Equity, Debt Finance Pick Up Speed in OC

The revival of OC CRE has attracted an influx of equity and debt players looking to profitably park their funding. And it's covering all property types.(It bodes well for our combo hotel/storage idea: you drop off unwanted items but can stay the night to say goodbye.)

Bridgeport Investments founding principal Randy Bramel tells us he anticipates an increase in equity capital deals over the next year. Equity investors have an appetite to create a pipeline of good opportunities, especially with capable niche sponsors and developers, he notes. The window of opportunity is open: the market is recovering, but not overheated.

Bridgeport Investments recently secured two equity financing commitments: $35M on behalf of CapRock Partners to fund industrial acquisitions in California, and $10M in equity for Peninsula Retail Partners to buy retail development opportunities (pictured: Daylight Creek in Rancho Cucamonga, a recent Peninsula project). The financing enables Irvine-based CapRock to complete all-cash transactions and purchase properties at foreclosure sales, according to Randy, while Newport Beach-based Peninsula is willing to look at various retail developments, from single-tenant ground leases to new shopping center construction.

On the debt side, Sabal Financial Groups Alina Mardeish believes loan originations will continue to increase this year and beyond because theres still plenty of opportunity to acquire real estate at a significant discount to replacement cost and prior cycle peak values.Combined with improving market fundamentals, real estate operators and investors will able to tell a fresh story, particularly in projects with value-add or reposition potential, she says. While there is a prevalence in office and retail, she sees "new lending opportunities across all property type sectors."

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