Capital Calls - Who is having them?
Obviously there is a lot of news on the Tides' capital call. Who else is having capital calls?
- Windmass? I heard they were from one of their investors.
- Laguna Point? They took a big hit in Los Angeles but i haven't heard about anything else?
- GVA? They had an announcement that they were likely going to do capital calls but i never saw anything else. What have you heard?
- Carroll?
- ZMR?
- Western Wealth?
- Knightvest?
- Gatesco?
- Ashland Greene?
- CAF Capital Partners?
- Blue Magma?
- S2?
- Rise 48 Equity?
- Rockwell Parnters?
- RXR Realty?
- Sares Regis
- SB Real Estate Partners
- Sunrise Multifamily?
- Sunroad Enterprises?
- TruAmerica?
- JB Parnters?
- EZ Real Estate?
- Ezralow Company?
- 3rd Ave Investments?
- Berkshire Residential?
- Benedict Canyon Equities?
- Dasmen Residential?
- DB Capital Management?
- DiNapoli Capital Partners?
- Element Property Company?
- J Fisher Companies?
- Keller Investment Properties?
- Kennedy Wilson?
- Nitya Capital?
- Osso Capital?
- Rincon Partners?
- Roundhouse?
- Redhill Realty?
- 29th Street Capital?
- 37th Parallel Properties?
- Ambo Properties?
- American Realty Investors?
- Ashcroft Capital?
- Ashford Communities?
- Aspen Oak Capital Partners?
- Atlantic Pacific Companies?
- Barvin Group?
- Bellrock Real Estate Partners?
- Blazer Real Estate?
- Colony Hills Capital?
- Comunidad Realty Partners?
- Cortland?
- CWS Capital Partners?
- Disrupt Equity?
- Elandis?
- Electra America?
- Exxir Capital?
- GWR Equities?
- Headway Capital Multifamily?
- Hilltop Residential?
- Ilan Investments?
- IMH Companies?
- Inuds Management Group?
- Investcorp?
- Investor Management Group?
- Kanesville Capital?
- Keener Investments?
- LivCor?
- Lone Star Funds?
- The Lynd Company?
- M Group Capital?
- Madera Companies?
- Magma Equities?
- Manhattan Five Partners?
- Morgan Group?
- Nova Asset Management?
- Old Three Hundred Capital?
- Polaris Real Estate Partners?
- Post Investment Group?
- Presidium Group?
- Raven Capital Group?
- REEP Equity?
- Rockwell Management?
- Sahara Equity?
- Sentinel Peak Capital Partners?
- Shahda Investments?
- Stonecutter Capital Management?
- Strategic Property Investment?
- Sylis Real Estate?
- The ValCap Group?
- Venterra Realty?
- Westmount Realty Capital?
Hi InfoMatix, the silence is deafening, sorry about that.... Any of the threads below helpful?
More suggestions...
I hope those threads give you a bit more insight.
This is a huge syndicator list, did you manually put this together? We're pretty active in the space and I haven't heard of a good chunk of these guys
And many others are very, very large owners who might just have a bad deal here or there (TruAmerica, Electra America aka American Landmark, LivCor, Cortland, etc.) and are extremely well capitalized, so you won’t hear of any distress if it ever materializes - they will work out those couple deals with lenders or weather the cash flow storm.
Additionally, capital calls aren’t necessarily a bad thing - some operators, particularly value add firms with institutional LPs, call capital regularly to fund capex projects. Not everyone funds capex through debt future funding like Tides. These JVs can do this because both the operator and LP are well capitalized, so there isn’t really a worry or risk of them not having the funds for a capital call, like there would be in a syndication.
I have it from firms across the west (not all states) that did variable rate loans
Great list, you should include from all States to really get the party started
Probably not RXR, as they do not seem to mind handing back keys.
Quite a list.
Some of these are family offices…
Which are FO?
Pls list
If anyone on this forum could actually give you good Intel - they probably wouldn’t provide it because it is confidential information. And frankly, so many investments are up shits creek right now, it’s irrelevant.
This is so broad as to be useless.
