CALCAP CONNECTIONS
February 2021
PRINCIPAL'S CORNER
 
CALCAP Strategic Opportunities—Introducing Preferred Equity


We are excited to announce the launching of CALCAP Strategic Opportunities (CCSO). The CCSO platform is designed to provide gap financing solutions in the multifamily sector, targeting workforce housing projects with values of $5MM to $20MM, and investments up to $10MM per asset.
 
Preferred equity is a financial instrument used to help build the capital stack in real estate investment structures. It is a unique instrument that straddles the line between debt and equity—having the attributes of both. Practically speaking it is an equity investment and receives priority on both distributions and return of capital over the common equity but is still subordinate to the senior loan.
 
CALCAP’s core competencies of lending, asset management and property management have provided us a synergistic opportunity to begin to fill this niche in the market. We believe our combined operating division strengths give us a unique competitive advantage in the market to properly underwrite the risk and manage the assets. We are well positioned to take advantage of key demographic shifts that continue to forecast robust rental housing demand over the next decade.
 
Loan amounts:__________$1,000,000 up to $10,000,000
Max LTV:______________ 90%
Terms:________________ 2-5 years
Transaction Types:______ Preferred equity, Bridge loans, A/B notes, Mezzanine Debt
Property Types:_________Multifamily and SFR Portfolios
Rates:________________10-14% based on leverage, sponsor strength and location
For additional information, please visit us at: CALCAP Advisors - Strategic Opportunities or complete our short Online Inquiry to quickly determine if your gap financing needs, meet our investment requirements.
You can also contact Tim Landwehr at 747.268.0675 or tim.landwehr@calcapadvisors.com
Edward M. Aloe
Founder and CEO
626-229-9057
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Latest Headlines...

Phoenix No. 1 in nation for growth in home values and rent

Monthly appreciation of home values in January matched recent record highs, while annual growth is higher than any time since 2006. Home sales are moving briskly, with homes typically staying on the market for 18 days as of mid-January before the seller has accepted an offer from a buyer — 28 days faster than in 2020 and 2019. For-sale inventory declined again in January, and now stands 26.3% below levels from a year ago.

The Zillow Home Value Index (ZHVI) rose to $269,039 in January, up 1.1% month over month, matching December’s all-time record for monthly growth in data reaching back to 1996. Annual home value appreciation was 9.1% — the largest annual growth recorded since June 2006, before the Great Recession.


Yardi: National Rents Drop 0.2% YOY in January

The overall average rent rose by $3 to $1,392 as some gateway markets show recent rent growth.

Multifamily rents fell by 0.2% on a year-over-year basis in January, according to Yardi Matrix’s latest Multifamily National Report, marking a 20-basis point increase from the YOY rent growth rate recorded in December. Overall, rents rose by $3 to $1,392.

California's Inland Empire leads the top 30 metro markets for YOY rent growth at 7.4%, followed by Sacramento, California, at 6.3% and Indanapolis at 4.5%. Of the top 30, 16 out of 30 are still experiencing YOY rent declines. Some are showing recent improvement; San Jose, California, is up 40 basis points to -13% YOY, and Washington, D.C., is up 40 basis points to -4.5% YOY. However, New York (-12.2%), San Francisco (-9.8%), and Boston (-3.8%) remain on a YOY decline.


Texas Apartment Communities Help Renters Through Crisis

Here’s how property management firms are responding to the severe weather conditions that came to Texas.

The severe weather crisis in Texas over the past week has set in motion a cascading series of events at apartment communities statewide. Power outages have led to loss of heat, burst pipes, flooded apartments and shortages of safe water and food, as well as fire dangers from residents taking risks in warming apartments. According to estimates, the winter weather disaster may have done as much as $50 billion in damage.

On the lighter side....
About CALCAP Advisors
About CALCAP
California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management I & II, CALCAP Properties, CALCAP Lending, and CALCAP Senior Healthcare I, collectively known as "CALCAP"), is a California based investment company founded and 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 10 years. The Company's core strategies look to actively create alpha for investors while managing risk. CALCAP currently has over $350mm in Assets Under Management. To learn more visit www.calcapadvisors.com.
Social Mission
CALCAP has created the CALCAP CARES program to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which will allow employees the ability to donate unused vacation and sick days for a very worthy cause.
LOS ANGELES
The Sanborn House
65 N. Catalina Avenue   
Pasadena, CA 91106

SAN DIEGO 
12626 High Bluff Drive, Suite 360
San Diego, CA 92130 

PHOENIX
740 N. 52nd Street
Phoenix, AZ 85008 

SANTA BARBARA
1309 State Street, Suite A
Santa Barbara, CA 93101


ORANGE COUNTY
92 Argonaut, Suite 205
Aliso Viejo, CA 92656

Edward M. Aloe, Founder & CEO
(626) 229-9057


Patrick A. Wakeman, Principal
(858) 764-4890

Drew Buccino, Principal and COO
(602) 419-3381

Greg Blix
Director of Investor Relations
(805) 896-8500

Len Israel
CEO, CALCAP Lending, LLC
949-439-1044

Mark A. Mozilo, Principal
(626) 229-9056
View our website: www.calcapadvisors.com 
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