Brandon Roth | CRE Debt & Equity @RothCRE Twitter profile

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Brandon Roth | CRE Debt & Equity

7 months

Quick intro for those who don't know me yet. I've been working in commercial real estate since 2006. I started with appraisal, moved to CRE lending with Wells Fargo, and then into debt and equity brokerage in 2012 with HFF who eventually was acquired by JLL in 2019. I joined IPA

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Here's a short video clip from today's All-in Podcast where David Sacks uses his favorite resource 😀 to talk about the San Francisco office market. Everything he says about historical values, replacement costs, level of bank impairment, etc. is right on point.

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Brandon Roth | CRE Debt & Equity

@RothCRE

10 months

Fun fact: The buyer is the seller.

Triple Net Investor

@TripleNetInvest

10 months

A prime San Francisco office building just sold for ~$35 million - the seller took a huge 60% loss, paying $83 million for the property in 2016 However, the $35 million purchase price is ~40% higher than the $25 million pricing guidance which is a positive sign and perhaps a

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I had a call yesterday with someone who works at a large CRE development company and has about 10 years of development experience. He called because he has a good understanding of the development business, but doesn't get much exposure to the finance side and wanted to learn

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

BofA just sent their institutional clients a 27-paged document highlighting the intel shared at their CRE conference this week. Here's a thread going through the 6 key takeaways.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

A CLO (Collateralized Loan Obligation) in commercial real estate is when a lender originates multiple short-term bridge loans, pools them together, divides the pool into "notes" with different risk-return profiles, and then sells the notes to investors. You can think of it as

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Buying office buildings in SF is currently one of the best investment opportunities in the country. Here's a quick thread showing the notable office buildings that have sold this year compared to their prior price, as well as the deals currently under contract and for sale.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Given the rapid rise of interest rates and cap rates, one of the most common situations today is a property with a maturing loan that no longer qualifies for the same level of senior loan proceeds. One solution is for the owner to bring in a new capital partner to help bridge

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Goldman Sachs published a new 26 page report called Commercial Real Estate Risks. It includes: - CEO of RXR interview - CRE Credit Risks - Signals of Stress - Q&A on Financing - Much more 'Follow' & comment below if you'd like to see the report and I'll DM it to you. Thanks!

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

When you work for a large brokerage firm you have every resource available to you – Excel models for every deal type, graphic designers for OMs, massive contact database, etc. The moment you leave you can’t take any of these with you and need to start from scratch. Here are the

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

I was just looking at an appraisal that was ordered for Freddie Mac by Walker & Dunlop. The appraisal was completed by a firm called Apprise, which is owned by … Walker & Dunlop. A lender owning the company that appraises the loans they’re originating before they’re sold to a

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Quick tip for younger analysts reading this. The easy way to calculate potential loan proceeds from a new lender is by taking the NOI and dividing it by the debt yield. For example, a $1M NOI and a 10.0% debt yield would be a $10M loan. However, with the rise of interest

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

If you're wondering why rates spiked today, there are three primary reasons: 1) Job openings were expected to decrease from 8.9M to 8.8M, but they actually increased to 9.6M (7.9%). 2) The Cleveland Fed President (Loretta Mester) said, “I suspect we may well need to raise the

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

Just got off a call with a major national bank regarding loan modifications. Here are a few notes: ‣ Doing a ton of loan mods right now, but each one is different. There's a not a "one size fits all" approach. ‣ They'll approach modifications differently for borrowers that

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I've looked at a couple deals recently where the sponsor's model still reflected an interest rate in the 5's. I pulled together a chart illustrating that for every 25-bp increase in interest rate, your loan proceeds decrease by approximately 2.6%. Have rates gone up 50 basis

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I figured I should build this in public so I can incorporate any useful feedback along the way. This table attempts to explain debt fund pricing. Debt funds are targeting "low-to-mid teens" returns, which can mean 12-14% for multifamily and 14-16% for riskier asset types. In

Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I had a call yesterday with someone who works at a large CRE development company and has about 10 years of development experience. He called because he has a good understanding of the development business, but doesn't get much exposure to the finance side and wanted to learn

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

Jon Gray (President of Blackstone) was interviewed on Bloomberg this morning. Here are the key take-aways: - A potential risk is that central banks don't want to move too quickly to stimulate the economy and will be patient in reducing rates, which could cause a slow down. - A

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Brandon Roth | CRE Debt & Equity

@RothCRE

10 months

I had a call this morning with someone that suggested I should start a podcast interviewing different capital providers, e.g. co-gp, preferred equity, mezz, bridge lenders, etc. What do you think? Is there any demand for that?

