Source: Globe Street

Mission Capital’s David Tobin comments on the use of big data in the industry.

Big Data Alone Is Not Enough

AUGUST 19, 2016 | BY CARRIE ROSSENFELD

IRVINE, CA—Big data is not, by itself, inherently useful; information is only as valuable as its fusion with industry experience, Ten-X’s Sheridan Hitchens tells GlobeSt.com in this EXCLUSIVE roundtable about big data and the real estate industry.


IRVINE, CA—Big data is not, by itself, inherently useful; information is only as valuable as its fusion with industry experience, Ten-X’s VP of data products Sheridan Hitchens tells GlobeSt.com. We spoke
exclusively with Hitchens, along with Morgan Stewart, an attorney with Manly, Stewart &

Finaldi; Elliot Vermes, CEO of ResiModel; Joe Derhake, CEO of Partner Engineering & Science; Norm Miller, Hahn Chair of real estate finance at

the Burnham-Moores Center for

Real Estate, within the School of Business at the University of San Diego; and David Tobin,

founder of Mission Capital Advisors, about their overall assessment of big data in the real estate industry. Stay tuned for a more in-depth feature on the subject in the July/August issue of Real Estate Forum.

GlobeSt.com: What should our readers know about big data and real estate?

Hitchens: Big data is not, by itself, inherently useful. Information is only as valuable as its fusion

with industry experience. It’s not the data itself that provides value, but the application of that
data. In order to find actionable statistics, you need to analyze and curate specific insights from oftentimes oversized data sets.
At Ten-X, as an online marketplace, we’ve been able to utilize data to provide global-marketing reach, allowing for more tailored and targeted marketing on specific assets. The ability to appeal to a subset of buyers and sellers that, according to the data, may be more interested in a
specific asset helps us to create a more efficient marketplace for both buyers and sellers. In conjunction with a local investment broker, we ensure that potential buyers who are around the corner and around the world are covered.
Due to our position at point-of-sale, as well as our partnership with Google and leading industry data providers, we will be able to provide customers with real-time, actionable data. The value
of any data changes with time—a lease comp from three years ago probably isn’t very helpful
today. So if we can provide relevant, verified data at the exact moment someone is looking to transact, we will remove risk and add liquidity to the market.
Stewart: The attack on Essex serves as a warning to all real estate companies that collect and store information on behalf of renters, tenants, vendors, consultants and buyers. Multifamily property owners, management firms and related interests, however, are at particular risk due to the high-level of personal information, including banking, social security, driver’s license numbers and employment, collected on consumers during the rental process.
Property managers should also be aware that they fall under both FTC rules. Since property
managers provide a financial service for landlords they fall into the category of financial institution under the Safeguard Rule, and because they use credit reports to screen tenants, they are also subject to the Disposal Rule.

Vermes: One thing that goes hand-in-hand with big data is data visualization—charts and other graphic tools that make it much easier to grasp where things stand and when trends are in motion. Whether you’re analyzing rent revenues at your multifamily property or energy

expenses at a commercial building, the human mind is much more effective at understanding
information in a visual format rather than solely comprising a list of numbers.
In order to be able to analyze and visualize data, it first has to be in a usable format. While you may be bombarded by massive amounts of data, it is often useless without an enormous amount of time-consuming manual conversion from a yellow pad (or other non-digital
equivalents) into a standardized format. As compared with most sophisticated trillion-dollar industries, real estate has a surprisingly high number of “yellow pads.” In the multifamily space, people frequently receive rent-roll data in PDF or other difficult-to-analyze and database
formats. As a result, the data is often not analyzed as comprehensively as it could be, and those
who do analyze it face the arduous task of first getting the data in their own Excel templates prior to being able to analyze it. One of ResiModel’s most popular features is our data-capturing capability, which extracts the data out of the property management reports that you receive in PDF and Excel formats and converts it to a format that can instantly be analyzed and mined. Digitizing and standardizing information is the prerequisite to big data.

Derhake: It’s important to realize that big data creates a competitive advantage not only in terms of CRE investment and lending, but also for better-managed and -operated—and therefore more valuable–assets. Collecting data from smart building systems, tenant smart- phone usage, tenant management systems, etc., to gain a better understanding of how buildings are used allows property owners and operators to improve facility

management and capital planning. For example, building energy efficiency can be improved by adjusting building systems to more efficiently meet user demand. Better-operated buildings yield better returns, and in in this way big data has the potential to increase significantly the marketability and value of commercial real estate assets.

