Term Sheet: Barings and Counterpointe’s collaboration; Mesa West’s renewed priorities; Southern Californian mall goes ‘back to the future’

The rise in prominence of C-PACE financing is on full display for a Los Angeles mixed-use project with $315.5 million of funding from Barings and Counterpointe Sustainable Advisors ; Mesa West Capital has growth ambitions under Ronnie Gul and Raphael Fishbach ’s leadership; an iconic California mall is headed ‘Back to the Future’ with fresh financing from Hankey Capital, LLC on tap for its redevelopment; and more in today’s Term Sheet.

Tips & feedback to Samantha Rowan or email samantha.r@pei.group

They said it

“Homebuilders just need the red tape removed”

Willy Walker , chairman and chief executive of Bethesda, Maryland-based manager and advisory Walker & Dunlop , told PERE Credit this week about how getting land entitled efficiently continues to be a hindrance to housing unit development.

What’s new?

California blend

Charlotte, North Carolina-based manager Barings and Greenwich, Connecticut-based manager Counterpointe Sustainable Advisors linked up to fund a $315.5 million development financing package, of which $155.5 million is derived from a Counterpointe-originated C-PACE financing. Continue reading...

Investor interest

Institutional investors are increasingly carving out real estate debt as a key component in their portfolios as the need for bespoke investment strategies becomes imperative. One notable example of late is Concord, California-based investor Contra Costa County Employees Retirement Association. CCCERA’s move follows Denver Employees Retirement Plan’s pivot toward real estate private credit at its August 16 meeting. The investor, which manages $2.62 billion of assets overall, has rebalanced its portfolio in favor of private debt – which encompasses corporate debt, real estate debt, infrastructure and opportunistic credit strategies – at the expense of its core real estate target.

Trending

High-tier hospitality

The upper echelon of the hotel sector continues to see a steady flow of refinancing capital. Secaucus, New Jersey-based manager Hartz Mountain Industries this week benefited from such favorability by securing a $230 million refinancing package from New York-based JPMorganChase for the Roxy Hotel at 2 Avenue of the Americas and Soho Grand Hotel at 310 West Broadway in New York City. Read more...

Data snapshot

Delinquency driver

The delinquency rate of commercial mortgage-backed securities saw a slight uptick to 5.44 percent in August, with the multifamily sector contributing $408 million of newly delinquent loans to drive the metric up, according to a report published this week by New York-based data provider Trepp, Inc. . The multifamily delinquency rate climbed 67 basis points to 3.3 percent, marking the sector’s highest rate in more than three years.

Launch pad

Tactical launch

San Antonio, Texas-based manager Affinius Capital is in the market to raise its next real estate investment strategy. The firm last week filed with the Securities and Exchange Commission to launch Affinius Tactical Partners IV, continuing a fund series previously debuted during the firm’s days as Mile Square Capital Advisors .The debt-geared strategy previously focused on US real estate sectors including multifamily and industrial, which have both remained lending targets for Affinius in recent quarters.

Loan in focus

Back to the financing

A California mall is heading “Back to the Future” with fresh acquisition financing and redevelopment plans lined up. Puente Hills Mall, which featured as the key time-traveling location and fictional “Twin Pines Mall” in the 1985 film, this week received $115 million in financing for its purchase and rework. Los Angeles-based Hankey Capital, LLC provided the three-year, floating-rate loan secured by a joint venture between local manager RCB EQUITIES #1, LLC and Newport Beach-based Real Estate Development Associates, which plan to revitalize the property, located at 1600 South Azusa Avenue in City of Industry, an Eastern Los Angeles suburb. Dive into the detail....

Explore the full content of this week's Term Sheet.