🏭 JLL and PGIM's Massive $869M CRE loan

Good Morning TIM Enthusiasts

Last week was a rollercoaster in the CRE, ABL, and Growth Capital markets, illustrating a financial landscape at an inflection point. Leading the CRE pack was JLL advising on a combined $869M industrial refinance loan ($454M with Northwestern Mutual and $415M with PGIM Real Estate). On the ABL & Growth Capital side, BB Energy stole the limelight with a $600M credit facility via ING Capital. In the lender arena, Nomura and ING were key players, backing Renew Financial's $245M PACE project. But it wasn’t all about grand slams; looming shadows like rising defaults in auto and office CRE loans signal caution. So, who's conquering the peaks and navigating the valleys in this complex financial tapestry? Let’s dissect the frontrunners, the cautionary tales, and the market disruptors... all unpacked in just 4 minutes!.…PLUS, a Texas CRE Bridge lender…in just 4 minutes!

Let’s get into it.

Top Weekly CRE Deals

• JLL locks in $454M from Northwestern Mutual for bulk industrial refi Read

• PGIM Real Estate fuels US industrial scene with $415 million Read

• PGIM RE sets up $259M Fannie Mae lifeline for West Coast multifamily Read

• BBVA’s bank group offers $252 million for OPDEnergy's US solar ops Read

• MF1 Capital rejuvenates LA apartment complex with $163 million refi Read

• PGIM Real Estate drops $115 million on West LA Apartment Complex Read

• Skokie Apartment Developers Clinch $100 million from Kennedy Wilson Read

• Lument seals $78.8 million refi for Kentucky Multifamily Read

• Blackstone fronts $78 million for Times Square Hotel acquisition Read

• Bank OZK fuels $45 million into Standard Residences Project in Miami Read
  
  Extra, Extra

• PGIM Real Estate $43M Construction loan Read

• European Bank $40M Refi Read

• M&T Bank $30M loan Read

• Life Insurance Company $28M Refi loan Read

• Berkadia’s Freddie Mac $29M loan Read

• Citigroup $22M loan Read

• Lument $20.9M acquisition loan Read

Summary
Last week's CRE financing landscape was dynamic, led by a colossal $869M industrial portfolio across 13 markets, structured by JLL for a client with loans with Northwestern Mutual. Following closely was another $415M loan (also packaged by JLL) from PGIM RE, targeted at 11 industrial properties spanning five states. The week also saw a $252M construction finance package, orchestrated by BBVA, Intesa SanPaolo, and MUFG, designated for two solar installations in Louisiana and West Virginia. Overall, last week saw a pivot from coastal deals to a nationwide yield search, driven by high coastal asset prices and the allure of risk-adjusted returns in secondary markets. The market is bifurcating, favoring large, defensive deals while smaller loans encounter resistance. Capital is concentrating on industrial and renewable mega-projects, signaling strength in specific sectors but broader caution as deal volume and diversity wane.

▲ Winners:
◦ Experienced real estate developers in the industrial and renewable sectors are capitalizing on strong lender demand, exemplified by a recent $252M financing package for new solar installations.
◦ PGIM's aggressive deployment of over $1B across diverse transactions in preferred sectors like multifamily and industrial serves as a playbook for other lenders to target deals in high-growth segments proactively

▼ Losers:
◦ Retail and office developers face tough headwinds as lenders are shying away from property types seen as relatively higher risk in the current environment
◦ Foreign banks face currency exchange headwinds on US deals

Top Weekly ABL and Growth Capital Deals

• BB Energy enlarges $600M credit facility from ING Capital consortium Read

• First Citizens banks $60M credit for California battery storage project Read

• Clarus Capital ramps up $40M lease for multi-sponsor logistics provider Read

• MidCap crafts $11.2M asset-based facility for luxury water producer Read

• Austin Financial wraps up $8MM ABL for PE-owned metal door maker Read

• King Trade Capital arranges $3MM PO finance line Read

• First Business Bank delivers $1M factoring for software development firm Read
  

Insight Summary
Last week's ABL and capital markets slowed even when sealing key deals. BB Energy led with a $600M credit line from ING Capital for its North and South America inventory, showing lender trust in energy. First Citizens funded a $60M battery project in California, reflecting interest in renewables. Clarus Capital expanded a $40M lease line for logistics, emphasizing stable client relations. These deals highlight interest in the burgeoning energy sectors. Last week's flagship transactions and fintech involvement signal capital liquidity and innovation. Market strength appears concentrated in established industry leaders, validated clean energy ventures, and disruptive models. However, mid-sized firms may encounter tougher financing conditions than two weeks ago.