Miller: Technological innovation and the use of new data sources is not as easy as monitoring Google searches for your office building or other social media, although those can help manage branding. It is an experimental and labor-intensive process, which is why it will take some time

to fully implement and utilize all the new data exploding from connecting everything. The result, however, will be safer, more-efficient and better-managed real estate; faster and more efficient valuation; and speedier due diligence. Don’t expect this to happen tomorrow, yet it is very exciting to see what is possible, and that is what we are learning now.

Tobin: Extensive property-level information is readily available online today, particularly in the real estate sector. While there are many benefits to this “open-source” information, some find it disconcerting that their mortgage documents and personal information relating to their home are available online. This proliferation of data has a distinctly positive impact on real estate, bringing more lenders and capital and lower interest rates to the space, because open information

mitigates risk for lenders. I am personally a big advocate of technology and information and truly believe that the benefits of big data outweigh many, but not all, concerns.

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Source: Globe Street

Mission Capital’s David Tobin discusses the use of cybersecurity in the industry.

How Should The Industry Approach Cybersecurity?

AUGUST 16, 2016 | BY CARRIE ROSSENFELD

IRVINE, CA—The best defense against a security breach is prevention, which starts with eliminating your business as a target by controlling access to sensitive information, Manly, Stewart & Finaldi’s Morgan Stewart tells GlobeSt.com in this EXCLUSIVE story.


IRVINE, CA—Security-breach prevention starts with eliminating your business as a target by controlling access to sensitive information, Manly, Stewart & Finaldi partner Morgan Stewart tells GlobeSt.com. We spoke with Stewart, along with Elliot Vermes, CEO of ResiModel; Norm Miller, Hahn Chair of real estate finance at the Burnham-Moores Center for Real Estate
within the School of Business at the University of San Diego; David Tobin, founder
of Mission Capital Advisors; Charles Clinton, CEO of EquityMultiple; Michelle Schaap, a member of Chiesa Shahinian and Giantomasi’s media and technology, construction and
corporate and security practices; and Jorge Rey, director of information security and compliance for CPA firm Kaufman Rossin, about how the industry should cybersecurity. Stay tuned for a more in-depth treatment of cybersecurity and big data in real estate in the July/August issue of Real Estate Forum.

GlobeSt.com: How should the industry approach cybersecurity when more and more of our industry is embracing technology and therefore open to risk?

Stewart: The best defense against a security breach is prevention, which starts with eliminating your business as a target by controlling access to sensitive information. Strategies might include holding sensitive materials in a separate, non-networked database; limiting employee access to sensitive information; disallowing the transmittal of sensitive information over electronic communications; and creating an employee manual that details the use, possession and protection of sensitive information.

There are many ways to control access to electronic information, eliminate risk and prevent a security breach. Computer hacker Kevin Mitnick, in his book Ghost in the Wires, offers these tips.

Make the right IT investments to protect information, including firewall, virus protection and monitoring software.

Update apps regularly.

Secure laptops, mobile phones, tablets and other mobile technology with encryption software.

Enable remote wiping, which allows your provider to erase information on mobile devices when lost or stolen.

Establish strong passwords.

Backup regularly to an external drive.

Be smart when surfing the Web and downloading information: every “warning box” that appears should be taken seriously, and understand that every new piece of software comes with its own set of security vulnerabilities.

Educate employees. They need to understand the importance of your company’s data and consequences of a breach, measures they can take to protect it and what they may be doing that is dangerous.

“One of the most difficult things to do is protect end users against themselves,” Watchinski
concluded, “but ultimately, prevention is the best approach to handling your data security.”

Hitchens: Companies need to understand that cybersecurity is a core component of the implementation of new technology. If you’re employing technologies as a central component of your business, then you are, for all intents and purposes, a technology company. As a result, businesses should specifically seek out and hire technology professionals that focus on keeping information safe and secure.

Vermes: One thing that is important to remember is that it is not only online applications that

are at risk. Unless your computers are literally off the grid and completely disconnected from the Internet, your files are always vulnerable to hackers. It is extremely easy (and common) for hackers to send malware to PCs. The reality is that your data is much safer stored in a responsible SaaS application that is serious about security than it is when stored locally.
Miller: There are several firms in Israel that have proven to be great at countering cyber- attacks, and there are a few in the U. such as McAfee. I suspect we will need to have numerous layers of safeguards and security to run the systems of the future. Many new firms will likely emerge to provide cyber safeguards and users will need to perform due diligence to determine which one to use.
Tobin: Going forward, I think the standard for access to smartphones, laptops and desktop systems should be biometric, and we will likely see more fingerprint and retina logins. Similarly, transaction security will be enhanced with technologies such as blockchain. Systems are only as safe as the weakest link, and passwords are a weak link for a variety of reasons: written on paper, stored in an unsecure password manager or simply too simple and easily figured out.
You cannot, however, steal someone’s fingerprint or eyeball! Substantial resources have been dedicated to developing these technologies, and we’ll likely see more implementation of these innovative approaches to cybersecurity in the near future.

