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The latest investment & commercial real estate news specially curated by Partners Capital
May 11, 2017
Bobby Khorshidi Featured in National Real Estate Investor Article
The following was originally posted on nreionline.com.
May 10, 2017 | Beth Mattson-Teig
Lower rates fuel demand
Bridge loans are typically priced off LIBOR. So the recent Fed rate hikes on the federal funds rate have not had an impact on bridge lending rates. Most of the bridge loans Grandbridge arranges are for non-bank, non-recourse institutional deals on core, core-plus and value-add projects with pricing ranging from 250 to 700 basis points over LIBOR. The rate varies depending on the leverage, overall structure of the deal and strength of the sponsor and asset. A very complicated deal or a difficult asset to finance generally fall on the higher end of that spectrum, notes Tapie.
The lower rates are fueling more borrower interest in obtaining bridge loans. Yet rates can only go so low. Rather than competing solely on rate, some bridge lenders are finding that they have to work harder to win deals. Some firms are widening their target markets and doing deals in smaller metros and on different property types, or stepping outside of standard underwriting protocols.
“There are more players entering the market than exiting, and you are finding lenders trying to differentiate themselves to fend off some of the competition,” says Bobby Khorshidi, president and principal of Archway Fund, a non-bank bridge lender that focuses primarily on the Western U.S. with bridge loans ranging between $2 million and $20 million.
Lenders look for an edge
Some lenders are differentiating themselves by focusing on a niche product or property type, and in some cases they are relaxing underwriting standards to gain a competitive edge. For example, some bridge lenders are raising loan-to-value ratios (LTVs) to win deals or stretching on rent and pro-forma assumptions, says Khorshidi.
Lenders are also going into secondary and tertiary markets where there is less competition and rates are higher. “We are trying to stay true to our knitting and not chase deals in markets where we don’t feel comfortable,” says Snyder. That being said, Meta West did open its Chicago office two years ago and is now more actively looking at deals in the Midwest, especially with sponsors that the firm has worked with in the past. The company also has offices in Los Angeles and New York City.
Archway Fund has been doing bridge lending since 2009. One of the ways it has been able to maintain its lending volume amid competitive pressures is by leveraging existing relationships. “Relationships are of the utmost importance in our space,” says Khorshidi. If there are five buyers lined up for a deal, buyers are trying to distinguish themselves by saying they can move quickly on closing the transaction. They want to sit across the table from a lender and talk to the decision maker, and not be caught up in red tape and bureaucracy that can slow the underwriting process, he says.
To read the full article, please click here.
Partners Capital’s New Acquisition of The Village at Centennial Springs Featured in Las Vegas Review-Journal
A mixed-use property with retail, offices and housing, The Village was launched during the bubble years last decade. And like countless other projects from that era, it ran into steep problems when the economy crashed. Investors now are betting that its darker days are behind it. Los Angeles real estate firms Partners Capital and the Robhana Group have bought The Village’s retail space, as well as other commercial property and its neighborhood park and vacant lots, for $6.7 million.
Partners Capital founder Bobby Khorshidi said his group hasn’t decided what to do with the property, including the vacant parcels they acquired. He said they picked up about 45,000 square feet of commercial space at The Village, including retail, offices and some condos above the storefronts, and the holdings are just over 90 percent occupied. When Rialto acquired the property through foreclosure in 2012, it was about 40 percent occupied, said listing broker Phillip Dunning of Colliers International.
The Village is located off Farm Road near Durango Drive in the northwest valley. Asked how it competes for tenants and foot traffic with mixed-use centers like Town Square Las Vegas, Downtown Summerlin and The District at Green Valley Ranch, Khorshidi said it doesn’t but that he’s “flattered by the comparison.” Those projects are “substantially larger” than The Village and cater to residents from around the valley as well as tourists, he said. Their tenants also are “large retailers and corporations.” His tenants are locally owned businesses, and The Village caters more to the surrounding community, he said.
