Real Estate private capital

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Business intelligence for the private commercial
real estate markets

Private Capital Activity . Commercial Real
Estate. Quarter 3, 2015
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TOTAL AMOUNT OF OFFERING, Q OVER Q

Monetarex has aggregated and reviewed the data in
668 Form D filings submitted to the SEC for the
real estate industry group as of September 30,
2015, of which 401 are currently active. Total
offering amount stands at approximately 10.3
billion as of September 30, 2015, with the Total
recorded capital commitments of 3.2 billion (or
a 31 capital commitments rate). There is a
definite slowdown in the fundraising activity for
the private capital. The average historical
capital commitment rate has been above 50. In
Q315 the capital commitments lowered even
further (vs. 55 in Q1'15 and vs. 38 in
Q215).The total number of active Real Estate
Private Placement filings across all sectors
increased by about 10, from 611 to 668. Average
minimum investment for the quarter stands at
approximately 136 thousand.
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OFFERINGS BY SECURITY TYPES, Q32015

Currently, equity is clearly the preferred
security type for real estate offerings.
Convertible debt and LLC interests securities
types included in "Other" are the second most
popular alternative to equity. This capital
structure data is in line with the results
reported through June 30, 2015.
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TOP TEN STATES BY AMOUNT OF OFFERING, Q32015

The geographic distribution of recorded capital
commitments has changed from the previous quarter
with the state of Florida leading the way.
California has been the most active state for the
private capital this year both by the amount of
deals and by the total offerings amount. In
Q32015 Florida outpaced the other states in
terms of private real estate offerings with 2.3
billion in offerings spread across 45 deals (22
of total market activity). However, out of 2.3
billion in offerings, only 396 million were
received in capital commitments this quarter.
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BREAKDOWN BY REAL ESTATE INDUSTRY GROUP, Q32015

Almost 40 of Private Placement filings come from
the Commercial Sector representing 3.2 billion
across 241 offerings. Construction activity has
been robust in 2015. As a result, private capital
activity in the Construction Sector has increased
as well (an increase from 1 to almost 4 of
total number of deals). There were 25
opportunities filed in the Construction Sector
during Q3'15 representing 246 million in
offerings.
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NUMBER OF DEALS PER DEAL SIZE, Q32015

In Q315 the average size of the private capital
deal was 15 million, an increase from 12
million in the previous quarter. The change is
primarily due to the fact that the dealflow in
the 10 million - 15 million range almost
doubled.
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DEALS WITH COMMISSIONS AND FEES, Q32015
Deals with Commissions Deals with Commissions to total Median Commissions Maximum Commissions Minimum Commissions
114 17.00 132,900 6,750,000 800

Despite the rise in popularity of crowdfunding
and online investing, the use of traditional
broker-dealers and placement agents still
prevails. In Q315 17 of deals were launched
through and anticipate to pay commissions on
money raised to broker-dealers. The median
commission is 4 assuming the raise is fully
funded. In Q315 the commission range was
0.01-15.
Deals with Finder Fees Deals with Finder Fees to total Median Fees Maximum Fees Minimum Fees
18 7.00 35,000 5,250,000 1,000
In Q315 7 of deals will have finder fees
payouts on the money raised. The median fee is 2
assuming the raise is fully funded. In Q315 the
finder fee range was 0.1-10.