Finance Mortgage Banking
Apollo to Pursue Additional RE Debt Acquisition
Aug 19, 2008
By: Dees Stribling, Contributing Correspondent

There's little doubt that debt, besides being the raw material of the real estate crunch, is also a pretty hot commodity in some ways, as property values decline and loan-to-value ratios shift. In recent weeks, as reported by CPN, such investors as the new Investcorp Real Estate Credit Fund L.P. and Inland American Real Estate Trust have been eager to snap up real estate debt.

New York-based Apollo Real Estate Advisors has also stepped up its interest in real estate debt recently, raising additional capital for its debt investment fund, Apollo Real Estate Finance Corp. (AREFIN). All together, the firm says it has increased the overall capital for AREFIN's investment program from $621 million to $930 million through the formation of AREFIN Co-Investment Corp. (ACC), with the additional funds providing the ability to make larger investments.

AREFIN, formed in 2006, originates loans for development, redevelopment and repositioning, and invests in whole loans, B-notes and mezzanine loans. ACC, the new vehicle, was formed to accommodate the increased deal flow and to handle loan commitments up to $250 million.

Earlier this year, AREFIN and M&T Bank provided a $163.5 million floating-rate debt package to Taconic Partners and Square Mile Capital for the $172 million purchase of 375 Pearl Street, a 1.2 million-square-foot office building in Manhattan, also known as the Verizon Building. Apollo arranged for M&T Bank to provide $110 million in senior debt financing.

Apollo is an international real estate investor and fund manager. Since its founding in 1993, it has established a number of real estate funds and joint ventures totaling about $11 billion in equity commitments for investment in the United States and elsewhere. The Apollo funds collectively have invested in more than 465 transactions with an aggregate value of more than $40 billion.

 
Recent Mortgage Banking Headlines
$334M in Commercial Mortgages are Likely to Default, Bank of America Buys Stake in China Construction
Nov. 19, 2008
While Wall Street rebounded Tuesday in another turbulent session as investors rushed back into the market after the Standard & Poor's 500 index tested a 2003 low, the market for debt used to finance hotels, offices and shopping malls tumbled Tuesday on worries that the long-feared rise in defaults for commercial mortgage-backed securities had begun, possibly ushering in the next phase of the financial crisis, according to the Wall Street Journal.
Financial Market Update: Consumers Decide to Stay Home
Nov. 14, 2008
After yesterday's upward bump, the Dow Jones index slipped into another downward course today losing some 338 points, or 3.82 percent. The S&P 500 slipped more, 4.17 percent, and the Nasdaq even more than that, an even 5.0 percent.
$1B CRE Finance Company Makes Debut

Nov. 13, 2008
Ladder Finance Capital L.L.C. has announced that it is up and ready to do business. Based in New York City, the new firm will specialize in commercial real estate finance--certainly a market in the midst of some upheaval. The company has approximately $1 billion in equity and debt capital to put to use.
Financial Market Update-Where Have All the Jobs Gone?
Nov. 13, 2008
Shaking off more bad news on the employment front, markets surged today with a late rally. Perhaps driven by bargain seekers, the Dow Jones index spiked up 552 points, or 6.67 percent today. The S&P 500 gained 6.92 percent, while the Nasdaq was up 6.5 percent.
Dow Sluggish After Morning Jump
Nov. 10, 2008
After a morning up, the Dow Jones index ended the day down 73.27 points, or 0.82 percent, with the S&P 500 and the Nasdaq a bit down as well (1.27 percent and 1.86 percent, respectively). It could be that the initial enthusiasm investors showed in other parts of the world for the Chinese stimulus plan had worn off by the time U.S. markets were open very long. Part of the downward movement in the market today also involved Goldman Sachs shares, which were down about 8.7 percent seemingly on rumors that the company is planning a new secondary equity offering, only six weeks after its most recent offering.
 

 

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