by Ralph Rader
Metropolitan Capital Advisors (“MCA”) is a member of the Real Estate Capital Alliance (“RECA”), a professional association of 19 independently owned commercial real estate financial 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. In 2017, RECA members closed a combined $3.7 billion in commercial real estate finance transactions; this represents a collective closed production level that puts RECA amongst the Top 20 finance intermediaries in the country. With this reach and production, capital providers across the country have certainly taken note of RECA.
Real Estate Capital Alliance (RECA) Membership Process
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: the 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 too. RECA members share to-the-minute capital market information via a proprietary database. In addition, RECA members share transaction-specific information to ensure 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 Power of Real Estate Capital Alliance (RECA) In Getting Deals Done
While this shared market knowledge is the primary way member firms help each other, there are occasions where it makes sense for firms to partner on deals. One such example transpired when MSF Capital Real Estate Capital (“MSF”), a RECA member firm based in Dublin, Ohio, recently received a client request to raise senior debt financing for a multifamily development in Austin, TX. While Austin is one of the hottest markets in the nation, the overall development pipeline and fears of being late in the cycle have caused lenders to tighten the reins on construction financing making it more difficult to find a suitable lender especially for out-of-market sponsors. Through the RECA network, MSF reached out and partnered with MCA to leverage our Texas banking relationships and provide the best possible capital in the market. Together, MSF and MCA arranged construction debt of $12.8MM with a community bank for the development of a 122-unit multifamily property located in Austin’s vibrant Riverside neighborhood, near the Austin CBD and University of Texas.
This is just one of many examples of collaboration throughout the Real Estate Capital Alliance (RECA) network. In utilizing this network, we help ensure our clients have access to the best and most efficient capital in any market.
The author, Ralph Rader, is a Senior Financial Analyst in the Dallas office of Metropolitan Capital Advisors. Ralph can be reached at email@example.com or at 972.267.0600.