One tenant is The Vault Bicycle Shop, which Skoy opened two years ago. When he first signed his lease, he had seven or eight storefronts to choose from in the main retail drag, Norman Rockwell Lane. Only a handful of tenants were there, he said. Foot traffic since has picked up in The Village, he said, and almost all of the retail space is now occupied.
To read the full article, please click here.
May 5, 2017
Feature on Bisnow: This Week’s LA Deal Sheet
The following was originally posted on Bisnow.com.
Dec 20, 2016 | Karen Jordan
Partners Capital recently purchased a 14k SF industrial building at 12820 Panama St in Del Rey for $4.5M in an off-market deal. Partners Capital president/principal Bobby Khorshidi told Bisnow a JV between Partners Capital and another firm bought the property. It was bought from a family trust. Teledyne is the tenant. Its lease is expiring soon, and the rents are below market, Khorshidi said.
The entire block is in the midst of being redeveloped. “The property is a long-term hold for our company,” he said. “This acquisition represents a continued shift in our acquisition criteria from mostly retail to industrial/flex in line with consumer spending habits.” Khorshidi said his firm is seeing an increased demand for industrial properties and a diminishing supply of them in SoCal. The site is adjacent to 12870 Panama St, which was recently purchased by Ocean Charter School for $20M and will be redeveloped.
To read the full article, please click here.
May 4, 2017
Bisnow’s LA Next Gen Dealmakers Includes Mark Blumenthal
March 6, 2017 | Jonathan Hobfoll
Original content taken from Bisnow.com.
Bisnow is building a national community of dealmakers for their new Ascent membership platform. They gathered a group in West Hollywood at the Little Door to start building the next generation of leaders for their Ascent community, who represent the best and brightest under 45. In attendance at their March 2017 gathering were Yvonne Li, Gemdale USA Corp.; Danny Barnes and BJ Turner, both with Dunleer; Kevin Yee, Caruso; Mo Saraiya, The CIM Group; Jonathan Baruch, Vista Investment Group; Sandeep Pathak, Ackman Ziff; Adam Belfer, H.I.G. Realty Partners; Steve Ravan, South Park Group; Lauren Nourafchan, PRG Funds; David Freeman, Latitude Real Estate Investors; Mark Blumenthal, Partners Capital; and Alyssa Schram, Colorado Federal Savings Bank.
To read the original article, please click here.
February 2, 2017
Partners Capital Funds $8M Cash-out Refinance on a 30,000SF Industrial Building in Downtown San Francisco
LOS ANGELES, CA – January 2017
We are pleased to announce that Partners Capital has funded an $8M cash-out refinance on a 30,000SF Industrial Building in Downtown San Francisco.
The sponsor is under contract to sell the building to a buyer who plans to redevelop the site. The buyer won’t close without permits and approvals in hand, therefore the sponsor required a short-term bridge loan to bridge the gap between now and the buyer’s expected closing.
Partners’ Capital structured the deal to help with the immediate operational and liquidity requirements of the sponsor while bridging the time until the buyer of the property closes on the transaction. The loan included an interest reserve to assist with the cash flow shortfall.
Why Partners Capital? The borrower and its broker chose Partners Capital due to their requirement for a lender with a non-bureaucratic approval process, interest reserve, quick close and minimal 3rd party report requirement.
Loan Details: $8M loan, 9.95% fixed interest, 18-month term plus extensions
Please contact Mark for all new loan submittals. Mark can be reached at 424.270.0167 or email@example.com.
About Partners Capital Finance, Inc.
Partners Capital, Inc. is a California-based direct lender that finances short-term private money bridge loans secured by commercial real estate located in the Western US. Our platform offers quick, reliable & flexible lending solutions to help real estate sponsors meet their investment objectives. Our firm focuses on financing transactions in the $2-$10MM range and provides financing for recapitalization or acquisition of opportunistic and value-add real estate. Since 2002, the company and its principals have been responsible for funding over $1.5 billion of debt and equity.
Contact: (310) 447-8899 www.partcap.com firstname.lastname@example.org