The Staggering Lineup of ABL, CRE, & Growth Cap Deals: Rabsky Group $485M, Dresser Utility $385M, AFS $10M

Good Morning Everyone

This week in Deals:

$1.64 billion in top 10 CRE deals
$1.04 billion in top 9 Growth Cap deals
$24 million in top 4 ABL deals

Top CRE Lenders
Madison Realty Capital, G4 Capital Partners, Valley National Bank, Affinius Capital, Wells Fargo Bank, Bank of Montreal, UBS AG, Morgan Stanley, Deutsche Bank, Centennial Bank, RBC Wealth Management, Israel Discount Bank of New York, Nuveen Green Capital

Top Growth Cap Lenders
Blue Owl Capital, Stonebriar Commercial Finance, Truist Bank, MUFG, Needham Bank, CIBC Bank of Innovation, Mountain Ridge Capital, UMB Capital Finance, Trinity Capital

Top ABL Lenders
Austin Financial Services, Celtic Capital, eCapital, InterNex Capital

This Week’s Video
Top Private Credit Deals: https://youtu.be/5FRrLzj8veo
Financial Fiascos: https://youtube.com/shorts/VT8OkZvaLTA

🌆Top Weekly CRE Deals

• Madison Realty Capital loans $485M to recapitalize 625 Fulton Street Read

• G4 Capital Partners provides $228M in construction loans on Gowanus apartments Read

• Valley National Bank provides $210M construction loan for Harlem apartment tower Read

• Affinius Capital makes $160M refi for construction, stabilization for 101 Fleet Place Read

• Diversified Healthcare Trust Closes $120M Mortgage Loan Read

• Smith Hill Capital, and Bain Capital announce $111M financing for four-property hotel portfolio Read

• Morgan Stanley and Deutsche Bank provide $100M refi for Madison Avenue office Read

• Fuse lands $84M construction loan for resi project in Fort Lauderdale Read

• RBC supplies $72.24M refi on Nebraska mixed-use project Read

• BGFP sources $72M loan for cold storage development Read

Summary

The commercial real estate financing market saw a flurry of activity last week, with numerous substantial deals closing across various property types and locations. Leading the charge, the Rabsky Group grabbed attention twice. They first secured a hefty $485 million loan from Madison Realty Capital to recapitalize their nearly complete 1,098-unit multifamily development at 625 Fulton Street in Downtown Brooklyn, underscoring the robust demand for large-scale, urban multifamily projects. Not stopping there, Rabsky also landed a $228 million loan from G4 Capital Partners for a 604-unit residential project spread across two parcels in Gowanus, Brooklyn, signaling a strong appetite for multifamily development in the area.

Other notable deals included a $160 million loan from Affinius Capital to The Jay Group for refinancing 101 Fleet Place, a 294-unit luxury multifamily property in Downtown Brooklyn, and a $120 million mortgage loan closed by Diversified Healthcare Trust, secured by eight medical office and life science properties across seven states.

Valley National Bank stood out, providing significant financing for two deals: a $210 million package to Artimus in West Harlem and a $72 million loan to BGFP International in Jacksonville, FL.

Construction financing led the week’s activities, with six of the top ten deals involving new developments, primarily in New York and Florida MSAs. These transactions included multifamily, mixed-use, and cold storage facilities, highlighting the persistent demand for new construction across various sectors. New York City, especially Brooklyn and Manhattan, saw the highest lending activity, with significant deals closing in Downtown Brooklyn, Gowanus, West Harlem, and Midtown Manhattan. This activity underscores the ongoing demand for strategically located, mixed-income housing and commercial properties in prime urban areas.

Key Insights

• Multifamily developments with a mix of market-rate and affordable housing units remain attractive to lenders, particularly in high-demand urban locations like New York City.

• The healthcare real estate sector, including medical offices and life science properties, continues demonstrating resilience and attracting investor interest.

Loan Structures
Recent trends indicate a growing preference among borrowers for long-term loans of seven to ten years, offering stability in an unpredictable economic landscape. LTV ratios typically hover between 50% and 70%, balancing risk and reward for lenders and borrowers. Non-recourse provisions, serving as a safety net for borrowers, are becoming more common. Additionally, interest-only periods, providing a significant boost for borrowers, were a notable feature in last week’s deals. This combination of factors underscores a strategic approach to debt, reflecting the cautious optimism in today’s market.


Winners:

• Real estate developers and investors with a focus on multifamily and mixed-use projects in prime urban locations

• CRE investment bankers and advisors who specialize in the multifamily and healthcare real estate sectors

• Private debt funds and alternative lenders

• Banks with a strong focus on the multifamily and healthcare real estate sectors
  

Losers:

• Real estate appraisers and valuation professionals

• Commercial real estate brokers and sales and leasing agents who focus on office and retail properties

• CMBS lenders and traditional banks with heavy exposure to office and retail properties

• Smaller regional banks and credit unions with limited experience in commercial real estate lending

💡 Top Markets/Opportunities:

CRE Lenders Focus:
1) Multifamily developments with a mix of market-rate and affordable housing units
2) Healthcare-related properties
3) Cold storage facilities
4) Mixed-use developments in high-growth markets

CRE Developers Focus:
1) Mixed-income multifamily projects in high-demand urban locations
2) Mixed-use developments in emerging markets
3) Development of healthcare-related properties

CRE Investors Focus:
1) Investment opportunities in the hospitality sector
2) Mixed-use developments in high-growth markets
3) Cold storage facilities

CRE Brokers Focus:
1) Experienced multifamily developers
2) Lenders active in the healthcare real estate sector
3) Staying informed about emerging trends in the cold storage sector and connecting with developers in that space