Clinton: Adopting something new always involve some level of risk; the question is whether the

pros outweigh the cons. I don’t think anyone is questioning the huge benefits that technology
will bring to the industry. The necessity for cybersecurity will vary from business to business, but for those portions of the industry that hold valuable proprietary data, the first step is recognizing the value of that data and then taking the necessary steps to protect it. Luckily, there’s already an entire industry dedicated to cybersecurity, so the infrastructure is already there. One very small example is web hosting—our platform is hosted by Heroku withinAmazon’s secure data
centers. Amazon has a level of security in their data centers that very few companies could hope to replicate, so leveraging their infrastructure is an enormous advantage.
Rey: As the commercial real estate industry increases its reliance on technology, companies should start incorporating cyber security risk within their risk-management framework. For example, companies should consider the potential impact of sensitive information being stolen, whether it is tenant information or other sensitive information such as investment strategies, business plans, current or future investors lists and engineering drawings. The industry should start look to best practices from industries such as financial services and healthcare that have long been addressing cyber security. Best practices may include periodic risk assessment s, vulnerability assessments, employee training and information-security programs tailored to the risks facing each company and the information they want to protect.

Schaap: It goes without saying that any responsible company should (and, by law, is required to in many cases) implement appropriate security procedures —including both cyber- and physical security measures. Companies should ensure that they not only have firewalls and antivirus software, which offer protection against certain types of threats, but also that they have their sensitive data encrypted both at rest and in transit. Companies should audit their existing systems with qualified, outside vendors—not the personnel or vendors that designed the subject systems—to understand what sensitive data the company has, where it resides—physically and electronically—and how it is stored in relation to other company systems. Such outside vendors

should also ensure that there is not already an undetected “presence” in the company’s systems. Once tested (and redesigned, if appropriate), systems should be tested regularly (by “white hat” hackers) to test vulnerabilities. Where vulnerabilities are detected, measures must then be taken to redress them (consider the Target losses due to Target’s failure to respond to its own notices that its systems are vulnerable).
Security efforts should also include people: Personnel must be trained to
recognize phishing,spearfishing, and other improper efforts to gain unauthorized access to a company’s systems. Employees should not be permitted to use unsecure devices (e.g. cellphones, PDAs and/or tablets) to transmit information of a sensitive nature. Proper personnel training on these critical security issues will thwart many bad actors’ efforts to access company records and systems. Vendors that service a company must also be carefully vetted to ensure that, to the extent such vendors have access to company systems and confidential information,
they, too, take appropriate security measures. If companies use “data rooms” and data- sharing cloud providers to facilitate the exchange of documents in due diligence, they must carefully review the terms and conditions of the sites and systems used to make sure that security is assured and that the company will remain the owner of its data at all times. Companies should also ensure that information is fully backed up, stored and quickly retrievable. If a company is hacked, or the subject of a ransomware attack, it must be able to restore business records and resume “business as usual” quickly. Absent such measures,
companies may find themselves compelled to pay ransom to regain access to their valued data.
Additionally, companies should invest in cyber insurance. But purchasing insurance without understanding the coverage and exclusions may leave the company unprotected—or without the level of protection it thought it had. Business-interruption coverage that is not part of a cyber-risk policy may not cover the losses incurred in a cyber-attack.
Companies must have an action plan for the “when” (and not the “if”). If a cyber-attack occurs, the date the attack is discovered is not the time to develop a plan of response. A comprehensive response plan should clearly identify all the necessary players, escalation procedures and outside parties—including law enforcement, insurance carriers, legal professionals and technology/forensic experts—so that the company can react immediately and responsibly. Having proper procedures, protections and action plans in place in advance can protect the company from a world of hurt. The last thing a company executive wants to explain is why the proceeds from a multi-million-dollar transaction have just been wired to an untraceable account
in Russia

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Source: Commercial Observer

Sabal Financial Group and Oak Tree Capital Management landed $65M in nonrecourse bridge financing from Citizens Bank on a 1.4 million square foot, 11 property office portfolio that spans six states. Mission Capital negotiated the transaction.

COMMERCIAL OBSERVER FINANCE

The Jnsldrr's Weekly Guide to the Commerciallfortpge Industry

Citizens Bank Lends

$65:1 to Sabal and Oak Tree forational Office Portfolio

Saba! Financial Group and Oak Tree

Capitai.Manqi!IDIInt lamlu

nonrecourse bridge finnncing from Citizens

Bank ou a 1.4million­

in strong markets,• Patrick Burns, the man· aging director for institutional real estate at Citizens, said through a spokeswoman. "Citizens is continuing to grow itscommercial rcalestatefinanccbusincssinkcymarkctswith experienced partners."

