CAPRE’s Commercial Real Estate Headlines for October 29, 2019

Check out the latest deals and developments in commercial real estate for October 29, 2019:

  • TPG RE Finance Trust, Inc. Closes $1.2 Billion Commercial Real Estate CLO: TPG RE Finance Trust, Inc has announced the closing of TRTX 2019-FL3, a $1.23 Billion USD managed Commercial Real Estate Collateralized Loan Obligation with a 24-month reinvestment period. The Company placed $1.04 billion of investment grade bonds with third party institutional investors. TRTX 2019-FL3 has an advance rate of 84.5%, and a weighted average interest rate at issuance of LIBOR plus 1.44% before transaction costs. The CRE CLO financed 22 existing TRTX first mortgage loan investments, comprising 20 pari passu participation interests and two whole loans. TPG RE Finance Trust Management, L.P., TRTX’s external manager, is the collateral manager for the CRE CLO. Proceeds will be used to retire borrowings under certain of the Company’s secured credit facilities, and to fund new investments.
  • David Frasz Joins Hunt Real Estate Capital as Vice President, Commercial Loan Originations: David Frasz has joined Hunt Real Estate Capital as Vice President. In this role, Frasz will focus on originating Fannie Mae and Freddie Mac small balance multifamily loans nationwide. He is based in Washington, D.C. and reports to Owen Breheny, Managing Director. Prior to joining Hunt Real Estate Capital, Frasz was a Vice President on the production team at Capital One Multifamily Finance. Before Capital One, he held key roles with Arbor Realty Trust, where he developed his Fannie Mae and Freddie Mac expertise through underwriting more than $1 billion in closed loans and the pre-screen oversight of more than $9 billion. Earlier in his career, Frasz held various positions at State Street Global Markets and J.P. Morgan.
  • Prologis to Acquire Liberty Property Trust for $12.6 Billion USD: Prologis and Liberty Property Trust have entered into a definitive merger agreement by which Prologis will acquire Liberty in an all-stock transaction, valued at approximately $12.6 billion, including the assumption of debt. The board of directors of Prologis and the board of trustees of Liberty have each unanimously approved the transaction. The transaction deepens Prologis’ presence in target markets such as Lehigh Valley, Chicago, Houston, Central PA, New Jersey and Southern California. Prologis plans to dispose of approximately $3.5 billion of assets on a pro rata share basis. This includes $2.8 billion of non-strategic logistics properties and $700 million of office properties.
  • Morgan Properties Acquires 18,000-Unit Portfolio, Becomes Top 5 Multifamily Owner in the Country: Morgan Properties, one of the nation’s largest and fastest growing multifamily investors, announced today it completed a portfolio transaction to acquire nearly 80 apartment communities encompassing approximately 15,000 units across eight states. This transaction takes Morgan Properties’ total portfolio to more than 75,000 units in 15 states throughout the country, making it one of the five largest multifamily owners in the U.S. Since 2012, the King of Prussia, Pennsylvania-based owner and operator has acquired more than $7 billion in total acquisition volume comprised of 50,000 units. Following this transaction, Morgan Properties has agreed to acquire an additional 3,000 units from the same owner, further expanding its portfolio. Morgan Properties acquired this portfolio from Morgan Communities, a company based in Rochester, New York which has no relation to the Pennsylvania-based company.
  • Rexford Industrial Acquires Industrial Property For $8 Million; Sells Property For $11.2 Million USD: Rexford Industrial Realty has announced the acquisition of an industrial property for $8 Million USD and the disposition of one asset for $11.2 Million USD. The acquisition was funded using cash on hand. The Company acquired 8985 Crestmar Point, located in San Diego within the Central San Diego submarket at $143 USD  per square foot. The low-coverage property consists of an industrial building containing 55,816 square feet on 3.42 acres of land that is currently 88% leased to two tenants at below-market rents. The Company sold an industrial complex located at 13914-13928 E. Valley Boulevard in La Puente, within the LA – San Gabriel Valley sub-market, for $192 per square foot. The Company had acquired the property for approximately $4.7 Million USD in 2013.