US Bank’s new lending team; PERE’s inaugural top 200 list; Pembrook Capital MD hire

US Bank announces mid-market focused lending team; Affiliate title PERE publishes inaugural list of the top 200 private real estate firms; Pembrook Capital Management brings on a new managing director; and more in today’s Term Sheet – exclusively for our valued subscribers.

They said it

“Office mandates are never going to work.” 

Marc Benioff, Salesforce co-founder and co-CEO, discussing the much-debated return to work at a company event in New York last month.

What’s new

Aiming for the middle (market) 
US Bank last week launched a dedicated commercial real estate team that will focus exclusively on providing bespoke loans to mid-market borrowers. The St Louis-based team will be led by Tony Janssen. The new team will complement an existing lending platform geared toward larger transactions and target an underserved area, said Hassan Salem, head of commercial banking. The launch comes at an auspicious time for commercial real estate, when market pros are of the mind that any liquidity is good liquidity to counter the current dislocation.

PERE’s inaugural 200 club
Affiliate title PERE has rolled out its inaugural list of the top 200 private real estate firms, a move highlighting just how far the industry has come since a handful of New York investment banks started institutionalizing the asset class in the 1990s. Capital raising in the asset class has become far broader and deeper in terms of sector, geography and strategy, and competition is fiercer than ever. Check out the full list here and take a deeper dive into what the more diverse group of managers tells us about the real estate industry here.

Taxing issues
New York’s frequently used tax abatement program for affordable housing development expired last month after the state’s legislature adjourned without extending the program. While the New York state legislature is expected to renew the program by the end of 2022, there will be a gap during which new development could be frozen, with few residential permits pulled – and a commensurate pullback in lending, according to a report published by data and analytics provider Trepp.


Block party
More private real estate groups are adopting blockchain technology these days, with the latest example coming from Miami-based Infinity Investment Group and A9 Family Office. The partners are targeting $250 million for their residential-focused Infinity Multifamily Real Estate Fund I, which focuses on the 20 largest US markets and contains a unique twist: the firms are looking to tokenize properties to help with exiting investments, according to a release. Capital will be deployed into development projects, which will then be sold via “asset by asset IPOs.” The new fund’s tokenized exit strategy follows Jamestown Properties’ announcement this year that it would accept rental payments in cryptocurrency. The innovation train is picking up speed.


Pembrook hires Malysa from Macquarie
Stuart Boesky’s Pembrook Capital Management this week hired John Malysa as a managing director. Malysa, a veteran commercial real estate credit player, will focus on and underwriting, oversee asset management, and serve as a member of the New York-based bridge lender’s investment committee. Malysa joins from Macquarie Infrastructure and Real Assets’ private credit real estate debt platform, which he built from the ground up. He also filled a senior role at CIBC World Markets, where he was a managing director and head of CMBS securitization and distribution.

Data snapshot

Room for improvement
Big four accountancy firm PwC and diversity and inclusion non-profit Real Estate Balance have found that there is still room for improvement in diversity tracking. A report advising managers on how to better collect DE&I data showed that many firms aren’t effectively measuring their performance in areas like social mobility and religious beliefs.

Borrower’s corner

Warehousing power Faropoint, a data-driven commercial real estate owner and operator, believes mid-sized, last-mile warehouses are only going to increase in importance. “The global supply chain has evolved tremendously over the past decade. When you look at the consumer demand today, there is this expectation for a shorter timeframe for fulfillments,” Jacob Rich, a senior vice-president, said this week. “They want to be very close to the consumer. And they would rather take smaller size properties that are a bit spread out throughout the Metroplex to make sure that they fulfill their obligations to the consumer.”

Loan in focus

Miami’s LOFTY Brickell property (Source: 3650 REIT)

Lofty loan
3650 REIT last week funded a $170 million construction loan on behalf of Newgard Development Group for LOFTY Brickell, a planned 44-story short-term stay apartment complex in Miami. The national lender, which also funded the acquisition of the land at 1101 South Miami Avenue for Newgard, was willing to write another loan based in part on the strength of contracts signed at the tower and its unique strategy, said Jonathan Roth, co-founder and managing partner. “We believe that the property’s unique business plan to accommodate short-term rental ownership will make it a ‘change winner’ in the post-pandemic South Florida,” he added. Read the full story, here.

Today’s Term Sheet was prepared by Anna-Marie Beal with Samantha RowanWill Johnson and Randy Plavajka contributing