Proceeds of the financing will be used to­ ward capital improvements and leaseups on the properties,which arc in varying states of upkeep,said Draganiuk After purchasing the assets,Saba!came in with an ad:ivcasset man­

agement team and already did "a lot of heavy

Jo:XCLUb11E

quarofoot,ll-propertyof­

rn

lifting"in regards to renovations.

The loan from Citizens will provide Saba!

states, Commercial Observer Finance can first report.

A grou p of ucl.ll and l!quily bruhrs from

Mission Capitol negotitlted tho trnnsnction.which closed on J11. ly 20,ou behalf of the bor­ rowers. The team included Chad Coluccio, Alex Draganiuk anil Rugene Shevaldin.

The brokerage's relationshlp, it

OakTree a 'tually
lastseveral years the twofirms havejointlypur­
chased poolsofloans through Mission Capital. "Wedobusiness with [Saba! and Oak '!'reelon a lot of different levels, but I believe this wasour firstlargefinancing transaction where we rep­
resented them as a client,Coluccio told COF
over the phone.

Saba! and Oak Tree purchased a number of the assets that serve ucollateral for the Citizens loan through Mission Capital as well, some of which had defaulted loans or were realestate owned. The portfol:oinclud­ ed Beau Terre Office Park in Bentonville, Ark., Plnebrook Business Center I & II in Norristown, Penn., Financial Plaza in

Knoxville, Tenn.and Stamford Executive

Center in Stamford, Conn.

"This is a great deal with an excellent client and the portfolio features top office properties

and Oak Tree with the flexibility of being able to sell assets from the portfolio and pay down the loan rather than being tied down, said Coluccio,which was important to the borrow­ ers because some of the properties are closer to stabilization than others.

The properties have an overall blended

occupancy of 64.6percent,Draganiuk said.He noted that there was "a lot of cash flow going into this deal"and that the borrower was pro­ vided with a variety of financing options from lov.-er leverage bank deals, like the mortgage from Citizens, to debt up to SlOO million with a mezzanine piece.
AnothP.r positive nfthe ile:ll Wll that "[thP. lender] was willing to give the borrower a loan with relatively no minimum interest,• Draganiuk added "Some debt funds need at least12 to15to18monthsof minimum interest because they wantto makeacertain return,or guarantee they'll make a certain return, when underwritingassetsindifferentmarkets.They were really greatit's not always easy for peo­ ple tomanage .so many mnvingp:n1.:.

A representative from Saba!was not avail­ able for comment, and a representative for OakTreedidnotrespond toarequestforcom­ mentDanielleBaibi

Download icon PDF File 260.35 KB Download
Source: Globe Street

Mission Capital’s David Tobin comments on the use of big data in the industry.

The Future Of Big Data In Real Estate

AUGUST 12, 2016 | BY CARRIE ROSSENFELD

IRVINE, CA—As big data becomes more readily available in the marketplace, it will also become increasingly important for businesses to identify quality curators of this data so that the foundation for their decision making is solid, ATTOM Data’s Daren Blomquist tells GlobeSt.com in

this EXCLUSIVE story.


Blomquist: “Big data will become increasingly important to businesses that want to make the best decisions possible.”
IRVINE, CA—As big data becomes more readily available in the marketplace, it will also become increasingly important for businesses to identify quality curators of this data so that the foundation for their decision making is solid, ATTOM Data’s VP Daren Blomquist tells GlobeSt.com. We spoke with Blomquist and Sheridan Hitchens, VP of data products for Ten- X; Elliot Vermes, CEO of ResiModel; Joe Derhake, CEO of Partner Engineering & Science; Norm Miller, Hahn Chair of real estate finance at the Burnham-Moores Center for
Real Estate, within the School of Business at the University of San Diego; David Tobin, founder of Mission Capital Advisors; and Charles Clinton, CEO of EquityMultiple, about the future of big data and real estate. Stay tuned for a more in-depth feature on big data and real estate in the July/August issue of Real Estate Forum.

GlobeSt.com: Where do you see big data heading in relationship to the real estate industry?

Blomquist: Big data will become increasingly important to businesses that want to make the best decisions possible. It also will likely become more readily available in the marketplace, but as it does it will also become increasingly important for businesses to identify quality curators of big data so that the foundation for their decision-making is solid.

Hitchens: Real estate data is becoming both more robust and more accessible. I’ve been asked about what the best source of real estate data is, and I’ll often tell people: “Google.” That’s a bit tongue-in-cheek, of course, but the fact is that anyone can locate an address on Google and view it down to the street view—that’s a data set in itself.

