REAL ESTATE INVESTMENT

Toorak Capital Partners Closes $285M Residential Bridge and $363M DSCR Securitizations

Toorak Capital Partners | March 15, 2022

Toorak Capital Partners, Inc., a leading capital provider to the residential real estate lending industry, announced the successful closing of TRK 2022-1, a $285 million securitization of residential bridge loans, following the closing of TRK 2022-INV1, a $363 million securitization of DSCR loans last month.

Toorak’s securitizations received investor demand despite a volatile and oversupplied market. To date, the company has issued $2.7+ billion in securitizations across nine deals, including six revolving transactions backed by bridge loans and three rated transactions backed by long-term investor loans on rental properties.

We are focused and proud of the social impact Toorak has had. In addition to aiding in the delivery and availability of units to the market, many of which are affordable, Toorak’s funding brings jobs and opportunities to areas that are often neglected by large investors. Our bridge loan borrowers are entrepreneurs who invest the funds we provide to hire and employ local workers, many with untraditional backgrounds and in low-income neighborhoods.”

John Beacham, Toorak CEO

The initial collateral underlying the TRK 2022-1 securitization consisted of 583 residential bridge loans that financed approximately 1,300 housing units, 78% of which are expected to be affordable upon rehabilitation and/or stabilization in their respective zip codes, where the median household income was close to $55,900.

The TRK 2022-INV1 securitization consisted of 1,254 rental mortgages that financed around 2,300 units, with an average underwritten rent of approximately $1,600 per unit, compared to a median household income of $55,700 in their respective zip codes.

With capital commitments from entities managed by KKR, a leading global investment firm, Toorak has revolutionized the way business purpose residential real estate lenders access capital. The firm was the first to link small-balance commercial and residential originators with institutional capital and has perfected this approach in the single-family residential bridge and 30-year single family rental lending space.

About Toorak Capital Partners
Toorak Capital Partners is an integrated correspondent lending platform based in Summit, NJ. Toorak acquires small-balance, business-purpose loans backed by residential, multifamily, and mixed-use properties throughout the U.S. and the U.K. Toorak acquires loans directly from lenders that originate high credit quality loans. Toorak’s principals have a deep understanding of mortgage credit in the residential and commercial space with backgrounds in real estate lending, capital markets, securitization, asset-liability management, asset management and credit. Since inception, Toorak has provided more than $7.5 billion in capital and funded over 20,000 business-purpose loans. Toorak-funded projects have renovated, stabilized or provided rental housing for close to 40,000 families to date – an average of approximately 1,000 families per month in 2021.

Spotlight

Which Cities attract the most Real Estate Investment relative to their size? JLL’s Investment Intensity Index compares the volume of real estate investment over a three-year period relative to the economic size of a city. This provides a useful measure of a city’s real estate market liquidity, giving insights into which cities are punching above their weight in attracting real estate investment.


Other News
REAL ESTATE TECHNOLOGY

Houston Multifamily Community with Significant Value-Add Potential Trades Hands via Walker & Dunlop

