MARKET OUTLOOK,REAL ESTATE INVESTMENT
Origin Investments and Kovitz | January 09, 2023
Focus Financial Partners Inc., a leading partnership of independent, fiduciary wealth management firms, recently announced that it entered into a definitive agreement enabling Origin Holding Company, LLC, a Chicago, IL-based private real estate fund manager, to join forces with Focus partner firm Kovitz Investment Group Partners, LLC.
The firm will continue to provide its real estate funds under the Origin brand while retaining its leadership and investment team. The deal is anticipated to conclude in the first quarter of 2023, subject to the fulfillment of customary closing conditions.
Origin is a prominent manager of private real estate funds specializing in multifamily residential assets. The company manages multifamily property funds to provide investors with tax-efficient income, capital appreciation, and portfolio diversification. Its funds have more than 3,000 individual investors, many of whom were referred by other high-net-worth organizations. Its performance places them in the top decile of 2022's best private real estate fund managers, according to Preqin, an alternative investing data provider.
This strategic transaction will significantly expand the footprint and scale of Kovitz's private real estate fund solutions for clients, building on the company's long history of real estate investing success. Through this agreement, Kovitz will make its operational capabilities and wealth management know-how available to Origin and its investors.
Meanwhile, Berkshire Global Advisors served as Origin's primary financial advisor in this transaction.
David Scherer, Co-CEO of Origin, concluded, "In evaluating strategic partners, our objectives were to preserve and promote the continuity of our well-established brand while also gaining access to additional resources to help us better serve our funds' investors and grow our business."
About Origin Investments
Origin Investments provides best-in-class real estate solutions to HNWIs, family offices, and RIAs. It manages multifamily real estate developments in fast-growing U.S. markets. Since 2007, the company has accomplished $2.5 billion in real estate transactions, while its principals have invested $60 million. Alternative investment data source Preqin says that the company's performance is in the top 10% of the world's best private real estate fund managers.
About Kovitz
Kovitz Investment Group Partners, LLC (Kovitz) is an SEC-registered investment adviser that serves individual and institutional customers. It connects HNWIs, institutions, and financial professionals to asset management and advising methods. It offers long-term investing options backed by rigorous research. The organization approaches financial planning and wealth management as active activities, helping clients make the right decisions.
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REAL ESTATE INVESTMENT, MORTGAGE AND LENDING
Gantry | January 23, 2023
Gantry, the largest independent commercial mortgage banking firm in the United States, recently informed that it produced $4.93 billion in commercial mortgages in 2022.
Meanwhile, even in 2021, Gantry had produced about $5.15 billion despite economic instability. It has broken records in the last three decades, completing the second-best production of commercial mortgage banking operations.
Jeff Wilcox, Principal of Gantry, said, "Last year was a tale of two halves, where after record setting Q1 and Q2 production totals, the market slowed for price discovery during the second half of the year. Despite the challenges, we have an experienced team that has successfully navigated cycle shifts in the past and operates proactively from that perspective."
(Source - Business Wire)
With $17.5 billion in national-level business in 2022, Gantry has no failed or missed transactions in asset types. This performance led to active interactions with clients as the originator and service provider, an actual rating at the time of placement, and a consultative role in choosing the best financial plan for the client's unique investment objectives. In addition, it examines every investment keenly for variations in performance, maturities, and tenant rollover at the annual assessments.
In 2022, Gantry provided 476 loans, including every type of commercial asset class. Around 85% of Gantry's 2022 production was financed by life insurers, regional banks, and credit unions, with each type of lender performing better for various borrowers. In terms of asset classes, Gantry continues to secure office, retail, and lender-preferred industrial and multifamily loan deals. In addition, Gantry successfully funded specialty assets, such as healthcare and self-storage, through various correspondent or associate lenders.
About Gantry
Gantry, a San Francisco-based private mortgage bank, has many correspondent lenders that use its production, closing, and servicing services. The company, founded in 1991, has approximately 100 employees in regional offices in the western US and New York and over 45 production teams that generated nearly $5 billion in the past year. The $17.5 billion nationwide servicing platform covers over 2,000 loans in 43 states. It is one of the few non-banking, non-insurance chartered companies with a Primary Servicer rating from Standard & Poor's.
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REAL ESTATE TECHNOLOGY, REAL ESTATE INVESTMENT
Choice Properties Real Estate Investment Trust | February 17, 2023
On February 16, 2023, Choice Properties Real Estate Investment Trust announced it has agreed to issue a $550 million total principal amount of series S senior unsecured debentures on a private placement basis in certain provinces of Canada. The senior unsecured debentures will bear interest at a rate of 5.400% per annum, and its maturity will be on March 1, 2033.
A syndicate of agents co-led by BMO Capital Markets, TD Securities, CIBC Capital Markets, RBC Capital Markets, and Scotiabank is offering the Debentures on an agency basis. The Offering is predicted to close on March 1, 2023, subject to customary closing conditions.
The Investment Trust plans to use the net proceeds from the Offering to pay off its outstanding $250 million total principal amount of 3.196% series G senior unsecured debentures due on March 7, 2023, to repay all or part of the remaining amount drawn on the Trust's credit facility, and for other general business purposes.
For the Offering to close, DBRS Limited must rate the Debentures as at least "BBB" (high) with a "stable" On February 16, 2023, Choice Properties Real Estate Investment Trust announced it has agreed to issue a $550 million total principal amount of series S senior unsecured debentures on a private placement basis in certain provinces of Canada. The senior unsecured debentures will bear interest at a rate of 5.400% per annum, and its maturity will be on March 1, 2023.
A syndicate of agents co-led by BMO Capital Markets, TD Securities, CIBC Capital Markets, RBC Capital Markets, and Scotiabank is offering the Debentures on an agency basis. The Offering is predicted to close on March 1, 2023, subject to customary closing conditions.
The Investment Trust plans to use the net proceeds from the Offering to pay off its outstanding $250 million total principal amount of 3.196% series G senior unsecured debentures due on March 7, 2023, to repay all or part of the remaining amount drawn on the Trust's credit facility, and for other general business purposes.
For the Offering to close, DBRS Limited must rate the Debentures as at least "BBB" (high) with a "stable" trend, and Standard and Poor's Ratings Services must rate them as at least "BBB." The Debentures will rank equally with the Trust's other unsecured indebtedness that has not been subordinated.
As amended, the Debentures made available are not registered under the U.S. Securities Act of 1933, and they cannot be offered or sold in the U.S. without registration or an exemption from the registration requirements.
About Choice Properties Real Estate Investment Trust
One of the leading Real Estate Investment Trust, Choice Properties creates enduring value through the operation, ownership and development of high-quality commercial and residential properties. The company believes that creating spaces that improve how our tenants and communities live, work, and connect adds value. Therefore, it strives to understand our tenants' needs and manage our properties to the highest possible standard. It is a Toronto, Ontario-based company that aims to build sustainable communities that are economically, socially, and environmentally sound. Its core values are care, ownership, respect, and excellence, and they inform all that Choice Properties do.
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