I also believe we’ll see a fairly rapid expansion of new data sets in addition to the firming up of this core asset information. I was speaking at MIT’s Real Estate Conference a few weeks back, and I saw a fantastic presentation by one of the professors leading the work on Internet of Things. A lot of the work revolves around sensors in buildings. They can monitor exit/entry flow and traffic in any part of the building. There are many additional tools that have been or are being developed that will help to portray the atmosphere and experience of actually being
inside a building without setting foot in it.

Vermes: There is around $60 trillion worth of real estate in the United States, but analysts only have a finite amount of time. Through their ability to crunch data much faster than the human mind, big-data tools give analysts the ability to broaden their scope. For example, in the future, we may see investors use big data to analyze properties that are not currently for sale. While current time constraints dictate that time should be spent evaluating properties that are on the market, when time is less of a concern, investors may begin to also analyze other properties, ultimately approaching the owners of properties that may offer upside value.

Another way we may see big-data tools evolve is by more directly influencing decisions. Currently, big-data solutions are largely focused on aggregating and arranging data for human
consumption. But people are more and more feeling inundated by information and do not simply
need even more data, what they’re really seeking is answers.
Derhake: The reason that we don’t track the effects of quality HVAC systems on rents is because nobody has that data. However, if you were to draw a pie chart on what tenants complain about, poor HVAC systems is likely to be a fat slice. Personally, I am being forced to relocate one of my offices for exactly that reason. What if we could tease these effects out of real estate? This type of effects would really explain some of the incongruent comps in the rental market. We should track things like HVAC quality, elevator speeds, energy efficiency, and Internet speeds and develop their statistical relationship with rents.
Of course, big data is only valuable if it can be segmented and analyzed into actionable information. So, I think that technologies and programs that enable the smart and dynamic management of data will lead the revolution of big data in the real estate industry. On a property-management level, for example, we’ve seen a huge spike in demand for
our SiteLynx program, which enables property data to be managed in a live, customizable
format.
Miller: We are still in the early stages of adoption. In traveling the world, I have seen different states of implementation of big data. For example, Schneider Electric, headquartered in Paris, France, monitors every person in its headquarters and uses real-time management systems. Japan seems to have the most-automated parking systems. At Google’s or Microsoft’s headquarters, everything is connected to the Internet, from fire extinguishers to security systems. We will see a huge gap from the most intensively managed buildings to the average buildings for some time yet, perhaps a decade or more, just as we see a huge gap from the most sustainable buildings to the average building out there. Conferences
like www.realcomm.com, produced by Jim Young, help close the gap, but only a small
percentage of professionals are trying to be leaders in terms of big-data utilization.

Tobin: The amount of data we already have access to on properties and loans is impressive. At some point in the near future, we will have “perfect” data on every single property and every loan in the United States. This trend is also taking hold in other countries and will eventually impact virtually every major city around the world, and then … everywhere.

In the United States, we take it for granted that one can go online and zoom in and see property
photos of nearly every building or lot in the country. We will ultimately reach that point in many countries across the world.
Clinton: We’re at the beginning of a wave of change that will permeate the business. Other fields are way ahead of us in effectively employing data, and the trend is that once an industry starts to become more data focused, they don’t pull back. There are nearly endless applications. From asset analysis and pricing on the investment side of the business to tracking consumer usage and traffic patterns in the retail sector, data will be a key way that smart companies compete.

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Written by Lexington Henn, Analyst:

The border of Ridgewood and Bushwick, collectively “Ridgewick,” is a vibrant neighborhood located in the northern part of Brooklyn, New York.   As prices continue to rise for retail, residential, and office properties in neighboring Williamsburg, creative types have been filing into Ridgewick bringing with them new bars, Michelin rated restaurants, hip coffee shops, live music venues, and gallery space that all continue to flourish.  Bushwick is gaining global attention, having been named the “7th Coolest Neighborhood in the World” by Vogue Magazine.  Although Ridgewick is constantly reinventing itself, an authentic bohemian heart still beats beneath its remodeled exterior.

Culture
The art scene, from galleries to festivals, is a hallmark of Ridgewick.  Reputable galleries include: The Lorimoto Art Gallery and Jim Hodge’s Art Gallery; The BogArt; Loft 594; Regina Rex; and Harbor Gallery.  Up and coming artists are finding a home in the new developments of artists’ lofts on Wyckoff and Eldert Streets creating an artistically driven environment.  The Bushwick Collective is an outdoor street art gallery that allows famous NYC graffiti artists and international painters to legally paint on buildings all over the district.  Bushwick Open Studios is a three day arts and culture festival and New York’s largest open studio event.  Broadway Stages is drawing actors of all types including George Clooney and Bill Murray, who recently filmed a movie at 1019 Irving Avenue.  The flow of artists, students, families and young professionals continues to move east along the L train, as Williamsburg prices push them out.

