By: Scott Lynn and Andrew Hanzl
Metropolitan Capital Advisors (“MCA”) is a member of the Real Estate Capital Alliance (“RECA”), a professional association of 18 independently owned commercial real estate finance intermediary firms. The firms are comprised of more than 70 producers located across the U.S. RECA allows members to better serve their clients by providing access to a wider range of financing relationships to follow transactions in markets across the country. Capital providers have certainly taken note of RECA. In 2016, RECA members closed a combined $4 billion of commercial real estate finance transactions; this represents a collective closed production level that puts RECA amongst the Top 15 finance intermediaries in the country.
RECA members are carefully recruited and evaluated by a Membership Committee to ensure they are highly experienced commercial real estate financiers who add value to the overall association through the following: experience of a variety of property types, deal structures, and capital provider relationships. Although most of our members have, at one time or another, been associated with large national platform brokerage or finance companies, they prefer to serve their respective clients through a more hands-on, entrepreneurial, and client-centric approach.
RECA member weekly conference calls feature guest speakers and provide immediate access to an audience of over 70 finance member brokers for capital providers to present their latest programs and deal structures to. RECA members share to-the-minute capital market information via a proprietary database. In addition, RECA members share transaction specific information to assure that all prospective financing requests are presented to the most viable sources of capital, whether they are a debt or an equity placement (or anything in between).
The best example of the power of the RECA network is seen when individual members reach out to the RECA Group for assistance on specific transactions. For example, MCA recently received a request to raise both the senior debt and joint venture equity ($15.34 million of total capital) for a client, to help them acquire an office building in a suburb of Philadelphia, PA. As a Dallas based firm, we weren’t particularly familiar with the Philadelphia office market! Thankfully for us another member of RECA was ready, willing, and able to offer guidance. Gregg Wallace of AMA Financial LLC, based just minutes from the subject property, immediately offered his assistance. MCA decided that the best way to service our client was to enter into a co-brokerage agreement with AMA. MCA and AMA then brainstormed a list of capital sources and went out to the capital markets. Gregg had the ground level experience in Philadelphia that we needed to sell in the local market. He was available to tour the property at a moment’s notice. Working collaboratively, MCA and AMA were able to secure a 71% LTC acquisition loan for the amount of $11,440,000, as well as an additional $3,900,000 from a joint venture equity partner.
This is just one of several examples of collaboration throughout the RECA network of firms on a daily basis.
To learn more about the Real Estate Capital Alliance, visit the RECA website at www.reca.us, or contact Scott Lynn of Metropolitan Capital Advisors at email@example.com or Gregg Wallace of AMA at firstname.lastname@example.org.