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Brandon Roth | CRE Debt & Equity

@RothCRE

6 months

Jamie Dimon (CEO of JPMorgan) published his annual letter to shareholders this morning. It's very long and wide ranging, but he had a few comments on the economy that caught my eye: "It is important to note that the economy is being fueled by large amounts of government deficit

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I spoke to an equity investor two days ago that's focused on co-GP investments for ground-up and value-add deals. They'll consider all property types, can invest up to $10M, and will sign guaranties. If you'd like to see their PDF overview, comment below and I'll DM it you.

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

I’m happy to share that I've joined Institutional Property Advisors ( @IPA_USA ) as Managing Director, focusing on debt and equity placement. I spent many months evaluating various options and came to the conclusion that IPA is the platform that will help me provide the most value

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I just got off a call with a family office that has an interesting structured equity program that's a hybrid between preferred equity and JV equity: ‣ Stabilized or value-add multifamily and student housing ‣ $3M-$10M check size ‣ Targeting Texas and Eastern half of the US ‣

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

Given the decline in property values over the past 12 months and upcoming wave of loan maturities in 2024, there are many borrowers and lenders currently working through loan modifications to extend the loan term for an additional 6 to 24 months. I recently reached out to many

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

This section is going to be less exciting than debt fund math, but it's important nonetheless 😀 There are 5 common types of guaranties in commercial real estate: 1. Repayment Guaranty 2. Non-recourse Carve-out Guaranty (“bad boy” guaranty) 3. Completion Guaranty 4. Interest

Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I figured I should build this in public so I can incorporate any useful feedback along the way. This table attempts to explain debt fund pricing. Debt funds are targeting "low-to-mid teens" returns, which can mean 12-14% for multifamily and 14-16% for riskier asset types. In

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Howard Marks is the co-founder of Oaktree and one of the most successful and respected investors on Earth. He published a new 8-page memo today called "Further Thoughts on Sea Change." You can find the full memo on Oaktree's website, but here are the main points: ‣ There is

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Brandon Roth | CRE Debt & Equity

@RothCRE

9 months

Finding a bridge lender for sub-$10M loans can be challenging without the right contacts. I've uploaded the PDF overviews for 51 small balance bridge lenders to Box. If interested, comment below and an auto-DM will be sent with the link. FYI, DM's can only be sent to followers.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I spoke to a family office yesterday that's providing 99-year ground leases as an alternative to preferred equity. A few notes: ‣ Check sizes $10M-$100M ‣ Sizing to 30-35% of the fee simple value ‣ Rate of approximately 6.0% ‣ ~2% annual ground rent increase ‣ Offer

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Just got off a call with a lender that has both a debt fund and a mortgage REIT. Here are the take-aways: ▪️ Prices as low as SOFR+2.75% for the best deals, but spread can range from 3.00% to 5.00% depending on deal profile. ▪️ Minimum loan size is $25-30M ▪️ All asset types

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

30 Comments from CRE Lenders: There was a major commercial real estate finance conference held in Vegas 10 days ago. I reached out to 15 lenders that attended and asked about their top 2-3 takeaways. Here’s what they had to share: Transaction volume is substantially lower:

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

PGIM Real Estate published a report two days ago called, "U.S. CRE Debt: Why the Funding Gap may be Larger than we Think". Here's a short thread sharing the key take-aways and corresponding graphs.

