong
interest in leasing space. On a 127-acre site, Capital Commerce also has land to build new space for both industrial and retail tenants, Applefield said. With the latter, the corner of Franklin and 47th Avenue is a possibility, he added.

Having a loan backed with strong leasing improves the overall financial base, he
said. The ownership partners could’ve gotten a loan before now, Applefield said, but at less attractive terms before leasing improved.
Applefield said his firm was motivated to help the owners get new financing after other south Sacramento industrial properties where Mission Capital is involved benefitted from the improvements and new leases at Capital Commerce.

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Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Debt & Equity Finance Group has arranged a $13-million floating-rate loan from a private specialty finance lender, secured by Capital Commerce Center, a multi-faceted, 127-acre, primarily industrial property located at 6200 Franklin Boulevard in Sacramento, California.

Media Contact: Shlomo Morgulis Beckerman

smorgulis@beckermanpr.com
201-465-8007

FOR IMMEDIATE RELEASE

Mission Capital Advisors Arranges $13 Million in Bridge Financing for

1.1 Million-Square-Foot Capital Commerce Center in Sacramento

SACRAMENTO, Calif. (Dec. 10, 2015) — Mission Capital Advisors, a leading national real estate capital markets solutions firm, today announced that its Debt & Equity Finance Group has arranged a $13-million floating-rate loan from a private specialty finance lender, secured by Capital Commerce Center, a multi-faceted, 127-acre, primarily industrial property located at

6200 Franklin Boulevard in Sacramento, California.
The Mission Capital team of Gregg Applefield, Alex Draganiuk and Lexington Henn represented affiliates of Hackman Capital Partners, LLC and Rabin Worldwide, Inc., the joint-venture that purchased the property in 2013, in securing the non-recourse financing.
The property was opened in 1947 by global food giant Campbell’s Soup, and served as a major food manufacturing plant until Campbell’s sale of the property to the sponsor in 2013. With
500,000 square feet of vacant space, as well as additional developable land, the property is
attractive to tenants looking for industrial, office or retail space.
“After acquiring the site in 2013, the sponsor has rapidly leased 60 percent of the property to major tenants” said Applefield. “Despite the property’s previous specialty use, ownership has made the necessary renovations, outfitting the facilities for modern tenants and effectively repositioning the Capital Commerce Center as a multi-tenant manufacturing and commercial park.”
“We received interest from a number of different capital providers who recognized the real estate acumen of Hackman and Rabin, and the significant potential of the property,” said Draganiuk.
The property is located near major roadways and mass transit and is proximate to commercial transportation options, including the Port of Sacramento and the Union Pacific railroad.
A leading real estate capital markets solutions firm, Mission Capital Advisors is extremely active in securing debt and equity financing for properties across the country. Recent California transactions include arranging the sale and financing of a 191,000-square-foot office and R&D
portfolio in Pleasanton, securing acquisition financing for a 144-key lifestyle hotel in Berkeley and refinancing a 23-asset portfolio of multifamily, retail, industrial, flex and office properties located in Los Angeles, San Francisco, and Orange County.

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 $65 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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