See below for a sampling of loans closed in September and October.
A 98-room hotel located in Smithfield, NC. Construction financing is provided by a regional bank.
A very hot summer is over, and we are now into fall, my favorite time of year with cooling temperatures, autumn colors and great sporting events to enjoy. One of the few benefits of having a lot of gray hair is that I have seen several real estate cycles. Early last year I told a young multi-family sales broker, who coincidentally happened to be my son, that making deals was not always going to be like picking up wallets in the parking lot. He now has a better understanding of what I was talking about as sale and debt transactions are all down significantly from this time last year. We are clearly facing some headwinds as the Fed has raised rates from near zero 18 months ago to a current target of 5.25%-5.50%. As of this writing, the 10-year treasury is at a 16-year high of 4.80% while 30-day term SOFR is 5.33%. Banks continue to tighten credit – they are not getting many payoffs as they try to shore up their balance sheets. Our life companies remain active, although many have reached their allocations for this year. The life companies are able to pick and choose among loan opportunities and lower leverage transactions will get the most attention. Spreads range from about 180 to the mid 200s over the corresponding treasury rate for most transactions. With current rates, it is usually debt service coverage that is the constraint versus LTV.
I hope everyone had a great Fourth of July holiday and is enjoying your summers in this crazy real estate environment. Trying to stay positive has been a challenge for this eternal optimist. We have to keep battling and we will get out of this cycle at some point – just wish we knew how long!
Medalist Capital continues to grow! Our recruiting effort is continuing to attract new talent even during the economic headwinds. We recently hired Jimmy Poole to the Investment Sales team in our Raleigh office focusing on Multifamily. Please join me in welcoming him to the team.
We are halfway through our summer internship program and are excited to have two talented individuals from UNC-Chapel Hill joining us this year. Please read below to learn more about Madison and Hardy and hope you have a chance to interface with them.
Over 900 real estate professionals attended the 21st annual UNC Real Estate Conference on April 20th. Of note, there were 16 Medalist Capital attendees including two of our summer interns, which was a wonderful introduction for them to a wide variety of real estate professionals and offered some real insights into today’s complex real estate market. The event was kicked off by David Hartzell, a Distinguished Professor of Finance at the Kenan Flagler Business School. The morning panel included leaders in the office, retail, and hospitality sectors, and was followed by Bob Faith, Chairman of Greystar.
It is springtime in the Carolinas and the pollen season has been brutal. The good news is that the end is now in sight and Carolina blue skies lie ahead!
It is hard to believe that only a year ago the fed funds rate was .50% and is now at 5% after eight rate hikes, including two in the first quarter. Hopefully rate hikes are finally in the rear-view mirror. Meanwhile the 10-year treasury was at 2.48% a year ago, 3.87% at the start of the first quarter, and with much volatility, ended the quarter at 3.37%. Deals can get done at that treasury rate. The rate hikes combined with the Silicon Valley Bank and Signature Bank failures in mid-March created a lot of uncertainty in the market as banks became very focused on retaining deposits and shoring up their balance sheets. It also tended to curb some of the enthusiasm from lenders coming out of the MBA Conference.
Medalist Capital announces it has arranged a $200 million, 5-year loan for Highwoods Properties, Inc. (NYSE:HIW) secured by Bank of America Tower at Legacy Union in Uptown Charlotte. The loan was provided by a correspondent life insurance company at a fixed rate of 5.69%.
See below for a sampling of loans closed in January and February.
Vantage Point I
A 157,500 SF industrial building located near Charleston, SC. Financing provided by a regional bank.
Medalist Capital took eleven (11) people to this year’s MBA -Commercial Real Estate Finance Conference in San Diego. Collectively the Medalist Team attended 39 meetings, 4 breakfast meetings, 4 lunch meetings, and 5 dinner meetings. We met 52 different capital sources over a 2-day period. The last day in San Diego was cold (52 degrees) and raining. Could someone please tell my wife, it was anything but a vacation?!
See below for a sampling of loans closed in September and October.