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Brandon Roth | CRE Debt & Equity

@RothCRE

10 months

@joeybaum13 Vanbarton owned the building. The lender (BofA) was running the sales process since it was a short sale. Vanbarton was selected as the buyer and effectively paid off their $53M note for $35M.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Just got off a call with a lender that's rolling out a new small balance loan program. Their goal is to provide a 5-year fixed rate option for multifamily borrowers that need more leverage and I/O than they can find from regional banks. Asset Type: Stabilized multifamily only

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

With rates this high, no one wants to lock-in a long-term fixed-rate deal without prepayment flexibility. I just got off a call with a lender that's offering: ‣ 5 year term ‣ Fixed rate in the mid-to-high 7's ‣ No amortization (Full-term I/O) ‣ Flexible prepayment ‣ Sizing

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

Just got off a call with an investor with family office capital that's looking for high teens returns. They closed a $13M high-leverage pref equity investment last month for a large multifamily development. Here's the capital stack: - Senior loan from a non-bank lender, 60%

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Deloitte just released their 2024 CRE Outlook report where they surveyed 750 CFO's and their direct reports at major commercial real estate owners and investment companies around the world. The preferred asset classes for 2024 are data centers and BTR communities.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Here's a table showing the agency soft quotes I received yesterday for a deal on the west coast, which will give you a sense of current pricing. This is for a new multifamily building that just finished lease-up. We're likely moving forward with the terms I bracketed in red,

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

A few days ago I posted about how borrowers are financing multifamily deals with CMBS loans more frequently in the current environment. After seeing that post, a sponsor reached out to talk about a new deal and I think it's a good example that illustrates the circumstances where

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Given the vast number of multifamily projects under construction, I thought it would be worthwhile to share how lenders are currently sizing and pricing multifamily bridge loans for new properties in lease-up. These loans are typically 2 to 3 years in duration and are intended

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Brandon Roth | CRE Debt & Equity

@RothCRE

9 months

I recorded the first podcast episode with Shawn Cully from Prime Finance. Shawn has closed over $5 billion of bridge loans in the 14 years that he's been with Prime. We covered many topics, including: - How he got started in CRE - How Prime was created - How debt funds work -

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Brandon Roth | CRE Debt & Equity

@RothCRE

8 months

Blackstone’s co-head of real estate (Nadeem Meghji) was interviewed on Bloomberg this morning. Here are the take-aways: - $65B of “dry powder” across their real estate vehicles - Raised $30B global opportunistic fund that closed last year. - BREIT was created 7 years ago and

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Brandon Roth | CRE Debt & Equity

@RothCRE

6 months

Ground leases are being used as an alternative financing tool because they can provide incremental leverage while lowering the blended cost of capital for both development projects and existing assets. They're also being widely considered today as an option to pay down senior

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

I was working with a multifamily owner that recently delivered a building and had an upcoming loan maturity. The challenge was that the initial construction loan from 2021 was high leverage (80% LTC) and there was no interest rate cap, so the SOFR+2.00% loan had become 7.33%.

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

Just got off a call with an investor that has a creative structure for deals that are above 100% LTV. They're working with the senior lender to split the existing loan into an A-note and a B-note. The new investor will provide preferred equity that sits between the A-note and

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Just got off a call with a capital provider that has an interesting niche. They're an impact investor providing capital to real estate projects that meet one of their four investment themes: 1) Economic growth & job creation 2) Underserved communities 3) Underrepresented

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

There are a couple comments I need to add to @TripleNetInvest 's post: 1) Blackstone financed the 2018 acquisition with a $150M loan from ING for 5 years that was maturing next month (I included a screenshot of the Deed of Trust). ING is really driving this sale. I wanted to

Triple Net Investor

@TripleNetInvest

1 year

Blackstone is selling a building in San Francisco for $82 million They bought the property for $245 million just 5 years ago in 2018! Buying SF real estate within the next year or two just might be the best opportunity within any asset class Who here is going to take

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

The 10-year treasury increased 17 basis points today from 4.53% to 4.70%. The major reason is the release of CPI data at 8:30am ET that came in slightly higher than anticipated (0.4% increase in September vs 0.3% expected). Market psychology is such a strange game to me. I

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Quick intro for those that don't know me yet. I've worked in the commercial real estate industry for 17 years. The last 10 years have been focused on raising debt and equity across the country. This includes all asset types and loan amounts. I've closed 43 deals under $20M and

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Finding bridge lenders for sub-$10M loans can be hard. So I uploaded 15 small balance bridge lender programs to my Box account to get you started. Follow & Comment below and I'll DM you the link to the folder. If this may be helpful for anyone your audience, please Repost.

