Cantor Fitzgerald Introduces Second Non-Traded REIT to Focus on Debt
December 5, 2017 | James Sprow | Blue Vault
Cantor Fitzgerald LP is launching its second non-traded REIT, Rodin Income Trust, that aims to raise up to $1.25 billion to originate, acquire and manage a diversified portfolio of CRE investments inside and outside of the U.S. The REIT will invest in mortgage loans, preferred equity and mezzanine loans, real estate securities, and/or investment properties. The offering will include Class A, Class T, and Class I shares of common stock. Class A shares will be offered to the public at $26.32 per share, Class T at $25.51 per share, and Class I at $25.00 per share. The Class T shares will have an ongoing distribution fee. The sponsor has agreed to pay a portion of the underwriting compensation in an amount up to 4.0% of the gross offering proceeds.
In its registration filing, the REIT said it expects that opportunities will be available for investment in maturing loans and new loans. Interest rates remain significantly below the long-term average and borrower demand for acquisition debt has accelerated, particularly in secondary and tertiary markets. Borrower demand for mezzanine debt also increased as underwriting terms for some refinance loans remained more conservative than the maturing mortgage leading to a gap in the required refinancing proceeds.
Cantor Fitzgerald is the parent of Newmark Knight Frank through its BGC Partners Inc. Newmark is a multinational real estate service firm, founded as a commercial real estate services firm in Manhattan in 1929. Newmark operates from over 100 offices across the United States. In its initial securities offering filing, Rodin Income Trust said it expects Cantor Fitzgerald's experience in global financial markets and Newmark's local real estate knowledge to help it to source potential investment opportunities, many of which it believes will not be available to its competitors.
Cantor Fitzgerald’s first non-traded REIT, Rodin Global Property Trust, was effective in March 2017 and invests in net leased retail real estate. It broke escrow on May 18. As of November 10, 2017, it had raised about $15 million and owned one property, a Walgreen's in Grand Rapids, Michigan, and an interest in a DST which owns seven properties.
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