Blackstone cashes out on Invitation Homes

Blackstone | November 22, 2019

Blackstone’s bet on the single-family rental market is now complete, as it was revealed this week that Blackstone is selling off its remaining shares in Invitation Homes for more than $1.7 billion. In the early part of this decade, Blackstone began pouring money into distressed residential real estate, spending billions to buy up foreclosures and other distressed properties, then turning those houses into single-family rental properties. Blackstone’s move into single-family rentals was conducted through Invitation Homes, which the firm helped grow into one of the nation’s largest single-family rental operators.

Spotlight

There will be significant regulatory changes with the TILA-RESPA Integrated Disclosure (TRID) rule that will impact the U.S. mortgage and home closing process effective August 1, 2015. We’ll be ready when the new rules go live, so the process will be seamless for our clients and their transferring employees.


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REAL ESTATE TECHNOLOGY

Houwzer Names Jonathan Zabusky Executive Chairman of Board of Directors to Help Drive Next Stage of Company’s Growth

Houwzer | April 19, 2022

Houwzer, a next generation real estate brokerage and homeownership platform powered by proprietary technology and an all-W2 labor model, announces that advisor, entrepreneur, and investor, Jonathan Zabusky, will join the company’s board as Executive Chairman. Zabusky, most recently the President and Board Director at GrubHub Inc., will act as a co-pilot to Houwzer’s CEO, Mike Maher, helping drive the next stage of growth at the company, which pulled in $118M in equity and debt as part of a Series B funding round earlier this year. With the new funds, Houwzer is introducing three new products, Cash Advantage, Convenience Offers, and Buy Before You Sell, to help clients remain competitive in the most challenging housing market in history. Zabusky will work alongside Maher to help refine corporate strategy, which is timely given the current state of the housing market. As a seasoned CEO and operator, Zabusky will provide mentorship to Maher as a strategic thought partner as he navigates the company through market volatility and unprecedented change. He will also ensure maximum collaboration and vision alignment between the other Directors and the management team transforming the Board into a strategic weapon for the business. I am incredibly excited to join Houwzer's Board as Executive Chairman and to have the opportunity to work alongside Mike and his outstanding team. I’m energized by our mission to elevate the home buying and selling experience to become more fair, transparent, and seamless. Houwzer's robust suite of integrated tools, products and technology, coupled with a deeply engaged and aligned team of expert agents, facilitates a more enjoyable and productive real estate journey for its clients." Zabusky Zabusky led Seamless, as its CEO, through tremendous growth before merging it with GrubHub. After the merger, Zabusky led corporate strategy and development, product, marketing, and corporate and restaurant sales as GrubHub’s President. During his tenure, he successfully integrated multiple strategic acquisitions and played a pivotal role in the company’s initial public offering. Zabusky is Founder and Managing Partner of Bounce Ventures LLC and also serves as an advisor and board director to a portfolio of venture and private equity-backed companies in the U.S. and Israel. “Jonathan brings a wealth of strategic growth experience to the team,” says Houwzer CEO and Founder, Mike Maher. “As we continue building on our momentum, he will play a critical role in fine-tuning our approach and ensuring we continue to prioritize resources to accelerate growth and market share. I couldn’t be more excited to work alongside an entrepreneur as successful and thoughtful as Jonathan.” Houwzer also announced the recent hiring of Andrew Daley as Chief Marketing Officer. Daley brings two decades of high-growth experience in highly competitive environments, helping companies differentiate their brands across a range of industries like mobility, real estate, and travel. Most recently, he led marketing for Hana, a CBRE company that redefined the flexible office space experience. Daley has also served as Global Head of Marketing for Zipcar and in key marketing functions for Starwood Hotels, Reebok, and several online travel and startup brands. “The real estate industry is ripe for disruption and the incumbent model is broken. Houwzer is realigning the incentives more fairly between the broker, the agent, and the client so that everyone wins. The end result is a better, faster, smarter way to buy, sell, finance, and insure homes,” says Daley. Houwzer has eliminated the percentage-based commission pricing for listings and rebuilt the brokerage model around the customer, creating a one-stop shop for real estate, mortgage, title, and insurance that simplifies the chaotic and expensive process of buying and selling homes. Its $5,000 flat-fee listing model empowers sellers to maximize their profit – saving an average of $15,000 in commissions, while still providing a full-service experience via technology and expert, salaried agents. Houwzer has helped clients buy and sell more than 4,000 homes with a cumulative sales volume of nearly $2 billion, saving home sellers $35 million in brokerage commissions. Houwzer is the only real estate company operating on an all-W2 compensation model across all of its salaried agents and mortgage advisors. It’s also the industry’s first B Corporation real estate brokerage and will soon be announcing its newly appointed Board of its impact model, the RiseUp Fund. Recently, the company entered into a partnership to become the Official Real Estate Partner of the 76ers. About Houwzer Houwzer is a next-generation real estate brokerage and home services company built around the customer. Its full-service, salaried agents and loan officers help homeowners save when they sell and trust when they buy. Houwzer’s proprietary technology is an end-to-end platform that streamlines the entire transaction from beginning to end with an integrated one-stop shopping experience. The company employs unique salaried agents as dedicated seller or buyer agent specialists who receive salary instead of commissions, allowing them to focus on service, not just sales. Houwzer has maintained an industry-leading Net Promoter Score of 84 and an average rating of 4.9 out of 5 stars from over thousands of client reviews online. Since launching in 2015, Houwzer has saved home sellers along the East Coast over $35 million and helped clients buy or sell thousands of homes worth almost $2 billion.