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

OME Apartments in SF sold a couple days ago for $27.15M according to CoStar, which equates to $646K/unit. The buyer hasn't been disclosed yet, but I suspect it's the City of SF. Back on May 2nd, Mayor London Breed announced the intention to purchase it for "use as supportive

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Spoke to a Pref Equity investor this afternoon looking for $1M-$15M deals (main target is $2M-8M). Their competitive advantage is no minimum multiple. Repost & Comment below if you'd like me to DM their flyer. Thanks! Reminder: I can't send a DM if you're not 'following'.

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Brandon Roth | CRE Debt & Equity

@RothCRE

6 months

Just got off a call with a pension fund advisor that's investing LP equity on behalf of two large pension funds. Here's what they're targeting: - Core Plus Multifamily - Top 25 MSAs outside of the Northeast and Midwest - 2010 vintage or newer - 4.5% cap going-in using T-3

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

There are over 4,000 banks in the US. How do you find the right regional/community bank to finance your property in a new market? Here's one way to do it: Search the FDIC's 'Deposit Market Share Reports' (link in the comments). It's an online tool that allows you to search by

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Bethany's post talks about someone losing their property even though it's stabilized and performing well. They lost it because there was an ongoing operating covenant to maintain a certain LTV, and when values fell they were required to pay down the loan and couldn't. It

Bethany | Commercial Real Estate

@bethanyjbabcock

1 year

How does someone who has never been late on a payment lose their property to the bank? Grab some popcorn… A very experienced & well financed developer spent 15 years assembling land, securing tenants and building a massive power center. The first phase of the project leased

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Have you been following the drama around Nightingale Properties and how they stole over $60 million from 800+ investors? The story has been evolving, but here's a thread of what we know so far.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I found an investor that has two interesting programs for middle market deals. 1) JV or Co-GP Equity: $2M - $8M check sizes nationwide. Just closed $5M in NC. 2) Bridge: $2M - $20M loans. Up to 80% LTC. Lending in TX, NM, AR, and OK. Follow & Repost, and I'll DM their flyer.

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Brandon Roth | CRE Debt & Equity

@RothCRE

9 months

I asked a collection of family offices, equity funds, debt funds, life companies, and banks the following question: What's your personal outlook for 2024? Here are 22 responses: Family office - "I think it will be a great environment to deploy capital in. Specifically excited

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

5) Office buildings constructed in 2015 or newer have had 112 million square feet of positive absorption since COVID.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

This is going to be an interesting story once all of the details come out. The gossip is that a couple offices got raided, but who knows. I also imagine if you're getting blacklisted by Freddie, then you're probably also not doing deals with Fannie anymore. Link in the comments.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I spoke to a new bridge lender this morning that just received a $150M commitment from an institution, which will provide ~$500M of lending capability as they lever it. Here are a few details: ‣ Targeting smaller bridge loans, e.g. $5M-30M ‣ 70-75% LTC ‣ Will be competitive

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I came to the city tonight for a closing dinner. Took BART to Montgomery Street and walked through the financial district to meet a friend for a drink before heading to the restaurant. On my way I saw a driverless Waymo pass by, which is apparently a thing now and there’s a

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

I'm hearing that cap rates increased as rates were rising, but they're not coming back down with rates falling. i.e. pricing was elastic with rates rising and inelastic with rates falling. The reason being is that buyers saw how quickly the 10-year treasury got to 5% and

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

6) The composition of CRE bank lenders is changing. Regional banks are ramping up activity as larger banks are pulling back.

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

If you need to estimate the cost of an interest rate cap, Chatham's website has a great tool. I'll include a link in the comments. Their site also includes: - Current rates - Forward curves (downloadable as well) - Defeasance calculator - Yield maintenance calculator If you've

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Brandon Roth | CRE Debt & Equity

@RothCRE

5 months

Just got off a call with a large open-ended debt fund that's focused on bridge lending. There are a few data points worth sharing: 1) They recently issued two term sheets at 70% LTV. The first is multifamily at SOFR+2.85% and the second is for student housing at SOFR + 2.65%.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

When arranging financing for new multifamily development today, the challenge is LP equity - not senior debt or mezz/pref. This is illustrated by a new ground-up development deal in San Diego called Ion Aero, which will be 302 mid-rise multifamily units. Total project costs are

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I recently caught up with institutional LP groups to learn how they're currently thinking about underwriting new multifamily acquisitions. It seems that a lot of the institutional investors are waiting for newer vintage product to start pricing in the 5.25% - 5.50% range for

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Brandon Roth | CRE Debt & Equity