▲ Winners:
◦ The Clarus Capital deal indicates that logistics firms can secure facility upsizing through strategic locations and proven models.
◦ Large banks gain by backing creditworthy entities like BB Energy and quality renewables like First Citizens' battery project.

▼ Losers:
◦ Smaller fossil fuel firms struggle to secure favorable financing terms.
◦ Old-guard banks without innovative capabilities and clinging to legacy credit models risk falling behind and losing market share.

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Lenders

• Nomura, ING, LL Funds funnel $245 million to Renew Financial Read

• Castlelake shells out $200 million in private financing to Oportun Read

• Jefferies sets up warehousing credit for Momnt and Saluda JV Read

• Spring Oaks Capital wraps new credit facility from Värde Partners group Read

• Legacy Corporate nabs $100 million from Wells Fargo Read

• Crossroads partners with TruckTractorTrailer for financial referral Read

• Bain and Smith Hill unveil hospitality financing solutions Read

Insight Summary
Last week marked significant credit facility moves, signaling resilience in CRE and specialty lending amid economic volatility. In CA, Renew Financial clinched $245M from Nomura and ING group for residential PACE expansion. In TX, Oportun joined Castlelake for a $200M personal loan facility. GA-based Momnt secured $150M from Jefferies for loan acquisitions. Spring Oaks in TX finalized a $150M facility with Värde Partners and UBS O'Connor for debt purchasing. NY's Legacy Corporate Lending got $100M from Wells Fargo for mid-market ABL.

▲ Winners:
◦ Homeowners should research local PACE and home improvement loan options to capitalize on available funding.
◦ Credit hedge funds should leverage market volatility to deploy flexible capital in projects and sectors traditional lenders avoid.

▼ Losers:
◦ Small retailers must manage inventories and cash-flow carefully due to fluctuating consumer demand and supply chain disruptions.
◦ Hard money lenders should uphold diligent underwriting and portfolio monitoring to mitigate rising credit risks.

Market Beat & Insights
Last week saw a spike in CRE, ABL, and Growth Capital deals, led by key states like Illinois, California, and Texas. Arizona stood out for major construction projects, including American Battery's 2-million-square-foot facility in Tucson. Regarding property sales and acquisitions, Texas, Illinois, and California were frontrunners, exemplified by the acquisition of Dallas' 1.2-million-square-foot Plaza of Americas towers. Both Chicago and Dallas solidified their roles as metropolitan hubs for CRE transactions.

Key Insights

⮞ Rising delinquencies in auto and office CRE loans signal growing borrower financial strain, increasing credit risks.
⮞ High student housing rents may strain affordability, posing a risk to landlords dependent on rental income.
⮞ Outdated office spaces must pivot to mixed-use and focus on amenities to remain viable as tenants move to suburbs or face increased loan risks.

International

• Trafigura seals $2.7B revolver/term loan from EXIM Bank of China group Read

• Azora lands €640m for Spanish rental platform Nestar Read

• Cheyne Capital and Bain finalize €250m senior loan Read

• Terravest unveils new credit facility Read

• Hugo Boss pockets 175M promissory note loan from DZ Bank AG Read

• Twinco raises $53M for supply chain financing from BBVA Read

• Linear Group secures €20.7m from Maslow for resi project Read

😲 Didn’t see that one coming

• Lawsuit targets sale of once-$1.5B Park Hotels Portfolio Read

• BlockFi rebounds from bankruptcy, promises payouts by 2024 Read

• Brooklyn's Kingswood Center floats $66M loan on the market Read

• Brookfield nabs 30-day extension on $130M Stonestown Mall loan Read

• Thistle Creek Partners eyes foreclosure on Houston's Apartments Read

• Fed slaps Metropolitan Commercial Bank with $14.5M fine Read

• APF staggers with one delinquent office loan, two more teetering Read

🤵 LENDER LOUNGE

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

Time to Close: 1-3 weeks
Paperwork Required for LOI: PFS, Survey, Site plan, Pro Forma, Budget, The ask and property address
Min to Max Loan: $1M to $20M
Sweet Spot: $3M – $7M
Min FICO Score: N/A
Interest Range: 12% - 15%
Loan-To-Value: 60%
Origination Fee: 2 - 3%
Due-Diligence Fee: $12K-$15K depending on the cost of third-party reports
Collateral Requirements: Land, Retail, Industrial
Repayment Terms: 12-24 months
Pre-Payment Penalty: 6-month
Extension of Loan: Case-by-case
Geography: Only TX, CO, Southeastern US
Refinance into a longer-term loan: No 

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