💸Top Weekly Growth Capital Deals

• Dresser Utility Solutions secures $335M credit facility from Blue Owl Capital Inc. Read

• Stonebriar Commercial Finance commits $300M capital to Accelerated Mobile Power for mobile power generation asset acquisition Read

• Truist Bank leads credit facility upsize by $175M for PennantPark Floating Rate Capital Read

• Lendbuzz and MUFG announce $100M warehouse facility Read

• XS Financial closes amended $70M secured credit facility Read

• SpyCloud Receives $35M in Growth Financing Read

• Mountain Ridge Capital provides a $30.8M credit facility to wood products distribution company Read

• UMB Capital Finance provides a $22.5M credit facility for the recapitalization of a food processor in Texas Read

• Trinity Capital provides $15M in growth capital to restor3d Read

Top Weekly ABL Deals

• AFS provides $10M ABL facility to equipment manufacturer and distributor Read

• Celtic Capital Corporation provides $5.03M financing for an oil and gas extraction services company Read

• eCapital funds $5M ABL revolver for fiberglass company Read

• InterNex Capital announces $4M facility to IT solution and staffing company Read

Summary
Last week, the lending market buzzed with significant financing deals across various sectors, showcasing its robust activity. Dresser Utility Solutions, a key player in global infrastructure technology for the energy transition, secured a substantial $335 million credit facility from Blue Owl Capital's Credit platform. This funding will support Dresser’s capital needs, strategic acquisitions, and general corporate purposes. Stonebriar also made headlines with a $300 million capital commitment to Accelerated Mobile Power (AMP), facilitating the acquisition of advanced low-emissions mobile power generation assets. This partnership highlights Stonebriar's commitment to fostering economic growth and technological innovation in the energy sector. Other notable deals included PennantPark Floating Rate Capital upsizing its credit facility to $611 million, Lendbuzz closing a $100 million credit facility with MUFG to boost loan origination growth, and XS Financial amending and increasing its line of credit with Needham Bank to $70 million to expand its portfolio of equipment leases in the cannabis industry.

The week's prominent lending activity centered around financing growth initiatives and strategic acquisitions. Borrowers like Dresser Utility Solutions, Accelerated Mobile Power, and Lendbuzz secured credit facilities to fuel expansion plans, fund acquisitions, and drive industry innovation. Blue Owl Capital's Credit platform stood out as a top lender, providing Dresser Utility Solutions with a significant $335 million credit facility. Last week, lenders focused on borrowers in the energy transition, specialty finance, and technology sectors, particularly in the south and southeast regions of the country.

Key Insights

• Lenders are increasingly supporting companies focused on energy transition and clean power solutions.

• Specialty finance companies are successfully upsizing their credit facilities to expand their lending capabilities and serve niche markets like the cannabis industry.

• Fintech companies, like Lendbuzz, are attracting significant funding to support their AI-powered lending platforms, which aim to provide better access to credit for underserved borrowers.
  

Loan Structures
The most common loan tenors ranged from 3 to 5 years, with some credit facilities extending up to 7 years, such as XS Financial's amended line of credit, which expires in June 2027. LTV ratios varied by industry and collateral type, with asset-based loans typically offering higher LTVs than cash-flow-based loans. Borrowers sought flexible terms and minimal operational restrictions, reflecting a trend towards more relaxed covenants.

Winners:

• Energy Transition and Clean Power Companies

• Innovative technology companies focused on AI and machine learning

• Asset-based lenders

• Specialty finance companies catering to specific industries or borrower types

Losers:

• Traditional brick-and-mortar retailers

• Small businesses in the hospitality and tourism sectors, such as restaurants, hotels, and travel agencies

• Traditional banks with conservative lending practices

• Lenders heavily exposed to industries that have been significantly impacted by the COVID-19 pandemic, such as hospitality, tourism, and brick-and-mortar retail

💡 Top Markets/Opportunities:
Asset-Based/Growth Cap Lenders Focus 
1) Companies in the energy transition sector
2) Businesses in the mobile power generation industry
3) Specialty finance companies
4) The cannabis industry

Family Offices Focus
1) Cybersecurity firms
2) The commercial kitchen equipment manufacturing and distribution sector
3) Ancillary industries supporting the energy transition, such as manufacturers of components for clean energy infrastructure

Private Equity Firms Focus
1) Fiberglass media industry
2) The IT solutions sector, particularly companies focused on cloud applications and platform services
3) Ancillary industries supporting the oil and gas sector, such as extraction services

Brokers Focus
1) connecting foodservice equipment manufacturers and distributors with appropriate lending solutions
2) Companies in the oil and gas extraction services sector
3) The IT solutions industry, especially Tier 1 companies

New Lender Programs

• HUD launches Manufactured Home Community Loan Program Read

• SBA to launch a newly structured line of credit for small businesses Read
  
  
  😲 Didn’t see that one coming

• Common Living goes belly up and files for bankruptcy Read

• CalAmp files bankruptcy to complete lender-backed restructuring Read

• APF Properties faces potential foreclosure after New York office loan default Read

• LaVie Care Centers files for Chapter 11 bankruptcy protection Read

• New England solar installer iSun files for Chapter 11 bankruptcy Read

• Rubio’s Coastal Grill files for Chapter 11 bankruptcy protection Read

• Byju's lenders kick off bankruptcy proceedings in the US over a $1.2B term loan Read

• Fisker Inc. bankruptcy looms as latest SEC filing shows it has defaulted on a $3.5M loan Read

• MetLife is foreclosing on a Starwood and Artisan Ventures-owned El Segundo office building Read

• Maryland’s Station Square offices set for foreclosure sale Read

• LuxUrban faces $83M lawsuit from REIT as more landlords try to evict 'WeWork for Hotels' Read

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