@RothCRE

6 months

Jon Gray from Blackstone was interviewed on CNBC this morning. Here are my notes: - Seeing positive trends that are good for their business, e.g. transaction activity has picked up, equity markets have been strong, and increase of flows into some of their products like private

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Brandon Roth | CRE Debt & Equity

@RothCRE

7 months

Just got off a call with a CMBS lender. Here's a quick update on the market: - The spreads they're quoting have come in ~80 basis points over the past three months. - They're financing far more multifamily deals than they have in the past. There's a $683M securitization

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

4) The "doom and gloom" office narrative is ignoring important nuances around office location and quality. There's a "tiering" dynamic when comparing newer buildings in good locations vs older commodity office in worse locations.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Just spoke to a life insurance company that's looking to place equity into development deals. ‣ Focused on multifamily, BTR, industrial ‣ Equity check size of $20M-40M ‣ Targeting "high teens" IRR to the LP ‣ 3-5 year hold period ‣ Most of their JV's are 90/10

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Brandon Roth | CRE Debt & Equity

@RothCRE

8 months

I just spoke to a co-GP investor that's targeting the following: - Up to 80% co-invest in the GP position - $3M to $6M check size - Primary or strong secondary markets nationally. Avoiding Houston and South Florida due to insurance issues. - Value-add deals (not

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Brandon Roth | CRE Debt & Equity

@RothCRE

9 months

Treasury yields are up 20 basis points this week. Here are a few reasons why: The Fed is pushing back on potential rate cuts. A report over the weekend showed that the Atlanta Fed President said inflation could "see-saw" if rates are cut too soon. Then on Tuesday, Fed Governor

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Had a call this morning with one of the top 3 banks in the country. Here are a few notes: -- Doing very little right now, but did recently close a $300M+ construction loan. It was a club deal between Bank of America, Wells Fargo, and JP Morgan. 55% LTC priced at SOFR +3.50%.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Quick intro I've worked in the commercial real estate industry for 17 years, which has included appraisal, lending, and mortgage banking. I've always wanted to start my own business, so in May 2023 I decided to take the leap and started Lakebrook Capital, Inc. which was named

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Brandon Roth | CRE Debt & Equity

@RothCRE

5 months

Here's a quick Fannie and Freddie update: Fannie Mae: They funded $2.7B in April, which is up from $2.6B in March. In the next few weeks, Fannie is going to come out with an update that'll make it easier to do deals that include pref equity. The guidelines will likely be

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

2) CRE fundamentals have started to deteriorate as evidenced by special servicing and delinquency rates starting to tick up.

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Brandon Roth | CRE Debt & Equity

@RothCRE

8 months

Last Friday I reached out to CRE investors to ask what trends they're seeing so far in 2024. I received 74 comments from 28 groups. Here are the responses, grouped by asset type: MULTIFAMILY West Coast MF Investment Firm • Although there's a lot of variability, in general Bay

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Brandon Roth | CRE Debt & Equity

@RothCRE

10 months

The 10-year treasury dropped 19 basis points today and is currently 4.0%. Here's why: The Federal Reserve issued two documents at 2pm ET: The FOMC statement and the Summary of Economic Projections. The FOMC statement had three key changes compared to last month. They

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I had three interesting calls today: 1) An investor that focuses on $3M - $6M mezz or pref investments. They have a $250M evergreen mezz fund and then a series of $50M-$100M pref equity funds. The mezz can be as long as 10 years and they often do it behind CMBS and banks. This

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

3) BofA is projecting interest rates to remain elevated.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

@realEstateTrent Thanks for sharing. City planners trying to play the role of developer is one of my biggest pet peeves. I’ve worked on two developments where the city required second floor office space in an apartment building. Guess which floor is still vacant three years later. Some cities

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

One key question that can save millions in mezz/pref financing costs. Ask your senior lender(s) this: “Can you please provide a list of the mezz/pref groups where you have already negotiated an intercreditor or recognition agreement?” It matters for two main reasons: 1) When

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Most floating rate loans in CRE are priced over 1-Month Term SOFR, which is currently 5.31%. The market tends to look at the forward SOFR curve to estimate the future path of the index (although it's often wrong). After the latest Fed meeting, this curve shifted upwards ~35

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Here are the notes I saved on the Office Market from Goldman's Commercial Real Estate Risks report: ‣ People tend to paint all office buildings with the same brush, but some will be competitive and others won't be. Newer/high-quality office buildings that are sufficiently

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I'm struggling with something and could use some advice. For context, I worked for a large CRE brokerage as a capital markets advisor for 10 years before starting this company six months ago. At the large firm, I was focused on building relationships with clients based in my

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

1) The FDIC announced they're partnering with Newmark to sell Signature Bank's $33 billion loan portfolio. The majority of the loans are secured by NYC multifamily properties. The FDIC expects all marketing and dispositions to conclude within three months.

