🌀 Market Whirlwind

Good Afternoon TIM subscribers, this week we explore:

The rising CMBS delinquency rate, the latest in the crypto, banking, Med-tech sectors, unexpected real estate challenges in San Francisco, some quick hits from the financial world, opportunities and how you can benefit. PLUS Lenders, prizes, and a new building…in just 5 minutes!

Let’s dive in.

MARKET RATES

❤️/💔 MARKET HEARTBEATS/BREAKS

CRYPTO
Coinbase has launched a lending service for institutional investors, capitalizing on the downturn of competitors like BlockFi and Celsius, and has already secured $57 million from investors. This move comes after a previous attempt in 2021.

Opportunity
⮞ Developers and brokers should consider familiarizing themselves with crypto lending platforms and the terms they offer. These platforms can significantly give them a competitive edge if they can leverage crypto-backed loans for their projects.
⮞ M&A professionals might see an uptick in consolidation activities in the crypto space and should be prepared to advise on potential mergers or acquisitions in this sector.


BANKING
Goldman Sachs invests $100 million to empower rural businesses, allocating funds to address the capital and support challenges rural enterprises face, which are vital to their communities.

Opportunity
⮞ Rural business owners should explore partnerships with initiatives like Goldman Sachs 10,000 Small Businesses, committing $100 million to support rural enterprises.
⮞ Real estate investors and developers can focus on creating affordable housing projects in these rural areas. Additionally, partnering with healthcare providers can address the healthcare gap, making rural areas more attractive for businesses and residents.

🤝 TEAM UP

CRE
Worthe Real Estate Group and Stockbridge have acquired the Warner Bros. Ranch in Burbank, California, for $175 million, with plans for redevelopment into a state-of-the-art facility thanks to a $480 million from Athene Annuity & Life Company.

Opportunity
⮞ Developers should scout for underutilized properties in Burbank and nearby areas, considering the potential for mixed-use developments that cater to the entertainment industry's needs.
⮞ M&A professionals should identify other entertainment entities with significant real estate holdings and propose similar lease-back strategies, allowing them to free up capital while retaining operational presence.

💰 MORE MONEY, LESS PROBLEMS?

EQUIPMENT
Capteris LLC has secured a $350MM credit facility in collaboration with Truist Bank and Bank of America, N.A., aiming to enhance their equipment finance offerings to midmarket companies and large corporate sectors.

Opportunity
⮞ Business Owners (especially those in industries requiring large equipment like construction, manufacturing, and logistics) should reach out to Capteris for potential equipment financing solutions, which might offer better terms or flexibility than traditional avenues.
⮞ Brokers and developers should stay informed about businesses benefiting from such financing, as it could indicate upcoming projects or expansions, creating opportunities for partnerships or deals.


LITIGATION FINANCE
Bryant Park Capital has brokered a $70 million term loan for RapidFunds, a firm specializing in expediting cash flow for U.S. plaintiff law firms.

Opportunity
⮞ Law firms should consider partnering with litigation finance companies to improve their cash flow, while legal tech startups might explore developing platforms that facilitate such financial transactions or partnerships.
⮞ M&A professionals and investment bankers should keep an eye on the litigation finance sector for potential acquisition targets or partnerships and consider diversifying their portfolios to include such niche finance companies

DEAL-ICIOU💲

MANUFACTURING
Trinseo, a top-tier specialty material solutions provider, has clinched a $1.077 billion term loan backed by giants like Angelo, Gordon & Co., L.P., and Oaktree Capital Management to refinance upcoming debts and reinforces their influential position in the polymer industry.

Opportunity
⮞ Manufacturers in this space should consider reviewing their financial structures, exploring refinancing options or strategic partnerships to bolster their market position, and taking advantage of investor confidence in the sector.
⮞ Investment bankers should identify other potential players in the specialty materials sector that might benefit from refinancing or restructuring, offering tailored financial solutions to enhance their market position and long-term growth prospects.


CRE
Jorge M. Pérez's Related Group is advancing its luxury condo project, Casamar Residences, in Pompano Beach, Fla., with a $158.9 million loan, targeting completion by 2025 and already boasting $293 million in sales.

Opportunity
⮞ Developers and brokers should focus on pre-sales and partnerships with renowned designers to enhance the appeal of their projects. Leveraging a solid track record, as The Related Group did with their previous Solemar project, can instill confidence in potential buyers.
⮞ M&A professionals and investment bankers should consider broadening their network to include international banks and financial institutions, presenting them with lucrative U.S. real estate ventures backed by strong pre-sales or a proven track record.


MED-TECH
Senseonics, known for its innovative glucose monitoring systems, has secured a $50 million loan from Hercules Capital, enhancing its financial flexibility as it aims to expand its Eversense brand globally.

Opportunity
⮞ Medical tech entrepreneurs should focus on showcasing the uniqueness and efficacy of their solutions to attract similar financing.
⮞ Real estate investors might consider investing in properties that can house such med-tech startups or facilities, anticipating a surge in demand.
⮞ M&A professionals and investment bankers should consider proposing similar milestone-driven financing structures for their clients, especially those in the med-tech and biotech sectors, to attract investors and provide companies with the capital they need to grow.

😲 DIDN’T SEE THAT ONE COMING

CRE
Bridgeton Holdings has halted payments on its $45M loan for its San Francisco property at 995 Market St., especially after WeWork, which occupied 75% of the space, left in August 2021. This situation underscores the risks of relying on major tenants and emphasizes the challenges in the commercial real estate market, especially in cities like San Francisco.

Opportunity:
⮞ Developers and brokers should prioritize diversifying tenant portfolios to reduce dependency on a single major tenant. They should also consider including clauses in leases that protect against sudden large-scale vacancies or explore insurance options that cover such scenarios.
⮞ Investors should look for properties affected by WeWork's downsizing, as they might be acquired at a lower cost. M&A professionals can assist in identifying and facilitating such distressed asset acquisitions.

🥊 QUICK HITS

NXT Capital facilitated the merger of Chef Merito and La Fiesta with a credit facility backed by PNC Riverarch (more).

Following Jimmy Buffett's passing, Margaritaville Hollywood Beach Resort secured a $140 million refinancing from Wells Fargo. (more)

🤵 LENDER LOUNGE

Looking to close your next CRE deal? This week’s bridge lender could help:

Time to Close: 2-3 weeks closing from term sheet signing
Paperwork Required for LOI: Property Address & Rent Roll
Min to Max Loan: $1M-$50M (sweet spot is $3M to $15M)
Min FICO Score: None
Interest Range: 9.75% to 12%
Loan-To-Value: Up to 70%
Origination Fee: 2 pts
DSCR: None
Due-Diligence Fee: $5K to $20K based on the size of the loan
Collateral Requirements: Multifamily, Mixed-use, Land, Industrial, Condo, Office
Repayment Terms: Interest-only for one year
Pre-Payment Penalty: 6-month minimum on 12-month loan
Extension of loan: Yes
Geography: New York, North Jersey, South Florida, Dallas, Houston
Refinance into a longer-term loan: No

Interested in diving deeper with this lender?
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🏡 SHOW YOUR LISTING 

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Submit your best local listing, and if selected, it will be featured in next week's edition of the "Time is Money" newsletter.

The realtor with the winning listing will also be entered into our monthly prize drawing.

🏆 Grand Prizes: 
1️⃣ 4-night stay at a Las Vegas Resort/Casino.
2️⃣ Airfare and 2-night stay hotel for 2 in any 23 locations in the US

Two more weeks are left before the winner will be announced on October 5, 2023.

Submit your listing and let the TIM community help secure a buyer!

TIMES UP

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