Meridian Capital Group and Baring announced the name and provided more details on their multi-family financing venture called NewPoint Real Estate Capital.
David Brickman will lead the new platform as CEO. Brickman moved to NewPoint from Freddie Mac where he was CEO and increased annual production from $ 16 billion in 2010 to nearly $ 80 billion in 2018. Jeff Lee will become president of NewPoint, leaving his position as executive vice president of multi-family lending at Beech Street Capital, a firm he founded in 2009 and sold to Capital One in 2013.
In 2020, Meridian closed $ 40 billion in funding, including $ 28 billion in multi-family funding, and the firm’s chairman and chief executive officer, Ralph Hertzka, and president Yoni Goodman, charted NewPoint’s growth trajectory.
The new platform joins an extremely active sector. Recent report notes that the volume of multi-family transactions exceeded $ 138 billion last year and reached $ 32 billion in the first quarter of 2021, making this asset class the most liquid of all types of commercial real estate. Closed-end funds targeting apartment buildings has closed $ 68.4 billion since 2016.
Dallas-Fort Worth, Atlanta and Phoenix are the most liquid markets in the US, crowding out the historic pillars of Los Angeles and New York. Capital gains are also increasingly targeting garden and mid-rise properties in less densely populated areas, according to JLL. In addition, the report also notes a strong appetite on both sides of the lending table. Total apartment mortgages in the first quarter were $ 51.8 billion, with agency lenders accounting for 62% of loans issued.