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

Just got off a call with a life insurance company that's had a pretty successful year financing multifamily and will end the year around $2.5B in loans funded. Although their typical pricing (Treasuries+2.00%) may be slightly wide of the agencies, they've been winning their fair

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

This table shows a few debt quotes that were just received for the acquisition of a recently built and stabilized apartment community on the east coast. A few notes: - The first two columns show the 5 year options, which is the duration many buyers are focused on. - Although

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Had a variety of calls today. Here are a few things I learned: • Who the buyers are for the 75-property Veritas loan portfolio in SF 😬 • A capital provider just quoted a pref piece behind an agency loan up to 83% LTC priced at 13% fixed with 6% paid current and 7% accruing.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

If you enjoyed this thread: 1. RT the post below to share this thread with your audience 2. Sign up for my CRE debt market updates (link on my profile)

Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

BofA just sent their institutional clients a 27-paged document highlighting the intel shared at their CRE conference this week. Here's a thread going through the 6 key takeaways.

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

I spoke to a couple debt funds yesterday that create leverage via the CLO market. Here's what I learned: ‣ The CLO documents spell out "permitted modifications" that are within their control, but other modifications could involve the special servicer, rating agencies, and bond

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

When working on preferred equity, many people tend to focus on rate and fees. However, if it’s a short-term deal (3 years or less), then minimum multiple is likely the most important factor influencing the total cost of capital. For example: You’re seeking $10M of preferred

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Brandon Roth | CRE Debt & Equity

@RothCRE

4 months

Just got off a call with a new lender that’s targeting high leverage multifamily construction loans. Here’s their criteria: Loan size: $25M-75M LTC: Up to 80% LTC Debt Yield: 8.0% in most markets Pricing: SOFR + 5.5% to 6.0% Fees: 1% above $50M and 1.25% below 50M. Minimum

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

There's a CMBS securitization currently in the market that includes 28 loans secured by 140 properties. Fitch just came out with their 96 page report summarizing the pool. For each one of the 15 properties listed below, the Fitch report includes a collateral summary, sources &

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

In case anyone's interested, these are the Excel and Argus alternatives that were recommended: - Archer - Rockport VAL - RedIQ - CRED iQ - TheAnalyst PRO - rDCF - planEASe

Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

I've always used Excel for underwriting multifamily deals. It works and is certainly the standard, but are there any other new programs out there that people find to be a better tool for lease-up deals? Your cash flows would be far more accurate if you could enter the monthly

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

I had a call this morning with a mortgage REIT and there were a few interesting take-aways for multifamily developers with projects under construction. ‣ There's strong demand from lenders for financing new apartment buildings at TCO to refinance the existing construction loan.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Given how many multifamily projects are under construction and will be delivered shortly, I reached out to a representative sample of the bridge lending market this week to ask if they've recently quoted a multifamily lease-up deal. I received 32 examples of loan sizing and

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Brandon Roth | CRE Debt & Equity

@RothCRE

11 months

@constantraise People followed you because they believed your expertise was authentic. Now they know you’re a con-artist with no real value to offer. Your “media account” is worthless and will never be monetized.

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Brandon Roth | CRE Debt & Equity

@RothCRE

1 year

Here's one benefit of the inverted yield curve for developers. If your construction lender is a bank that provides swaps, you can swap your floating rate for a much lower fixed rate. I have a client who just did this in August. They were originally quoted SOFR + 3.00% and then

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Brandon Roth | CRE Debt & Equity

@RothCRE

8 months

@shawngorham That’s because you’re in the middle market / private developer space where individuals matter more than companies. It’s the same space where BK found most of his clients. He’s his own brand at this point and doesn’t need JLL to be successful. However, large institutions managing

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