First-of-its-kind single-asset, single-borrower
("SASB") transaction validates flexible apartment properties as an
institutional asset class
LOS
ANGELES, Dec. 11, 2024 /PRNewswire/ --
Newmark Group, Inc. (Nasdaq: NMRK) ("Newmark" or "the
Company"), a leading commercial real estate advisor and service
provider to large institutional investors, global corporations, and
other owners and occupiers, announces the completion of a landmark
$525 million refinancing
on behalf of ICONIQ Capital and Sentral: a first-of-its-kind
single-asset, single-borrower CMBS loan to refinance flexible
apartment properties. Newmark Co-President of Debt & Structured
Finance Jonathan Firestone and Vice
Chairman Bill Fishel arranged the
financing, which was provided by Deutsche Bank and Goldman
Sachs.
The transaction is tied to a portfolio of six apartment
properties totaling 1,790 units in vibrant urban markets. Sentral
operates each asset in the portfolio, including approximately 25%
of the units under a "flexible living" strategy in which units are
fully furnished and made available for short- or mid-length stays.
Terms of the financing include wide latitude for flexible
management and various lengths of stay to optimize property
performance. The six-building portfolio includes Sentral Union Station in Denver, Sentral Michigan Avenue in
Chicago, Sentral SoBro in
Nashville, Sentral Wynwood in Miami, Sentral East
Austin 1614 and Sentral East
Austin 1630.
"This is a milestone transaction representing a significant
validation of the flexible living model as an institutional asset
class," said Firestone. "ICONIQ's SASB issuance is an endorsement
of its innovative approach and Sentral's track record among debt
underwriters and investors, including some of the largest and most
sophisticated CMBS investors in the world."
Sentral was created in 2019 to deliver flexibility to consumers
and allow them to live on their own terms in high-quality
multifamily assets in the most dynamic cities across the country.
As the operator of the six properties included in this transaction,
the company has developed a track record of strong results that
have outperformed results from traditional apartment operations.
Sentral now manages over 10,000 units in a third party capacity on
behalf of ICONIQ and other institutional owners.
Roman Speron, President of
Sentral, said, "While furnished short- and mid-term rentals are
relatively new to the Class A multifamily sector, consumer demand
has been strong for many years. Sentral provides a way to capture
this demand, manage and optimize results for institutional
apartment owners and enhance satisfaction for long-term residents
too."
"ICONIQ's SASB transaction, and the pricing transparency that it
provides, affirms that Sentral's flexible apartment assets are
treated very similarly to traditional apartment buildings from a
capital markets perspective," said Fishel. "Over time, we expect
flexible apartment assets to be valued in line with traditional
apartment assets given the consistent increased yield premiums the
Sentral platform is able to generate relative to traditional
apartments."
Gibson Dunn and Latham & Watkins also advised on the
transaction.
About Sentral
Sentral is the leading Class-A multifamily property management
company that drives Net Operating Income for owners through
differentiated operating capabilities. The company provides
full-cycle property and asset management services on over
$4 billion in multifamily assets for
a growing list of institutional owners, nationwide. Sentral
delivers flexible living services, authentic local experiences,
premium amenities, community connection for residents and guests,
and a tech-enabled platform that enhances operational efficiency.
Sentral is backed by world-class firms in technology, hospitality,
and real estate, including ICONIQ Capital, Highgate Hotels, and
Ascendant Capital Partners. The company is headquartered in
San Francisco and Denver. To learn more, visit Sentral.com or
follow @SentralLife.
About ICONIQ Capital
ICONIQ Capital is a global investment firm elevated by an
extraordinary community. With over $80B assets under management, we seek to build
resilient investment portfolios, partner with inspired
entrepreneurs transforming industries, manage our clients' lives
and legacies, and create uncommon opportunities across sectors and
society.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries
("Newmark"), is a world leader in commercial real estate,
seamlessly powering every phase of the property life cycle.
Newmark's comprehensive suite of services and products is uniquely
tailored to each client, from owners to occupiers, investors to
founders, and startups to blue-chip companies. Combining the
platform's global reach with market intelligence in both
established and emerging property markets, Newmark provides
superior service to clients across the industry spectrum. For
the twelve months ended September 30,
2024, Newmark generated revenues of approximately
$2.6 billion. As of that same date,
Newmark's company-owned offices, together with its business
partners, operated from nearly 170 offices with more than 7,800
professionals around the world. To learn more,
visit nmrk.com or follow @newmark.
Discussion of Forward-Looking Statements about
Newmark
Statements in this document regarding Newmark that are not
historical facts are "forward-looking statements" that involve
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements. These
include statements about the Company's business, results, financial
position, liquidity, and outlook, which may constitute
forward-looking statements and are subject to the risk that the
actual impact may differ, possibly materially, from what is
currently expected. Except as required by law, Newmark undertakes
no obligation to update any forward-looking statements. For a
discussion of additional risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see Newmark's Securities and Exchange
Commission filings, including, but not limited to, the risk factors
and Special Note on Forward-Looking Information set forth in these
filings and any updates to such risk factors and Special Note on
Forward-Looking Information contained in subsequent reports on Form
10-K, Form 10-Q or Form 8-K.
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SOURCE Newmark Group, Inc.