And a capital call isn't always a sign of massive distress, or a major red flag (though of course it's rarely a good thing). If you've got a well-heeled sponsor with real equity in a deal, who is coming in pari passu, then a lot of the criticism and contempt being lobbed at Tides, for example, sort of goes away. A firm with a 30 year track record who found themselves on the wrong end of a massive run up in rates is a lot different, ethically, than a firm like Tides, which is essentially running a scam. A firm with 20 assets who is calling capital on 1 or 2 is a lot different than a firm with 20 assets calling capital on 11 or 12.
So I'm not sure what you're expecting to get out of this, but a fishing expedition to see where there might be distress (the only actually useful reason to ask the question) may not matter unless you have some context around who each of these firms are.
Pretty much the same fishing expedition for all of this person's threads.
Posts a list of firms that most people have never heard of, ask what they are doing, and is trying to point to one or two having some issue as total market distress.
Total waste of time for the actual professionals on this forum.
Just trying to understand the market. No need to start attacking. I am looking at sponsors, banks and debt firms going under. Trying to understand the depth of the problem is not bad. I’ve seen people claim everything is fine until they are about to declare bankruptcy. I have seen debt departments have no clue what to do with mounting defaults. Tides claimed all was well until last week but everyone knew they were screwed.
planned capital calls are different unplanned capital calls. Just interested in the unplanned capital calls.
So if you got an answer for every single one of those firms, how would that help you understand the market? Unless you are getting confidential information about the terms of every deal every one of those firms is in, the answers don't help you reach your stated goal at all. Which is why people are telling you that the question is so broad and so vague that it's meaningless. It's not an attack on you, it's just noting that you can't actually derive value from this. Grow a thicker skin and imbibe the lesson, don't immediately cry that you're a victim of internet meanies.
If you want to learn, posit a specific example and ask people for their advice or input. Asking for an exhaustingly long list of unconnected and uncorrelated data points won't teach you anything. As I often say, just because you have an opinion does not mean it is right, or even prima facie worthy of respect. All you've done here is outsource a major chore and headache
If we knew the firms were going under - why would we share it on an anonymous forum? On top of that - if you want market intel - you’re not getting it here - why trust an anonymous forum? Go into the market. Speak to people. Get your intel. Figure it out. The market is a wreck right now
Sounds like you hit a nerve with some… people most likely work at shops on this list.
As others have mentioned, there’s a huge difference between a planned capital call (capex related, debt pay down, etc.) then an unplanned one, for say, a deficit in operating cash flow to continue normal operations.
No one is crying, and I didn’t talk about online bullying. Just a comment that let’s be nice to each other. A civil discussion tends to be the most productive.
I have managed billions in AUM and raised hundred of millions in equity. Maybe you’ve done more and if so that is great. I am very well aware of how companies operate.
most sponsors, especially syndicators, call all the equity upfront. It is rare for them to call it as the project goes on. Development is different but that list is mostly value-add acquisition sponsors. Understanding what is going on there is an insight into the market. If people on that list are doing capital calls, it is because they are struggling.
If you've managed billions in AUM and raised millions in equity, then why the fuck do you care about these no name companies?
You know what my billion dollar fund cares about? Other billion dollar funds with similar profiles. I do not care about small, no-name companies. If they go under, they do under.
All of your lists are unfocused at best and non-sensical to learning about the market at worse. Also, if someone is trying to hide they are in trouble, how the hell do you think you are going to be the first to find out via a public forum?
Unless you are planning on putting out information on your firm, why would you think anyone else would?
We were having a civil discussion. You brought up the idea that no one should "attack" anyone else.... which means you feel attacked, else you wouldn't mention it in the first place. To which we all say - grow a thicker skin, and ask better questions.
Apparently not, from the tenor of this post.
As I pointed out upthread, "struggling" covers a pretty vast constellation of issues. There is "I'm completely broke and losing all my properties to foreclosure" struggling, and then there is "inflation ate into my contingency so I need a small amount of capital to finish my punch list" struggling. The fact that you don't seem to understand this, even after it's been made explicit, doesn't lend much confidence to your claim that you've "managed billions of AUM."
If everyone in the room seems to think you're the idiot... well, you probably are.