Food
Ridgewick is home to many restaurants and live music and entertainment venues including Billy’s, Pearl’s Social Club, The Evergreen, The Acheron, Lone Wolf, and Shea Stadium.  Microbreweries continue to pop up in the area including Bridge and Tunnel Brewery, and Queens Brewery.  Shops at the Loom is a converted textile mill that now serves as a 20-store mini-mall.  It includes a yoga studio, community darkroom and skate-board shop.  Top restaurants and cafes such as Northeast Kingdom, Roberta’s, Blanca’s (Michelin 2 star rated), Momo Sushi Shack and 108 Central Café attract patrons from all over New York City.  Ridgewick also includes Houdini Kitchen Laboratory and Rudy’s Bakery, home to the classically trained pastry chef, Cristina Nastasi, and her famous Black Forest Cake.

Creative Commercial
Rising rents in Manhattan and other parts of Brooklyn, such as Williamsburg and Greenpoint, make Ridgewick an affordable and attractive alternative with superb public transportation.  A recent report showed that 34% of Brooklyn renters are employed by tech or creative companies, compared with 25% in Manhattan.* These tenants typically require a large amount of space, high ceilings and excellent column spacing.

As of July 2013, approximately 2.6MM people live in Brooklyn, making it the third largest city in the United States.  With 43MM square feet of office space, the Brooklyn office market is already larger than the downtown Los Angeles office market, and continues to expand.  Brooklyn is currently seeing its first speculative office building since the 1920’s taking shape at 25 Kent Avenue and a growing live-work environment is attracting numerous tenants.** Properties with lower rents, access to transportation routes and proximity to a skilled labor force will draw many companies to Ridgewood and Bushwick.

TAMI Tenants Leading Creative Commercial Growth
The technology, advertising, media and information industry (TAMI) is in a growth stage and Brooklyn is an untapped market for these companies given employees live here and want to work nearby. In the first half of 2014, the TAMI sector exceeded the financial sector in terms of the number of tenants in the market and their demand for space.  According to a report from Newmark Grubb Knight Frank, Brooklyn’s office market availability rate decreased to 4.1% from 6.5% one year ago, compared to Midtown South, which at 8.8% is widely believed to be one of the lowest availability rates in the US.  The warehouse-conversion to creative retail/office prototype has been proved successful in various neighborhoods of Brooklyn.  Many companies now desire a Brooklyn address to draw in younger employees who already live there and prefer the energetic atmosphere and cutting-edge amenity selection.

The migration of young professionals from Manhattan to Brooklyn has helped spur the TAMI sector growth in the area as well.  Well-known companies such as Livestream, Kickstarter, Etsy and Vice have chosen North Brooklyn for their offices.  Vice Media, an internationally renowned new media company, recently signed an 8-year, 70,000 SF lease on the south side of Williamsburg at 285 Kent Avenue for $55/SF.  Last year WeWork signed on for 40,000 SF above the Williamsburg Whole Foods for $50/SF.  This is emblematic of Williamsburg as a whole, as office tenants are now signing leases comparable to space in Manhattan which is overflowing into East Williamsburg, Ridgewood, and Bushwick.

 

* As Per On-Site.com, a provider of electronic tenant screening and lease-processing services for landlords.
** Colliers International Q4 2014 Office Market Report.

MCA collaborates with sister crowdfunding company to raise debt and equity for four-building high street retail and student housing portfolio.

Media Contact: Shlomo Morgulis Beckerman

smorgulis@beckermanpr.com

201-465-8007

Mission Capital Arranges $13.25-Million Loan For Charleston Mixed-Use Portfolio

MCA collaborates with sister crowdfunding company to raise debt and equity for four-building

high street retail and student housing portfolio

CHARLESTON, S.C. (Aug. 10, 2016) — Mission Capital Advisors, a national real estate capital markets solutions firm, today announced that its Debt & Equity Finance team arranged $13.25 million in non- recourse financing to recapitalize a portfolio of four mixed-use buildings located on King Street in Charleston, South Carolina. EquityMultiple, Mission Capital’s sister company, raised a $500,000 of LP equity as part of the recapitalization.

The Mission Capital team of Jordan Ray, Ari Hirt, Steven Buchwald and David Behmoaras secured the loan on behalf of Friedman Capital, assisting the real estate owner in recapitalizing the portfolio. EquityMultiple raised the equity from a group of individual investors through its online real estate crowdfunding platform.