MURRELLS INLET, SC
An 87,500 SF retail center located near Myrtle Beach, SC. Financing provided by a local bank.
Medalist Capital had a solid third quarter closing 29 loans totaling more than $262 million. We originated loans with life companies, banks, and specialty lenders. We were active in all product types, with multifamily, industrial, and self-storage leading the way. Additionally, our investment sales team continues to expand, closing four sales transactions during the quarter. Despite some of the headwinds listed below, we are forecasting to have one of our best years in 2022.
We hope that you are having a great summer and enjoyed a much-needed break over the July 4th weekend. There was a dizzying array of political, social and economic turmoil in the 2nd Quarter. A long weekend of relaxation with family and friends was certainly welcomed.
As we enter the second quarter of 2022, my Medalist Capital colleagues and I wanted to share a few quick highlights and observations from the first three months of the year which included robust lending activity and an eye-popping run up in the 10-year US treasury yield.
See below for a sampling of loans closed in January and February.
A core urban retail and parking garage condo in Midtown Atlanta. The retail portion consists of 44,302 square feet of Class A retail space located at the base of the highly successful 1010 Midtown residential condominiums. Financing provided by a regional bank.
The Medalist Team recently returned from the annual Mortgage Bankers Association CREF Conference (“MBA”) in San Diego where we met with over 60 lenders including most of our correspondent life insurance lenders. Last year’s MBA was canceled due to Covid, and although frequent Zoom meetings throughout the year were a suitable alternative, they can’t replace the face-to-face interaction. Although MBA is a marathon of back-to-back meetings, it never fails to provide valuable insight into the CRE debt and equity capital markets.
At the start of each year, we take time to reflect on the year behind us and the one ahead of us. In 2021, Medalist Capital had a record year. Join us as we take a look at what made 2021 a success and what our expectations are for 2022.
Click here to view the full 2022 Start-of-the-Year Update.
Charlotte, North Carolina – Medalist Capital is broadening its service offerings with the launch of a dedicated investment sales and advisory division based out of the expanded Raleigh office.
“Josh and Trey are two exceptional individuals who embrace the values we hold dear at Medalist, so we could not be more pleased to have them join the team. They will provide the professionalism and mechanics with which we will grow our investment sales volume, enabling us to serve our clients in even more ways.” stated Don Williams, President of Medalist Capital
We hope that everyone had a happy holiday season enjoyed with family and friends. The primary headlines over the past few weeks seem to be centered around the new omicron variant of Covid-19, but as my spouse noted, “I think if I have to get Covid, I want this kind.” While we should all take reasonable precautions regarding the virus, at least life, business and commerce seem much more normal and vibrant compared to this time last year.
Charlotte, North Carolina - Medalist Capital is pleased to announce the hiring of recently-retired professional basketball player, Marcus Ginyard. In his role at Medalist, Ginyard will focus on finding new opportunities and keeping current deals on track. He will manage client and lender needs while also keeping a pulse on the market.
Medalist Capital closed 19 deals in September and October totaling $327 Million
A newly built, 243,072-square-foot industrial property located in the Southwest Industrial submarket of Charlotte, North Carolina. Financing provided by a correspondent life insurance company.
Please join us in welcoming Jack Codiga and Megan Lovett to the Medalist team. Jack hails all the way from California and will be assisting the Charlotte office. Megan will be assisting the Atlanta servicing team from the Raleigh office. We are very excited to have them both on the team.
Medalist Capital closed 28 deals in September and October totaling $337 Million
Proximity at Tenth
A 609-bed student housing development located in Greenville, NC. Financing provided by a correspondent life insurance company.
Hope everyone has been enjoying the gorgeous weather lately. Looking forward to the true fall weather and almost ready to break out my toboggan collection but not just yet. As our lives seem to be getting back to normal, time sure seems to be going by at a quicker pace compared to the pandemic days. Hopefully we will have a normal Halloween, Thanksgiving, and Santa Claus coming to town.
Please join us in welcoming our newest analyst in the Raleigh office, Maryann Dudeck.