Walker & Dunlop, Inc. | June 02, 2022

Walker & Dunlop, Inc. announced that it completed the sale of Parc at Champion Forest, a 232-unit, garden-style apartment property located in Houston, Texas. Built in 2000, the community provides the buyer with an excellent opportunity to implement a greater value-add program by renovating units, in addition to the 95 recently upgraded by the seller. Ryan Epstein and Jennifer Ray of Walker & Dunlop Investment Sales represented the seller, Commerce Capital Partners, while Paul House and Larry Perez of Walker & Dunlop's Capital Markets group secured the financing for the buyer, Lone Star Capital Group. The teams worked to coordinate with several parties on behalf of their clients, including agencies and local government entities, to ensure compliance with the property's existing Land Use Restrictive Agreement (LURA), which is set to expire in May 2023. With steady population growth and employment growth, Lone Star Capital remains bullish on Houston multifamily, particularly workforce housing such as Parc at Champion Forest. We are excited to build from the seller's successful renovations at Parc at Champion Forest, which is well-poised to benefit from strong demand and limited new supply in the submarket. Parc's suburban setting coupled with its convenience to jobs and retail make it a dynamic investment for either short term value-add or longer-term yield." Rob Beardsley,Lone Star Capital's "With the extreme demand for affordable housing, Parc at Champions Forest will continue to service the community it is has for years as upgrades are completed," commented Mr. Epstein. "The community is also an excellent investment opportunity, given its high-visibility location in Houston, strong value-add potential, and LURA expiring in less than two years. Walker & Dunlop's Houston Multifamily Investment Sales Team exclusively listed the property for our client and helped to find the perfect buyer looking for long-term stability, future rent growth, and value appreciation." Parc at Champion Forest is a three-story multifamily community, comprised of 112 one-bedroom units, 108 two-bedroom units, and 12 three-bedroom units, situated along Bammel North Houston Road in the Champions area. Bammel North Houston Road, which experiences traffic of nearly 50,000 cars per day, allows residents to easily locate nearby retail, including Willowbrook Mall, Willow Center, North Oaks Shopping Center, and Kroger. Walker & Dunlop is a leader in multifamily property sales, having completed $19.3 billion in property sales volume in 2021 alone, up 214% from 2020. The firm was also the third largest provider of capital to the U.S. multifamily market, originating $49 billion in transactions and lending over $42 billion for multifamily properties in 2021. For information about multifamily properties available for sale via Walker & Dunlop's investment sales platform, visit our website. 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 1,400 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.

Read More

REAL ESTATE INVESTMENT

Nuveen Real Estate, Taconic Partners & North American Properties Acquire Ridge Hill Shopping Center