The properties comprise a total of 41,545 square feet and include 36 apartment units and six ground- floor retail shops. The portfolio is located within a block of the College of Charleston on the strongest retail corridor in the city. Prominent shops on King Street include national brands such as an Apple store and J. Crew as well as independent boutiques and upscale restaurant and cafes.

“This is a great example of Mission Capital’s unique capability to provide financing solutions across the capital stack,” said Ray. “We were able to arrange 80% LTC non-recourse financing at a very competitive interest rate, while EquityMultiple utilized the power of its online investment platform and tapped into the crowd to raise a portion of the equity.”

A significant portion of the property’s residential and commercial units are leased at well below market rates, and the new loan will help facilitate the sponsor’s business plan to increase rents to market by capitalizing on the property’s unparalleled location.

“This portfolio is in a great location, and its proximity to the College of Charleston guarantees perpetual full occupancy,” said Behmoaras. “We received multiple offers from mortgage REITs, banks and debt funds eager to invest in this attractive deal.”

The portfolio is situated within the Middle King submarket which is the strongest retail submarket in
Charleston, with market-topping rents and a vacancy rate of 1.8 percent.
“Charleston is one of the country’s top travel destinations, and millions of people visit each year to experience the culture of the city’s historic downtown,” said Charles Clinton, CEO of EquityMultiple. “The property enjoys extremely high demand from both students and retailers, owing to its excellent location on a booming retail corridor within blocks of the college. The experienced sponsors and cash flow stability, combined with the deal’s value-add potential, make this exactly the sort of compelling investment opportunity we aim to offer individual investors through the EquityMultiple platform.”
Friedman Capital is a family-owned investment firm that was founded in 2010 in Washington D.C. The firm’s principals have honed a consistent ability to identify and execute off-market opportunities and to manage complex value-add situations to completion.
Mission Capital Advisors is extremely active in arranging financing for industrial, office, hotel, multifamily, retail, and self-storage properties across the country. The firm’s recent deals include securing $37.3 million in acquisition financing for a Philadelphia retail portfolio and arranging the $64.9- million refinancing of a nationwide 11-property commercial portfolio.
EquityMultiple is an online marketplace that facilitates more accessible real estate investing for individual investors across the country. The firm was founded in 2015, and has closed on 11 debt and equity offerings in markets including New York City, San Francisco and St. Petersburg.

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 Raleigh, North Carolina. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across debt, mezzanine, and JV equity placement; commercial and residential loan sales; 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 financing and loan sale 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 EQUITYMULTIPLE

EQUITYMULTIPLE is an online marketplace that facilities more accessible, efficient and transparent real estate investing by combining innovative technology with real estate experience. The platform connects accredited and institutional investors to pre-vetted investment opportunities offered by experienced lenders and operators. EQUITYMULTIPLE leverages the experience and industry connections developed by its partner, Mission Capital, over its 14-year history. EQUITYMULTIPLE’s goal is to facilitate better,

more efficient real estate investing, while providing a powerful set of analytics, reporting and management tools. Visit www.equitymultiple.com

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Source: Commercial Observer

Sabal and Oak Tree landed $65 million in nonrecourse bridge financing from Citizens Bank on an 11-property portfolio. Mission Capital arranged the financing.

COMMERCIAL OBSERVER FINANCE

The Jnsldrr's Weekly Guide to the Commerciallfortpge Industry

Citizens Bank Lends

$65:1 to Sabal and Oak Tree forational Office Portfolio

Saba! Financial Group and Oak Tree

Capitai.Manqi!IDIInt lamlu

nonrecourse bridge finnncing from Citizens

Bank ou a 1.4million­

in strong markets,• Patrick Burns, the man· aging director for institutional real estate at Citizens, said through a spokeswoman. "Citizens is continuing to grow itscommercial rcalestatefinanccbusincssinkcymarkctswith experienced partners."

Proceeds of the financing will be used to­ ward capital improvements and leaseups on the properties,which arc in varying states of upkeep,said Draganiuk After purchasing the assets,Saba!came in with an ad:ivcasset man­

agement team and already did "a lot of heavy

Jo:XCLUb11E

quarofoot,ll-propertyof­

rn

lifting"in regards to renovations.

The loan from Citizens will provide Saba!

states, Commercial Observer Finance can first report.

A grou p of ucl.ll and l!quily bruhrs from

Mission Capitol negotitlted tho trnnsnction.which closed on J11. ly 20,ou behalf of the bor­ rowers. The team included Chad Coluccio, Alex Draganiuk anil Rugene Shevaldin.