Wtf are these names dude, please chill out
Some of those firms are a little smaller but the vast majority have billions under management. That list represents well over a hundred billion if not multiple hundreds of billions in AUM.
If you are in the multifamily value-add space, most of those names are fairly well known.
If you don't want to participate in the potential information on this feed, no sweat. Enjoy your day and don't follow-up on the feed. There is nothing to fight about here.
Obviously there’s a lot of news around interest rates. Carroll is one that has complained and selling portfolio.
Who else is having issues?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Carroll?
ZMR?
Western Wealth?
Knightvest?
Gatesco?
Ashland Greene?
CAF Capital Partners?
Blue Magma?
S2?
Rise 48 Equity?
Rockwell Parnters?
RXR Realty?
Sares Regis
SB Real Estate Partners
Sunrise Multifamily?
Sunroad Enterprises?
TruAmerica?
JB Parnters?
EZ Real Estate?
Ezralow Company?
3rd Ave Investments?
Berkshire Residential?
Benedict Canyon Equities?
Dasmen Residential?
DB Capital Management?
DiNapoli Capital Partners?
Element Property Company?
J Fisher Companies?
Keller Investment Properties?
Kennedy Wilson?
Nitya Capital?
Osso Capital?
Rincon Partners?
Roundhouse?
Redhill Realty?
29th Street Capital?
37th Parallel Properties?
Ambo Properties?
American Realty Investors?
Ashcroft Capital?
Ashford Communities?
Aspen Oak Capital Partners?
Atlantic Pacific Companies?
Barvin Group?
Bellrock Real Estate Partners?
Blazer Real Estate?
Colony Hills Capital?
Comunidad Realty Partners?
Cortland?
CWS Capital Partners?
Disrupt Equity?
Elandis?
Electra America?
Exxir Capital?
GWR Equities?
Headway Capital Multifamily?
Hilltop Residential?
Ilan Investments?
IMH Companies?
Inuds Management Group?
Investcorp?
Investor Management Group?
Kanesville Capital?
Keener Investments?
LivCor?
Lone Star Funds?
The Lynd Company?
M Group Capital?
Madera Companies?
Magma Equities?
Manhattan Five Partners?
Morgan Group?
Nova Asset Management?
Old Three Hundred Capital?
Polaris Real Estate Partners?
Post Investment Group?
Presidium Group?
Raven Capital Group?
REEP Equity?
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Rockwell Management?
Sahara Equity?
Sentinel Peak Capital Partners?
Shahda Investments?
Stonecutter Capital Management?
Strategic Property Investment?
Sylis Real Estate?
The ValCap Group?
Venterra Realty?
Westmount Realty Capital
Forgot one.
Rockpoint
OP is likely a journalist for The Real Deal if I had to guess. Just fishing the WSO forum looking for dirt so they can write another shitty hit piece.
Any insight into Disrupt Equities based in HTX
Capital Calls are hardly thread-worthy. When you underwrite interest at 0.0000001% and it jumps to 8%, your interest reserve projections are going to be wildly off. Some projects will out-perform cash flows and won't need the help. Some projects will.
This is big boy business. You go to your equity parter with your tail between your legs, explain the situation, and take on that capital infusion with 18% interest to right the ship. You win some, you lose some.
Everyone’s acting like capital calls are just part of the business. Unplanned capital calls (not CapEx related) certainly are not and it’s a stain on an operators track record. Yes, interest rates soared. While the extent of this increase was unpredictable, a 200-300bps increase should have been expected and buffers should have been in place.
You really see the difference between pre- and post-2008 real estate investors in time like these. Experience matters.
Lol if you're throwing money $hit, you know you and/or your company is in the rookie camp having to send out capital call notices right now. Welcome to the world where real estate doesn't just go up indefinitely. Learn from these years and it's all good.
I am sincerely grateful that I have never had to do this with my investors and I sincerely hope I will never need to but there is nothing easy about going to your investors and telling them that their equity has been wiped out and they need to put in more money to avoid foreclosure. No investor (big or small) will react well to that conversation.
If you have done it successfully, it would be interesting to hear your experience.
Regardless, I will try to invest in a way that can best avoid that possibility.
