Altoma, a CRE debt and equity placement shop based in California, closed $72,479,500 in debt financing spanning 14 transactions from early October 2016 to early June 2017. The placements included acquisitions and refinances for repeat and new clients alike, further bolstering a track record for executing as promised and exceeding expectations.Fresno, CA, June 30, 2017 – As 2017 reaches the halfway point, Altoma Real Estate Advisors LLC has been busy financing a sliver of the trillions in commercial real estate debt on the books in the United States. To put things in perspective, $72,479,500 out of $11,000,000,000,000+ equates to 0.0000065% of the pie, so it’s sobering to be six decimal places to the right of 1% market-share, though comforting to know there’s plenty of room to grow.
In reference to the recent cycle of loan closings and enduring narrative of rising interest rates, Altoma Principal Dean Sparks said, “Closing transactions right after the 2016 Presidential election was very interesting. Frankly, I’ve not been in the industry for decades and can only look back on historical data to get a sense for trends, though it was very unexpected to see indexes rise so vigorously, to the point where deals with narrow coverage were seriously impacted. Of course, that run-up has since stabilized, and it’s clear that materially higher interest rates have still not evidenced themselves at this time, at least to the degree that so many others anticipated.”
The past 8 months have been an exciting time for Altoma. In the period from early October 2016 to early June 2017, transactions were closed in CA, OR, NV, UT, ID, AZ, WI and MN. The deals have comprised multifamily, retail and industrial, with a definite slant toward retail, including anchored, shadow anchor and single tenant (STNL). The vast majority of the recent transactions have been permanent financing execution, though transitional bridge, construction and equity placement are well within Altoma’s capabilities. Altoma is especially proud of the outcome for a particular bridge transaction in Portland, as perhaps the most well regarded national firm in the CRE financing space was unable to execute, prior to the sponsor’s engagement of Altoma. It provided a great opportunity to showcase capabilities for a sponsor that has historically only trusted large national firms for his financing. The deal in question was a $14,500,000 loan on a recently constructed Class A multifamily project, which needed to exit a senior/mezz construction loan at an excessive cost of capital, prior to stabilization.
For the remainder of 2017 and beyond, Altoma is fortunate to have a robust pipeline of deals, including a more prominent amount of construction and structured financing, such as equity raise and loan placement for ground-up construction, at project size and scope that have previously had barriers for opportunity. The need for the more basic permanent financing on acquisitions and refinances will surely not go away, though it has always been Altoma’s goal to continually expand into larger, more complex and challenging placements, which generally escape the vast majority of participants in the CRE financing space. On his feelings toward the great relationships that have been built in the business, Dean Sparks had the following to say, “It truly feels good to gain the trust of so many of our clients and peers in the industry. When we started out, the entire business was built on cold calling. So much has changed, in that we are referred opportunities from numerous investment sales brokers and also clients themselves, on a routine basis, to the point where cold calling is almost unnecessary. The retention we have for clients and referrers of business is excellent, and I’m very proud of the trust that is bestowed upon us.”
About: Altoma Real Estate Advisors LLC is a commercial real estate mortgage and capital markets intermediary based in California. Founded by Dean Sparks in 2012, Altoma started focusing solely on CRE debt and equity placements by 2014, and quickly established themselves as an “outlier.” Altoma advises on financings from $1mm to no ceiling, in all CRE asset classes, and in every investment profile. Their clients range from large developers and operators to principals with a single asset.
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