“But, our aspiration would certainly be by the end of this year.”Īfter all, “in a lot of cases, you’re barely able to get 70 percent leverage in multifamily,” Brickman said. Certainly, that’s what we were able to do over at Freddie Mac, when we developed our securitization program, and I think there’s an opportunity to look at something similar in the non-agency world.”Īs for a timeline for a launch of a new securitization vehicle, “we have to crawl before we walk,” Brickman said. “And I think there’s an opportunity to rethink securitization for multifamily. “Multifamily has been underrepresented in CMBS for a long time,” Brickman said. So, is there a way to deliver some additional first mortgage capital by utilizing the capital markets? I think that’s going to be the greatest strength of this platform.”Īs such, NewPoint will be identifying pockets of capital to partner with and creating a new securitization vehicle to provide higher leverage for institutional multifamily product with strong sponsorship. “Preferred equity and mezzanine is part of, but actually, the bigger opportunity is rethinking part of the equation. “Given where pricing is in multifamily, and where conventional lending standards are, it’s hard to meet capital’s need with first mortgage debt as it’s currently done today,” Brickman said. “Investors see the need for multifamily housing in the U.S., and that the long-term prospects for rental housing in particular are extremely strong, so we’ll see continued construction and continued strong price appreciation.”īrickman said that NewPoint is going to be able to distinguish itself from a swelling sea of competition on the lending side by leaning into management’s deep expertise and filling spots in the capital stack - emerging in a post-COVID world - that are too complex for conventional multifamily loan executions. “Multifamily continues to ride a tremendous wave,” Brickman said. The platform launch comes on the heels of ever-increasing investor interest in the multifamily sector, which only underscored its accolade as a true, safe haven asset class during the COVID-19 pandemic and saw investors reallocate capital to it, away from asset classes languishing under the weight of the pandemic. NewPoint also intends to reinvent multifamily securitization. It will focus primarily on multifamily lending opportunities- both market rate and affordable - as well as senior housing, health care properties and manufactured housing. Department of Housing and Urban Development (HUD)/ Federal Housing Administration (FHA) loans, as well as customizable financing and more tailored solutions for lending needs outside of the agency lending box. With its leadership’s deep roots in agency lending, NewPoint will provide Fannie Mae, Freddie Mac and U.S. “We have the ability to create something that will reflect not just where the industry is today, but where we think it’s going.” “So, we’ve got this fantastic sponsorship behind us, each with deep roots in real estate, and yet, we have a brand new platform,” he added. It’s got this tremendous sponsorship in terms of established institutional partners: Meridian, a huge real estate juggernaut in the industry Barings, also a significant player and Stone Point Capital in the background.” “What’s really unique and makes this a once-in-a-lifetime opportunity is the alignment of stars that’s occurred, in terms of this opportunity to start a new venture that’s also not truly new. “I think it’s an incredibly exciting time to launch our new platform,” Brickman told CO. Schonfeld, head of affordable programs Wayne Elibero, senior relationship manager Bob Douglas, senior relationship manager and Karu Arulanandam, head of affordable underwriting. In addition to Lee, NewPoint has hired six other multifamily heavy hitters to its senior management team, each with 20+ years of experience within multifamily and agency lending: Phil Spellberg, chief operating officer Elie Tannous, head of capital markets Joshua L. Brickman was formerly CEO of Freddie Mac, while Lee was previously the head of multifamily and head of underwriting and asset management at Capital One. The new platform is led by David Brickman as CEO and Jeff Lee as president. SEE ALSO: Angelo Gordon’s Adam Schwartz On Real Estate Opportunities in a Downturn
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