Something something watering the weeds. If the equity is impaired to that degree, hard to get LPs to come to the table as they're effectively just flushing their new capital down the toilet. You don't use good money to save bad deals.
100% agree but people have been doing it for the last year.
Prime example in the news is the pref Tides secured to buy them a few more months.
From what I have heard, a lot of investors have reached the end of feeding the deals and just stopped paying their mortgages in November.
I don't agree. Calling capital right now to buy a 2 year interest rate cap isn't throwing good money after bad. If my building is cash flow with the 10 year at 4%, I have a real story to tell my investors, who may think that throwing a couple hundred grand in the pot to save millions is a good idea. As always, it depends on the asset and the story in question. If my deal needs to get back to July 2021 rates to pencil? Yeah, that one is getting handed back to the lender. If I need to get back to July 2022 rates, or even to where we were in July 2023, that's an entirely different story
What?
Not that it's a fun or flippant convo, but asking your equity partner for another $100k-$200k, which you'll pay 15%-18% on, to cover unforeseen interest expenses while you finish out lease up is incredibly far from an end of days conversation. No one is wiped out. No one is worried about foreclosure. Additional capital contribution clauses are literally written into the org docs, and hell, if you have a good lender, you can sometimes rework the loan so that 65% or whatever of the additional capital needed is debt.
Again, this is the real world. Sometimes deals dramatically outperform underwriting. Sometimes deals need a little help getting to positive cash flow in a unique interest rate environment.
There are many many sponsors who have never had to do a capital call and their long term track record is just as strong. Also, the fact that capital calls are much more common with sponsors that have been in the business less than 10 years versus those with greater than 10 years of experience is pretty telling. Playing devil's advocate, it is more common on the institutional side if they have a fund because they know the fund has excess capital for those scenarios and not including the excess reserves upfront helps boost IRR.
We should acknowledge that sponsors, developers, crowd funds, CLOs, and debt funds are wiped out in mass right now. It is not every shop but nearly every shop is taking losses right now.
I talked to a group yesterday that raised more cash for a debt reserve required by the clo. Every single dollar he just sent to the clo is gone forever. The loan is 70% under water and all parties in the deal are going to take it in the shorts. If he tries to raise more money on this deal to fund more short falls, they are going to further kill their chances of being able to survive after this multi year correction finishes. Capital calls that are planned and budgeted for in the construction word are very different than a deal that raises all their cash upfront for an acquisition and renovation.
There have been far too many people in the market trying to make a quick buck by risking other peoples money without understanding market and operation fundamentals.
It would be great to bring it back a bit. This is all anonymous so none of this should be personal, meaning we don’t need to be mad at people that disagree and have no clue who they are. For all we know, it is a troll sitting in a basement or the ceo of arbor, or a junior year intern.
I and probably others are trying to understand what is happening on the ground, so we can prepare better for the future.
If you have info on who is doing capital calls that would be helpful.
Also, as some of you clearly do development, it would be interesting what is going on in the development banking world? Are draws getting approved? Are they want loans to payoff faster? Any insights would be helpful!
No issues on our development loans with the lenders, all draws approved on schedule. The only annoying conversation that has been happening monthly is interest reserve related, where they insist on continuing to pad it because committee is bored to death, not doing any deals and just micromanaging every loan on their book. We obviously don't want to make capital calls just to pad a fucking overfunded reserve that will just sit in a cash trap, so that's a pain in the ass but that's the only complaint we have at the moment.
Draws are getting approved rapid fast and the lenders don't want us to sell. They want to keep those loans in-house.
Do you not know what a "draw" is and you're just repeating the word because you think it sounds nice?
A construction draw is not the same as a loan. You submit your requisition once work is complete so you can pay your contractor - the loan itself entitles you to those funds. As long as your paperwork is in order, the bank can't really stop you from drawing down your loan unless they have a valid concern over where those funds are going (e.g. if they think you're stealing them and not using it to progress your project). It isn't dependent on a tight credit market or anything like that
Which MSAs are your deals in?
I mostly work in the southwest. I don’t do development but understanding the lenders perspective is important
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I don't know if this is a spammer or a really confused boomer
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