Nuveen | May 06, 2022

Nuveen Real Estate, Taconic Partners and North American Properties have acquired Ridge Hill for $220 million, a mixed-use lifestyle center in Yonkers, NY, with the intention of rebranding and transforming the 74-acre property into the preeminent outdoor lifestyle center serving the northern New York City metropolitan area. Renovation plans for the 1.2 million square foot complex are still in development, but the partners will look to incorporate state-of-the-art initiatives that enhance Ridge Hill's public spaces, street design and parking amenities. They will also draw on their combined network of retailers to attract top-tier local and NYC inspired food and beverage concepts, and national luxury apparel and boutique fitness providers, building on Ridge Hill's existing experiential features to create the leading lifestyle center in the tri-state region. We see this as an attractively priced asset in an evolving sector that fits within our well-diversified New York property focused real estate fund. The acquisition of Ridge Hill reflects a generational opportunity to re-position an already dominant lifestyle center that sits in the heart of one of the country's most affluent and densely populated regions." Nadir Settles, Managing Director at Nuveen and Head of the New York Property Fund "This unique retail asset will be a great addition to our Fund and we look forward to being a part of its successful redevelopment," said Chris Balestra, President and Chief Investment Officer at Taconic Partners. Lifestyle Centers Generating Strong Foot Traffic, Superior Rental Revenues As the retail economy continues to re-open, lifestyle centers may be one of today's most undervalued retail asset classes. Conceived as a modern-day interpretation of the shopping mall, lifestyle centers are characterized by outdoor settings and multiple uses, including office, multi-housing and hospitality in addition to upscale, national-chains and specialty retail. Research has shown the top 20 lifestyle centers in the highest population U.S. markets reported nearly 8.1 million visits in August 2021, compared with 1.3 million visits in April 2020. During 2021's second quarter, lifestyle centers drew 46 percent higher rents than regional malls and 11.5 percent higher rents than super regional malls.1 Developed in 2011, Ridge Hill features a wide variety of local and national retailers, including Apple, Banana Republic, Sephora, H&M, The Container Store, and Uniqlo. The center is also home to LEGOLAND® Discovery Center; a 12-screen National Amusements Showcase Cinema de Lux; Whole Foods; LA Fitness, and several full-service restaurants. Ridge Hill is located at Exit 6A off the New York State Thruway and at the Tuckahoe Road West exit from the Sprain Brook Parkway, making it easily accessible to all residents and visitors from Westchester and Putnam counties and the New York City metropolitan area. Growing Partnerships As a part of the partnership, North American Properties (NAP) will begin operations and repositioning of the property in May 2022. NAP is a boutique, full-service real estate owner/developer notable for projects such as Avalon in Alpharetta, GA; Birkdale Village in Charlotte, NC; Colony Square in Atlanta, GA; and, Newport on the Levee in Newport, KY. The partnership between Nuveen and NAP continues to grow, with Ridge Hill representing their third project together. The partners recently acquired the open-air lifestyle center The Forum on Peachtree Parkway in Peachtree Corners, GA. "Over the last decade, Ridge Hill has become a core component of the Yonkers community and we are thrilled to have the opportunity to enhance it by applying our high-touch, hospitality-driven approach toward management. We coined the term ExperienceMakers for our team years ago because making an impact on the lives of every guest we serve is in our DNA, and we can't wait to introduce ourselves to the market," said Tim Perry, Managing Partner at NAP. "We've already started working to enhance the public realm, bring technology forward in the guest and parking experience, as well as longer term unlocking the full development potential of the site. Helping to design and define this will require community engagement to determine what's missing, from a retail, as well as experiential, perspective." Nuveen Real Estate and Taconic Partners have collaborated since 2015, collectively investing more than $2 billion across over 2 million square feet in New York. The partners completed a $260 million fundraising round for their jointly sponsored value-add New York City Property Fund II in 2021. The acquisition of Ridge Hill reflects the partnership's first investment into value-add retail and an opportunity to diversify beyond its existing life science, office and industrial holdings. Together, Taconic Partners and Nuveen Real Estate will continue to capitalize on unique opportunities to reposition underutilized assets or build best-in-class products for the future. About Nuveen Real Estate Nuveen Real Estate is one of the largest investment managers in the world with $152 billion of assets under management. Managing a suite of funds and mandates, across both public and private investments, and spanning both debt and equity across diverse geographies and investment styles, we provide access to every aspect of real estate investing. With over 85 years of real estate investing experience and more than 725 employees located across 30 cities throughout the United States, Europe and Asia Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise. About Taconic Partners Since 1997, Taconic Partners has acquired, redeveloped and repositioned over 12 million square feet of commercial office and mixed-use space, as well as over 6,500 units of luxury and workforce housing. As a fully integrated real estate company with a keen eye for uncovering value, its diverse capabilities are evidenced by its multifaceted success with luxury properties, as well as adaptive reuse and urban revitalization projects. In New York City, Taconic is currently developing 619 West 54th Street—the Hudson Research Center, 125 West End Avenue, 817 Broadway, 312 West 43rd Street and Essex Crossing on the Lower East Side. The firm also manages various real estate funds on behalf of institutional and pension fund investors. About North American Properties Founded in 1954, North American Properties is a privately held, multi-regional real estate operating and development company that has acquired, developed and managed more than $7 billion of mixed-use, retail, multifamily and office properties across the United States. Rooted in its purpose-driven approach to development, North American Properties is creating great places that connect people to each other; cities to their souls; partners to opportunities; and individuals to experiences that move them. Headquartered in Cincinnati, with offices in Atlanta, Dallas and Fort Myers, Florida, the company has developed 22 million square feet of commercial space and 19,000 residential units in 15 states and 67 cities. In the past three years, North American Properties has launched 36 projects totaling $2.2 billion in total capitalization. In metro Atlanta, North American Properties led the turnaround of Atlantic Station and the ground up development of Avalon. Currently, the company's mixed-use portfolio includes Avalon in Alpharetta, Georgia; Avenue East Cobb in Marietta, Georgia; Birkdale Village in Huntersville, North Carolina; Colony Square in Midtown Atlanta; Newport on the Levee in Newport, Kentucky; Riverton in the New York metro area; and The Forum on Peachtree Parkway.