Maryann joined Medalist Capital in August of 2021 as an analyst. Prior to joining the Medalist team, she worked as an investment sales analyst on the Mid-Atlantic Capital Markets team at Transwestern in Washington, DC.
Medalist Capital closed 44 deals in May, June and July totaling $469 Million.
Palmetto Trade Center
North Charleston, SC
A 160,000-square-foot industrial facility located in the thriving Palmetto Commerce Parkway corridor. Permanent financing provided by a correspondent life insurance company.
We hope you had a great July 4th weekend! As of July 1, 2021, it has been 470 days since the pandemic started. Finally, the world seems to be opening back up. We hope everyone is healthy and ready to get back to a more normal tempo. It seems surreal to think about what the world has experienced over the last 470 days. In a strange way, the slower pace offered a chance to reflect on the most important parts of life: family, friends, health, laughter, tears, compassion, and so many other things we take for granted in our fast-paced world. I hope we will keep these in perspective as the world opens back up.
The Park at North Ridge
340-unit multifamily property located in an established submarket in north Raleigh. Financing provided by a life insurance company.
I hope everyone had a safe and productive start to 2021. After such a challenging 2020, it felt good to turn the page and embrace the hope and optimism that seemed widespread to start this year. With the historic March jobs report, a successful vaccine rollout thus far, a declining unemployment rate, and consumer confidence at a post-pandemic high, the country seems well-positioned for continued economic improvement and getting to the other side of the pandemic. Anecdotally, if you traveled for spring break recently, you likely saw America’s desire to get out of the house firsthand!
At the start of every year, we like to reflect on our accomplishments and growth as a company. We speak for all of us at Medalist Capital by saying that we hope this update finds you and your family healthy and safe. While last year was certainly an unexpected one, we are proud to say that Medalist Capital held strong. Take a look at one of the most unprecedented years in our 16-year history: medalist-update.com
2020 is OVER! DONE! FINISHED!
What a crazy year! While we are still battling Covid-19, working to improve race relations in our world, and navigating an uncertain political landscape, I am confident that 2021 will prove to be a healthier, more empathetic, and rejuvenating year.
I will speak for all of us here at Medalist Capital in saying that we hope this update finds you and your family healthy and safe. It goes without saying that Covid-19 has taken a massive toll on our nation’s overall health and economy this year. 2020 continued to pile on in the 3rd Quarter with historic storms in the Gulf and devastating wildfires out West. We all have family, friends and colleagues that have been impacted in one way or another. We send out prayers to all of those impacted and a heartfelt thanks to the healthcare workers, firefighters and first responders that continue to put themselves in harm’s way for others.
First and foremost, we sincerely hope that everyone and their families are safe and healthy. We want to extend our heartfelt thanks to all of those in the medical communities fighting COVID-19, as well as to all the workers who continue to provide services to those who have the luxury of staying at home. As I noted in quite a few social media posts, many of our parents and grandparents were sent off to war. It should not be too great a sacrifice to ask us to stay home for the short term and follow CDC guidelines regarding social distancing and proper sanitary practices.
Three deals totaling over $70 Million closed in the past eight business days
CHARLOTTE, NC and GREER, SC
Portfolio of three industrial buildings, two located in the Charlotte MSA and one in the Greenville/Spartanburg MSA, totaling over 657,000 SF. Financing provided by a life company lender.
The Medalist Team recently returned from San Diego having attended the annual CREF Conference where we met with over 50 lenders including most of our correspondent life insurance lenders. It was a busy three days and the best conference I’ve attended since joining the company.
Medalist Capital had its best year in 2019. What a great way to celebrate 15 years! We are most appreciative of our loyal client base and lender network that made it possible. Click here to read about some of this year’s accomplishments.
We hope everyone had a great holiday season being with family and friends. School starting back has been a positive in the Raleigh office – a little less parent Uber service has been welcomed!
