Commercial/Multifamily Briefs Oct. 22, 2020

CBRE Group Announces $3 Billion Commitment to Supplier Diversity

CBRE Group, Los Angeles, pledged to spend $1 billion with diverse suppliers in 2021 and to grow this spending to $3 billion in five years.

CBRE plans to substantially increase its engagement and partnerships with businesses that are certified as owned by underrepresented groups including minorities, women, veterans, LGBTQ and disabled individuals. The company is also committed to increasing support for small businesses.

CBRE Chief Procurement Officer Andrea Greco said the firm sees supplier diversity as a strategic differentiator in the marketplace.

“Supplier diversity allows us to make an even greater contribution to the long-term economic stability of our communities,” says CBRE Chief Diversity Officer Tim Dismond. “Our commitment will directly benefit underrepresented businesses and in turn, those businesses will elevate the people and areas where they are located by creating sustainable jobs and tax revenue.”

CRE Income Fund Launches $20 Million Mid-Market Commercial Real Estate Fund

CRE Income Fund launched the CRE Diversified Income Fund, a $20 million commercial real estate fund.

The CRE Diversified Income Fund will invest in middle-market U.S. commercial real estate assets that can deliver attractive risk-adjusted returns through a combination of current income and capital appreciation. The fund seeks to achieve above-market tax-advantaged returns by employing a bottom-up fundamental-based approach within the context of the entire commercial real estate value chain.

The CRE Diversified Income Fund plans to:

1. Acquire high-quality income-producing assets at a discount to replacement costs.

2. Grow the operating income through expense control, property improvements, increased occupancy and revenue growth.

3. Sell for a profit or hold for the long term once any outstanding issues are addressed.

“One of the most common ways investors invest in real estate is to purchase and operate one or more single family houses as rentals,” CRE Income Fund said in a statement. “Having purchased their own home, it’s an understandable approach and it’s an approach they understand. However, for investors seeking a more diversified, balanced and less labor-intensive approach to real estate investing, they may be better off rethinking this strategy and, instead, opting to build a portfolio of passive commercial real estate investments. Providing our clients with insider-level access to secure commercial investments that offer superior tax advantaged returns and growth potential was the primary purpose in launching the CRE Diversified Income Fund.

Freddie Mac Prices $368 Million Multifamily Small Balance Loan Securitization

Freddie Mac, McLean, Va., priced its SB79 offering, a multifamily mortgage-backed securitization backed by small-balance loans underwritten by Freddie Mac and issued by a third-party trust.

The company said it expects to issue $368 million in SB79 Certificates, which should settle on or about October 23, 2020. Freddie Mac Small Balance Loans generally range from $1 million to $7.5 million and are generally backed by properties with five or more units. This is the tenth SB Certificate transaction in 2020.

J.P. Morgan Securities LLC and Wells Fargo Securities LLC served as Co-Lead Managers and Joint Bookrunners.