Upwards of $75 Billion is earmarked for Build for Rent, how to access capital and avoid disconnect

When it comes to Build for Rent Financing, its likely that for any development of a BFR community through the project lifecycle from acquisition through stabilization four different loans will have to be sourced and executed. The biggest challenge for developers in this space is replacing the Land + infrastructure (horizontal) loan with the vertical. No one likes starting a development project with financing lined up for only the first portion of the project. What happens if the market shifts during your 18 months of horizontal and then your vertical lender doesn’t like your market, or their total loan dollars for your project drop by 10% and the lender expects you to make up that 10% difference with a surprise cash infusion? 

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Paul Cronin joins LDCRE as a Managing Partner and Head of Capital Markets

Paul Cronin: LDCRE Head of Capital Markets

LDCRE is excited to welcome Paul Cronin to join its growing Commercial Real Estate MarketPlace. “Paul’s experience and thought process are a unique blend of entrepreneurial with formal lending experience from some of the top banks. It’s hard to find people that have that blend they are either one or the other, said Brendan Hotchkiss LDCRE CEO.

LDCRE streamlines commercial real estate acquisitions and financing via its MarketPlace which hosts over $1 Trillion in “for sale” Commercial Real Estate properties. Over 7,000 brokerage firms submit their listings to LDCRE.

Paul will head LDCRE’s Capital Markets team, which manages lender relationships, identifying new credit/investment opportunities, and transaction management on all financing engagements.

Most recently Paul was Executive Vice President and Head of Asset Based Lending & Restructuring at Santander Bank. Paul has held senior positions at Key Bank, First Niagara Financial Group, HSBC Bank, RBS Citizens, ABN AMRO Bank/LaSalle Bank, KPMG and EMO Oil. 

Education: Paul has a Masters in Finance from University College Dublin, D.P.A. Accounting & Finance from University College Dublin, and B.Comm, Finance from University College Dublin.

RealNex adds LDCRE as a Channel Syndication Partner

LDCRE is pleased to announce the adding of another great syndication partner to grow our Commercial Real Estate MarketPlace. RealNex is a highly regarded CRM and MarketPlace solution with a great reputation. This partnership allows RealNex’s clients to increase the market reach on their listings by syndicating their listings in RealNex to LDCRE and reaching LDCRE Investments’ investors.

LDCRE Investments functions as an extension of LDCRE, working 24/7 on to promote opportunities listed in LDCRE. Our registered investors are notified immediately when new listings are added that match their investment specifications. This brings more product to LDCRE Investments’ investor base.

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100% Construction Financing for Net Lease? Yes, Really!

We often find ourselves complacent with “working” results and apply the why fix it, if its not too broken attitude. This applies to the landscaper, email services, car insurance, and even the barber who gives us bad hair cuts, yet we continue to go to him out of habit. But a capital partner? Having the right commercial real estate capital partner(s) can not only deliver more returns into your pocket, it can grow your business significantly.

We recently caught up with the a number of funds we work with to talk through their 2020 lending/investment strike zones. A handful of funds are offering 100% construction financing for net lease developments. If you are looking for STNL construction financing, or Net Lease construction financing and want to take the leverage to 100%, there are well priced financing options tailor made for STNL and Net Lease developments.

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Advice for New Agents in Commercial Real Estate

Contributing Author: Anthony “Tony” Catalano

So, you passed the real estate exam and you were able to find a spot on the team of a local commercial real estate (CRE) firm. 

What’s next? How do you really get started in the business? 

Just 18 months ago this was my challenge. And while it’s not science there are some things that you can do to make your transition as effective and efficient as possible.  Most of these pointers will seem like common sense, but actually practicing them can be a bit harder, so here goes…

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University of Wisconsin: Student Housing Report 2018-19

Contributing Author: Sean Lyons

An in-depth analysis of the private student housing market at University of Wisconsin conducted by Triad Real Estate Partners. Triad Real Estate Partners concentrates in private student housing and multi-family real estate brokerage. Triad Real Estate Partners’ research team compiles in-depth student housing market research reports on leading Universities in the United States.

Total Enrollment: UP 1.35%

Total enrollment at the University of Wisconsin’s flagship campus in Madison for the fall of 2018 clocked in at 44,411 – breaking the previous school-record set last fall by 591 students. In general, enrollment growth at UW-Madison has been slow but steady, increasing a total of 741 students between 2010 and 2016. By contrast, over the past two academic years (AY) enrollment has grown by 1,075 total students.

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Counseling Clients on a Commercial Real Estate Exit Strategy

Contributing Author: James “Jay” Verro, CCIM

The longer that you’re in the commercial real estate (CRE) industry, the probability increases that you’ll have clients or will be contacted by prospective clients who will want / need your expertise on their CRE exit strategy. To best advise your clients, you’ll need extensive knowledge on the options available while managing to “Staying in your Lane” with regards to your licensing. Simply put, refer your clients to their attorney for legal advice, their CPA for tax implications, and so on.

You’ve been asked to sell an income producing property by a property owner or client. Aside from determining market value, gathering the necessary due diligence information, and other commercial real estate related tasks, an experienced CRE professional will have a discussion with the seller about their post-sale plans. 

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Drug Store Sector Update

Contributing Author: Sean O’Shea

Certainly for the last decade or longer, the drugstore sector has been viewed by many single tenant investors, as a bond-like investment, in the sense that they had investment grade ratings (this has changed over the last decade, in part, due to the additional debt that has been incurred for various mergers in the sector); and predictable, stable income streams that were afforded due to absolute NNN lease structure of most drugstore tenants’ leases.  

There has been some concern, over the years, regarding whether these assets afford an inflation hedge, since in the case of Walgreens-Boot Alliance, that the rental income was stabilized or ‘flat’ for almost 75 years.  The CVS Health and Rite Aid lease structure can vary; but do afford some scheduled increases.

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Staying in your Lane

Contributing Author: Cory Tyksinski

Most people have heard or even used the expression “Stay in Your Lane,” and almost everyone would apply it to when they are behind the wheel of an automobile. But it can have significant meaning in the world of Commercial Real Estate (CRE). We live in an age of technology where the internet and social media have increased the amount of information available and the speed at which someone can obtain information about almost anything, including commercial properties.  

This access has certainly benefitted the general public as would-be buyers and tenants can peruse the various websites anonymously to search for the right property that meets their needs, and only after identifying such property, will they engage the assistance of an owner or listing broker. However, this accessibility to information has also “allowed” or even encouraged real estate brokers to venture into areas where they may not have comprehensive and thorough knowledge.

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Spring Value Added Service to Clients

Contributing Author: Jay Verro, CCIM

As most of the country is finally digging out from a long and snowy winter, it’s a great time for commercial real estate (CRE) professionals to add value to their existing client base. What is the one thing that we hear so often from our colleagues and clients? Answer – “there’s not enough hours in a day,” especially with continual interruptions thanks to the growth of mobile technology.

As their trusted advisor, you can lessen their load while making you more valuable to them by doing one easy, yet often over-looked task. Each spring, I make the time to visit each of my landlord and seller client properties for the sole purpose of looking at them with a fresh set of eyes, just as a prospective tenant or buyer would do on their first time into the property. CRE professionals, landlords and sellers often get tunnel vision after pulling into their property day after day, making it too easy to overlook deferred maintenance items.

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