To say the least, Medalist Capital is very thankful for 2019 as many records were broken! In our 3rd quarter newsletter, Howie “The Machine” Brooks was on target indicating that we were on track to close $1.7 billion in 2019. Due to a tremendous 4th quarter, closing 41 loans totaling $616 million, we clipped his prediction by closing $1.71 billion! Loans ranged in size from $1.5 million to $63 million ($15 million average) and included a wide variety of property types including retail, industrial, office, multifamily and self-storage. Borrowing rates during the quarter ranged from 3.20% to just over 5.00% depending on term, leverage and the timing of rate lock over treasuries. It is incredible how attractive these long terms rates continue to be. As always, we are very appreciative of our correspondent life insurance companies, which are the best in the industry in my humble opinion, as well as many other capital sources for providing the most competitive loans available in the market.
We were very busy at Medalist Capital in the 3rd Quarter. We closed 27 loans totaling $545 million and had one of our best months ever in October with 10 closings totaling $347 million. Medalist Capital is currently on track to close $1.7 billion dollars in 2019, our best year since inception in 2004! Our servicing portfolio had a 12% year-over-year increase and should reach $3 billion by year-end.
2019 has been a busy year thus far from both a production and hiring perspective. We recently hired a new producer in the Charlotte office, an analyst in the Charlotte office, and a new loan coordinator in the Atlanta office. Read more about the experience they bring to Medalist Capital below. We are excited to have them on the team!
Greetings from an unsurprisingly hot and humid Charleston, SC. Something tells me that had the Continental Congress met in the Carolinas rather than Philadelphia in 1776, our Founding Fathers might have delayed establishing our Nation’s independence until a little later in the fall. It’s hard to believe that we are already less than a week from the halfway mark of summer but time flies when liquidity in the debt capital markets is robust and the 10-year Treasury yield is within earshot of an all-time low.
Greetings from Medalist Capital! Masters week is here, signaling the beginning of spring, which is especially welcome after most of us in the Southeast have endured an unusually wet winter. The Masters always delivers, and this year should be especially exciting with Rory, Tiger, D.J., and many others in good form. I’m feeling a fifth green jacket for Tiger!
Now that the summer and its heat has passed, I hope everyone is excited about the cooler fall temperatures but can also look back on some memorable summer adventures. Obviously, the big event this past quarter for those of us in North Carolina was Hurricane Florence. Although the storm delivered a serious blow to the eastern region of our state, the strength and resiliency of our community has been remarkable. Also notable is the overwhelming desire of so many people not directly affected by Florence to help our eastern neighbors, either financially or by volunteering their time for cleanup efforts. We Carolinians are a tough bunch, and we are making that evident right now! Please continue to keep those affected in your thoughts and prayers.
Summer is here! Despite a cooler spring that seemed to linger much longer than usual, we certainly have jumped head first into the “dog days” of summer. Despite the recent heat wave that swept across much of the country (and certainly hit us here in the Southeast), we hope that everyone had a safe and fun-filled Fourth of July. Hopefully, you found a cool breeze while celebrating our country’s Independence in the presence of family and friends. With the 4th falling midweek this year, we certainly felt a pause before and after the holiday. It seems that both our clients and lenders are now back in the saddle and ready to continue what has already been an active 2018.
Despite the extended winter weather during the first quarter of 2018, business activity has been boiling at Medalist Capital, where we achieved record volume with 34 deals totaling $497 million! The current pipeline is also very robust and we want to thank our loyal clients and capital sources whose efforts also helped us surpass $10 Billion in loan volume since the inception of Medalist Capital in 2004!
Medalist Capital recently arranged life insurance company financing for The Gramercy in Raleigh, North Carolina and Solis Ninth in Durham, North Carolina. Both deals were led by Howard Brooks, Principal, in Medalist’s Raleigh office.
Medalist Capital Arranges $100 Million Debt Placement for The Pinnacle at Symphony Place in Nashville
Medalist Capital recently arranged financing for The Pinnacle at Symphony Place in Nashville on behalf of Highwoods Properties. The debt placement team was led by Bat Barber, Principal, in Medalist’s Raleigh, NC office with one of their correspondent lenders, Allianz Real Estate, who was the sole lender on the $100 million financing.