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INVESTMENTS

Lument Provides $26.7 Million Bridge Loan for the Acquisition and Renovation of Florida Multifamily Community

Lument | January 27, 2022

Lument recently announced the closing of a $26.7 million proprietary bridge loan to acquire and renovate Harbor Village Apartments and Townhomes, a 229-unit multifamily apartment community in Melbourne, Florida. Josh Messier, managing director at Lument, led the transaction. It was a pleasure to work with these experienced, repeat Lument clients, We were able to structure and fund 100% of the required capital expenditures with loan proceeds to help them achieve their goals, including $3.8 million in capital improvements to upgrade unit interiors and amenities." Messier. The $26.7 million bridge loan features a variable interest rate and a three-year term, with two 12-month extension options. The community's current occupancy is 96%. The Harbor Village property is made up of two sections: Harbor Village Apartments and Harbor Village Townhomes. Harbor Village Apartments was completed in 1976 and is situated on 6.43 acres of land with 143 apartments in eight buildings. Harbor Village Townhomes contains 86 units in 18 two-story wood frame town-homes and was built on 5.80 acres in 1983. Onsite amenities for each section include a swimming pool and laundry facility. About Lument ORIX Real Estate Capital Holdings, LLC, d/b/a Lument, is a subsidiary of ORIX Corporation USA. Lument is a national leader in commercial real estate finance. As the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard, and RED Capital Group, Lument delivers a comprehensive set of capital solutions customized for investors in multifamily, affordable housing, and seniors housing and healthcare real estate. Lument is a Fannie Mae DUS®, Freddie Mac Optigo®, FHA, and USDA lender. In addition, Lument offers a suite of proprietary commercial lending, real estate investment sales, investment banking, and investment management solutions. Lument has approximately 600 employees in over 25 offices across the United States. Securities, investment banking, and advisory services are provided through OREC Securities, LLC, d/b/a Lument Securities, Member FINRA/SIPC. Investment advisory services are provided by OREC Investment Management, LLC, d/b/a Lument Investment Management. OREC Investment Management is registered as an investment adviser with the U.S. Securities and Exchange Commission.

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REAL ESTATE INVESTMENT

Walker & Dunlop Structures $302 Million in Financing for 10-Property Apartment Portfolio in Connecticut

Walker & Dunlop, Inc. | March 08, 2022

Walker & Dunlop, Inc. announced that it structured $302,241,000 in Freddie Mac financing for a portfolio of ten multifamily properties in central Connecticut. The portfolio comprises 2,286 units in total, over 75% of which qualify as mission-driven, affordable housing under Federal Housing Finance Agency (FHFA) guidelines. Taylor Williams, Managing Director in Walker & Dunlop's Capital Markets group, structured the financing on behalf of Beachwold Residential, a repeat client and family-owned real estate company headquartered in New York City. The team provided support to the client throughout the entire deal process, working to ensure the latest rental rate increases were captured in the appraisal and underwriting processes. The new loan effectively provided the borrower with an attractive fixed rate and additional proceeds. Taylor Williams and his team are experts. They provided clear and prescient guidance throughout the process, and their reaction time to any queries we had was exceptional. They are truly professionals when it comes to dealing with this type of transaction." Gideon Friedman, CEO of Beachwold Residential "It was an honor to be chosen for this transaction by Gideon Friedman and the Beachwold team," Mr. Williams added. "We were able to effectively execute the deal with an excellent rate, thanks to our skilled team and solid partnership with Freddie Mac." The ten-property portfolio is comprised of a diverse and unique set of communities with construction dates ranging from 1926 to 2008. The oldest property, 278 Main, was originally a schoolhouse, which was converted to apartments. Another distinctive property is Lofts at the Mills, a former mill that was recently converted to loft apartments. Most of the properties within the portfolio are situated in irreplaceable infill locations throughout Connecticut. Walker & Dunlop was the top provider of capital to the U.S. multifamily market in 2020, and in 2021 the firm originated $49 billion in debt financing volume, including lending over $42 billion for multifamily properties. About Walker & Dunlop Walker & Dunlop is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune's Great Places to Work and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.

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REAL ESTATE INVESTMENT

Terreno Realty Corporation Acquires Property in Santa Clara, CA for $54.6 Million

Terreno Realty Corporation | May 09, 2022

Terreno Realty Corporation, an acquirer, owner and operator of industrial real estate in six major coastal U.S. markets, acquired an industrial property located in Santa Clara, California on May 4, 2022 for a purchase price of approximately $54.6 million. The property consists of one industrial distribution building containing approximately 135,000 square feet on 6.5 acres. The property is at 3660 Thomas Road, adjacent to US 101, the Bayshore Freeway, provides 13 dock-high and five grade-level loading positions and parking for 91 cars. The property is 100% leased to four tenants, which expire between 2022 and 2027, and the estimated stabilized cap rate is 2.5%. Estimated stabilized cap rates are calculated as annualized cash basis net operating income stabilized to market occupancy (generally 95%) divided by total acquisition cost. Total acquisition cost includes the initial purchase price, the effects of marking assumed debt to market, buyer’s due diligence and closing costs, estimated near-term capital expenditures and leasing costs necessary to achieve stabilization. AboutTerreno Realty Corporation Terreno Realty Corporation acquires, owns and operates industrial real estate in six major coastal U.S. markets: Los Angeles, Northern New Jersey/New York City, San Francisco Bay Area, Seattle, Miami, and Washington, D.C.

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Spotlight

There will be significant regulatory changes with the TILA-RESPA Integrated Disclosure (TRID) rule that will impact the U.S. mortgage and home closing process effective August 1, 2015. We’ll be ready when the new rules go live, so the process will be seamless for our clients and their transferring employees.

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