The End of the Beginning
By Scott Lynn
Metropolitan Capital Advisors celebrated twenty-seven years in business during 2018, highlighted by completing over $850,000,000 of new debt and equity transactions. MCA completed sixty-seven (67) assignments during the past year that were placed with 34 different capital providers. Closed transactions included a variety of property types such as mixed-use, multifamily, retail, office, hospitality, senior living, land and housing development, medical, self-storage and single tenant real estate. Funding for many of our 2018 transactions were provided by regional banks, private book lenders and private equity capital which demonstrates our Clients required maximum flexibility to maneuver the ever changing matrix of interest rates, leverage and market cycles. Clients remain focused on price and structure at all levels of the capital stack.
2018 left us thinking, what lies ahead for commercial real estate? Will increasing interest rates along with continued deleveraging or our banking system put the brakes on what has been a long and sustained real estate cycle? What inning are we in? Liquidity is plentiful. Capital sources are behaving in a responsible manner with risk priced accordingly. Both Sponsors and Capital Providers are carefully watching how property valuations play out as interest rates increased whittle away investor returns. New types of property uses such as “experiential” retail and “creative” office environments are presenting new and challenging underwriting issues. Winston Churchill best summarized the current status quo. “Now, this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”
With over $14 Billion of closed commercial real estate finance transactions since 1992, our firm is committed to the exclusive representation of our clients as a financial intermediary, clearly positioned to provide unbiased recommendations and solutions. The quality of our servicer and our loyalty to our clients differentiates us from other advisory firms.
Over the years, we have grown our firm organically; building from the ground up by recruiting, investing and mentoring young talent. It has taken time to groom and transition our Senior Directors into top producers in the commercial real estate finance industry.Validation of our success is evident as Metropolitan Capital Advisors has been consistently ranked as a Top #30 U.S. Financial Intermediaries by National Real Estate Investor Magazine.
The Metropolitan Capital Advisors’ Leadership Team includes Founding Principal Scott Lynn and Co-Principals Todd McNeill and Sunny Sajnani. Our firm also has an office in Denver, Colorado led by Charley Babb. We are a member of the Real Estate Capital Alliance (RECA), a national association of eighteen like-minded real estate finance companies with $4 billion of annual transaction volume. Our association with RECA gives our firm the capability to serve our clients around the country for any type of project or capital requirement. Today, over 50% of our business is closed on transactions outside Texas.
Success and longevity were not easily accomplished; our firm is extremely grateful to our clients who have entrusted us with their transactions, and to the many capital providers who have helped our clients achieve their goals. Finally, we appreciate all the commercial real estate professionals, brokers, attorneys, title agents, appraisers, contractors, collaborators and friends who have worked with us over the past twenty-seven years. Thank you for being a part of our history and our success!
The author, Scott Lynn, is the Founding Principal at MCA. Scott can be reached at 972-267-0600.