Read More

REAL ESTATE INVESTMENT

Bluerock Residential Growth REIT Stockholders Approve Acquisition by Affiliates of Blackstone Real Estate

Bluerock Residential Growth REIT | April 13, 2022

Bluerock Residential Growth REIT, Inc. announced that at a special meeting of stockholders held earlier, based on preliminary voting results, the Company's stockholders approved the proposed acquisition of the Company by affiliates of Blackstone Real Estate. The Acquisition will occur following the spin-off of the Company's single-family rental business through the taxable distribution to common stockholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust, Inc. Company common stockholders will receive $24.25 in cash per share of Company common stock in the Acquisition in addition to the BHM common stock that they will receive in the Spin-Off. The final voting results will be filed with the U.S. Securities and Exchange Commission (SEC) on a Form 8-K. We are pleased that our stockholders have approved this transaction and thank them for their continued support. Today's stockholder approval marks a key step in completing the transaction and delivering on the tremendous value it offers to our stockholders." Ramin Kamfar, Chairman and Chief Executive Officer of the Company The Acquisition and the Spin-Off currently are expected to close in the second quarter of 2022, and are subject to the completion of customary closing conditions. Upon the closing of the Acquisition, BRG's common stock and preferred stock will no longer be listed on any public market. About Bluerock Residential Growth REIT, Inc. Bluerock Residential Growth REIT, Inc. is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. The Company's objective is to generate value through off-market/relationship-based transactions and, at the asset level, through value-add improvements to properties and to operations. BRG has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.

Read More

REAL ESTATE INVESTMENT

ExchangeRight Fully Subscribes $124 Million 30-Property Net-Leased Portfolio

ExchangeRight | April 20, 2022

ExchangeRight, one of the nation's leaders in diversified real estate investments and strategies, has fully subscribed its $124 million Net-Leased Portfolio 50 offering, containing 30 net-leased properties covering 676,976 square feet across 17 states. The portfolio of single-tenant properties was structured to generate consistent investor distributions starting at an annualized rate of 6.12 percent. ExchangeRight has fully subscribed a $124 million 30-property net-leased portfolio focused on essential businesses. The fully occupied portfolio, offered at $124,160,000, includes properties tenanted by CVS Pharmacy, Dollar General, Dollar Tree, Family Dollar, First Midwest Bank, Fresenius Medical Care, Octapharma Plasma, Publix, Sherwin-Williams, Walgreens and WellMed. The offering launched with 10-year, fixed-rate, interest-only financing at 3.26 percent. We are grateful for those investors, advisors and representatives who have placed their trust in us to steward the wealth they have invested in Net-Leased Portfolio 50. We are intent on constructing diversified net-leased portfolios for DST investors designed to produce stable income through economic cycles, preserve investor wealth, defer investors' taxes and provide a strategic exit." Warren Thomas, a managing partner in ExchangeRight ExchangeRight and its affiliates' vertically integrated platform features over $4.8 billion in assets under management, diversified across over 1,050 properties, over 19 million square feet and throughout 44 states. More than 6,600 investors have trusted ExchangeRight to manage their capital. All of the company's current and past offerings have met or exceeded targeted cash flow distributions to investors since the company's founding. The past performance of ExchangeRight and its previous offerings does not guarantee future results. About ExchangeRight ExchangeRight pursues its passion to empower people to be secure, free and generous by providing REIT, fund and 1031 DST portfolios that target secure capital, stable income and strategic exits. The company strategically syndicates net-leased portfolios of assets backed primarily by investment-grade corporations that successfully operate in the necessity-based retail and healthcare industries, as well as diversified value-add portfolios of inline and outparcel retail spaces shadow-anchored by strong-performing grocery tenants.

Read More

Spotlight

Which Cities attract the most Real Estate Investment relative to their size? JLL’s Investment Intensity Index compares the volume of real estate investment over a three-year period relative to the economic size of a city. This provides a useful measure of a city’s real estate market liquidity, giving insights into which cities are punching above their weight in attracting real estate investment.

Resources