The brokerage's relationshlp, it

OakTree a 'tually
lastseveral years the twofirms havejointlypur­
chased poolsofloans through Mission Capital. "Wedobusiness with [Saba! and Oak '!'reelon a lot of different levels, but I believe this wasour firstlargefinancing transaction where we rep­
resented them as a client,Coluccio told COF
over the phone.

Saba! and Oak Tree purchased a number of the assets that serve ucollateral for the Citizens loan through Mission Capital as well, some of which had defaulted loans or were realestate owned. The portfol:oinclud­ ed Beau Terre Office Park in Bentonville, Ark., Plnebrook Business Center I & II in Norristown, Penn., Financial Plaza in

Knoxville, Tenn.and Stamford Executive

Center in Stamford, Conn.

"This is a great deal with an excellent client and the portfolio features top office properties

and Oak Tree with the flexibility of being able to sell assets from the portfolio and pay down the loan rather than being tied down, said Coluccio,which was important to the borrow­ ers because some of the properties are closer to stabilization than others.

The properties have an overall blended

occupancy of 64.6percent,Draganiuk said.He noted that there was "a lot of cash flow going into this deal"and that the borrower was pro­ vided with a variety of financing options from lov.-er leverage bank deals, like the mortgage from Citizens, to debt up to SlOO million with a mezzanine piece.
AnothP.r positive nfthe ile:ll Wll that "[thP. lender] was willing to give the borrower a loan with relatively no minimum interest,• Draganiuk added "Some debt funds need at least12 to15to18monthsof minimum interest because they wantto makeacertain return,or guarantee they'll make a certain return, when underwritingassetsindifferentmarkets.They were really greatit's not always easy for peo­ ple tomanage .so many mnvingp:n1.:.

A representative from Saba!was not avail­ able for comment, and a representative for OakTreedidnotrespond toarequestforcom­ mentDanielleBaibi

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National brokerage secures two separate loans on behalf of Hackman Capital Partners.

Media Contact: Shlomo Morgulis Beckerman

smorgulis@beckermanpr.com

201-465-8007

FOR IMMEDIATE RELEASE

Mission Capital Arranges $19.3 Million of Financing

for Chicago Industrial Properties

National brokerage secures two separate loans on behalf of Hackman Capital Partners

CHICAGO (August 5, 2016) — Mission Capital Advisors, a national real estate capital markets solutions firm, today announced that its Debt & Equity Finance team arranged $19.35 million in non-recourse financing for eight properties located in and around Chicago. The loans include a $14.4-million bridge loan for six industrial properties, and $4.95 million in acquisition financing for a separate transaction.

The Mission Capital team of Gregg Applefield, Alex Draganiuk and Lexington Henn arranged the loans on
behalf of Hackman Capital Partners.

The six property portfolio of 906,984-square-feet of industrial space is spread out across the Chicago metropolitan area, with the properties located throughout five counties. This portfolio is 89-percent leased, with a weighted average remaining lease term of three-and-a-half years.

“These transactions represent the third and fourth times Hackman has worked with Mission Capital to raise capital for their properties,” Applefield said. “The company recognizes our ability to add significant value by effectively showcasing the positive attributes of commercial real estate, coupled with our deep relationships with both national and local lenders.”

Added Draganiuk: “With vacancy rates in steady decline, the Chicago industrial market is one of the strongest in the country. These strategically located properties have a great deal of upside, and we were able to arrange an extremely strong deal for the sponsor.”

The two additional properties, which comprise approximately 195,436 square feet in two adjacent buildings and are located in Cook County, Chicago, were acquired by Hackman in a sale-leaseback, with Cenveo Corporation.

Hackman Capital Partners is a privately-held real-estate investment and operating company that focuses on the acquisition of industrial properties, including complete facilities with industrial equipment. Hackman Capital also targets infill flex buildings, which the company redevelops for creative-office and other commercial uses.
Founded in 1986, Hackman Capital has conducted more than $2 billion in real estate transactions across
41 states—having owned, through affiliated entities, over 400 buildings totaling 35-plus million square feet and 24,000 acres of developable land.
The company is based in Los Angeles, California with regional offices in Columbus, Ohio and Boston, Massachusetts. It currently employs 82 people and manages approximately 300 major tenant companies nationwide, including Home Depot, Staples, Coca Cola, Lowe’s, Sony and Lego.
Mission Capital Advisors is extremely active in arranging financing for industrial, office, hotel, multifamily, retail, and self-storage properties across the country. The firm’s recent deals include securing bridge financing for a 1.1-million- square-foot mixed-use property in Sacramento; and arranging first-mortgage financing for a four-building industrial and office property in Los Angeles 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 Raleigh, North Carolina. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across debt, mezzanine, and JV equity placement; commercial and residential loan sales; 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 financing and loan sale 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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