Private Capital Activity Q3’15 results: construction up, capital commitments down.
Monetarex has aggregated and reviewed the data in 668 Form D filings submitted to the SEC for the real estate industry group as of September 30, 2015, of which 401 are currently active. Total offering amount stands at approximately $10.3 billion as of September 30, 2015, with the Total recorded capital commitments of $3.2 billion (or a 31% capital commitments rate). There is a definite slowdown in the fundraising activity for the private capital. The average historical capital commitment rate has been above 50%. In Q3’15 the capital commitments lowered even further (vs. 55% in Q1’15 and vs. 38% in Q2’15).The total number of active Real Estate Private Placement filings across all sectors increased by about 10%, from 611 to 668. Average minimum investment for the quarter stands at approximately $136 thousand.
The geographic distribution of recorded capital commitments has changed from the previous quarter with the state of Florida leading the way. California has been the most active state for the private capital this year both by the amount of deals and by the total offerings amount. In Q3’2015 Florida outpaced the other states in terms of private real estate offerings with $2.3 billion in offerings spread across 45 deals (22% of total market activity). However, out of $2.3 billion in offerings, only $396 million were received in capital commitments this quarter.
In Q3’15 the average size of the private capital deal was $15 million, an increase from $12 million in the previous quarter. The change is primarily due to the fact that the dealflow in the $10 million – $15 million range almost doubled. Continue reading...
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