Recently Goldman Sachs closed on its purchase of Genesis Capital, which lends money to developers who buy, renovate, and resell single family homes. This seemingly obscure corner of real estate finance has also attracted attention from KKR, which struck a deal with Toorak Capital, and Kuwaiti investment vehicle Wafra Capital, which partnered with Anchor Loans. Meanwhile, Blackstone is aiming to build the Finance of America brand as a lender to investors in single family homes as well.
While Goldman, KKR, Wafra, and Blackstone each have their own reasons for focusing on this niche, we believe they all recognize several attractive features of this type of investment program. Jan Brzeski, Managing Director and Chief Investment Officer outlines some of those features in the article he contributed for the Mann Report.
A strong economy, heightened regulatory standards for banks, and a greater appetite for risk among many investors has led to brisk growth for non-bank lenders, a trend that’s played out with recent deals in Los Angeles.
Arixa Capital welcomes Adam Candler as a Commercial Loan Officer. In his role, he will bolster Arixa’s growing platform to finance commercial real estate developers operating in California’s urban areas, focusing on unparalleled customer service and reinforcing the company’s reputation for white-glove loan servicing and intelligent private lending solutions.
A decade on from the global financial crisis, non-bank lenders represent an established part of the US real estate debt market. In the last cycle, non-bank lenders were part of the picture, but the retrenchment of banks from US real estate post 2008, has led to rapid growth in private debt providers. As the market continues to evolve, five key trends are worth watching.
Real estate crowdfunding came into existence after the Global Financial Crisis. Several high profile startups got started around 2010-2012, spurred in part by the JOBS Act which streamlined the process of raising capital from individual investors. As the Internet transformed one industry after another, the real estate investment space appeared stodgy and overdue for disruption. Jan Brzeski, managing director and chief investment officer at Arixa Capital outlines some lessons we have learned from the successes and failures in this space so far, and a few predictions for the future.
Most wealth managers today advise investors to maintain a diverse portfolio of stock and bond funds. However, there is one glaring problem with this advice: neither type of investment generates much income. Jan Brzeski, Managing Director and Chief Investment Officer at Arixa Capital writes how non-bank lending creates valuable opportunities as a complement to traditional investments.
Jan Brzeski is the managing director and chief investment officer of Crosswind Financial and Arixa Capital Advisors. Brzeski has learned powerful lessons from life’s ups and downs, not only from his extensive background in investment and finance, but also as an entrepreneur who had to start over again after the internet stock market bubble burst in 2002. He shares those lessons with Private Lender and discusses the national trend toward—and his company’s focus on—urban redevelopment.
Jan Brzeski, Managing Director and Chief Investment Officer at Arixa Capital writes an article predicting where the industry is going and how many non-bank lenders have grown into substantial business.
Connect Media interviews Managing Director & CIO of Arixa Capital, Jan Brzeski on his insights about the investment market in Los Angeles as well as covering the highly anticipated annual real estate event on May 2nd.
Together with his partners and colleagues at Crosswind Financial and Arixa Capital, Jan Brzeski is building a real estate private lending business that truly puts customers first. With the mantra of “white glove service,” the team provides all customers and prospective customers with a level of service you would expect from a private banker.
Arixa Capital welcomes Dan Frankel as Director of Investor Relations and Business Development. In this role, he will support a community of investors and developers operating within the small balance lending niche for urban residential renovation and construction projects. His focus will help Arixa expand its evergreen real estate lending funds and strengthen its capabilities to support its growing origination volume.
Jan Brzeski, Managing Director and CIO of Arixa Capital contributes an article to REI Weath that covers the topic of cryptocurrencies. "We have reached a very interesting moment for those of us with a strong interest in finance and economics. In recent weeks, some of the leading minds in the investment and finance business have opined about Bitcoin and other cryptocurriences. Jamie Dimon of JP Morgan Chase called Bitcoin “a fraud” and Howard Marks has referred to it as a “speculative bubble” or “pyramid scheme”. He then revised his view, noting that it could be used legitimately as a medium of exchange, so long as enough people agree to accept it."
Non-bank lender Arixa Capital will begin selling some of its fix-and-flip loans, which carry a 8%-10% loss-adjusted yield, directly to investors in the next few months, according to Jan Brzeski, chief investment officer.
Hard money loan funds have numerous advantages over most of the platforms, including more conservative LTV's, higher volume, instant diversification, better transparency, easier management and early liquidation. However, finding a good fund has been very difficult for many investors. Ian Ippolito, investor and serial entrepreneur has writen his top 15 hard money loan funds for 2017-2018.
Commercial development is booming in Inglewood, and residential real estate is anticipated to follow. Developers, investors, politicians and commercial real estate brokers cite the incoming Los Angeles Stadium and Hollywood Park entertainment center, the new Metro Crenshaw rail line, and $14 billion invested in nearby Los Angeles International Airport as driving forces behind new apartment construction, raising apartment rents and increasing home prices. LABJ asked Greg Hebner, Managing Director at Arixa Capital what he thinks about the residential real estate in Inglewood.
Jan Brzeski of Arixa Capital analyzes current bank lending regulations, why they are so heavily regulated and what regulators should focus on. GlobeSt.com sat down with Brzeski for an exclusive interview to talk about the regulation of bank lending.
Jan Brzeski, Managing Director and CIO of Arixa Capital contributes an article for Western Real Estate Business that discusses the potential for increased yields that can seem attractive to many of today's investors. However, a certain amount of 'buyer' beware' exists, which makes it incumbent upon the prospective investor to do their homework.
Since the financial crisis, there has been substantial growth in non-bank lending platforms, including fintech companies along with an increase in banking regulations. With the growth of non-banking lenders, Jan B. Brzeski, managing director and chief investment officer of Crosswind Capital and Arixa Capital, questions if the government should increase regulations of non-bank lending to “level the playing field.” GlobeSt.com sat down with Brzeski for an exclusive interview to talk about the regulation environment of bank and non-bank lending.
Ian Ippolito, investor and serial entrepreneur has been interviewed by the Wall Street Journal, Business Week, Forbes, TIME, Fast Company, TechCrunch, CBS News, and FOX News. Ian writes and reviews the Top Hard Money Loan Funds of 2017-2018. Arixa Secured Income Fund as well as Fund III made the list.
In the LABJ Forum section, the rebounding price of gold spurred A-Mark Precious Metals to acquire gold retailer Goldline last month in a move to expand A-Mark's business lines. Jan Brzeski, Managing Director and Chief Investment Officer at Arixa Capital was asked if he purchases gold as an investment.
For those who invest in real estate in the Golden State, it makes sense to ask where the greatest need for investment lies. But the most pressing need is likely for additional housing close to jobs, which therefore represents the most interesting opportunity for investors. Jan Brzeski, Managing Director and Chief Investment Officer of Arixa Capital shares his insight to the growing opportunities in California.
The decade since the financial crisis has been challenging for our nation overall, but it has been a fertile period for non-bank real estate lenders. The great majority of Americans were angered by what they saw as reckless and sometimes cynical behavior by both commercial and investment banks who profited immensely from lax lending practices, and then needed taxpayer bailouts to avoid bankruptcy. As a result, Congress passed new rules, mostly generated from the Dodd-Frank Act, that greatly restricted bank lending to real estate investors and developers of any kind.
Multifamily lenders are looking to coastal infill markets for multifamily opportunities. Arixa Capital is finding the best opportunities in major coastal California markets, including Los Angeles, where it has more than half of its projects, as well as Orange County and the Bay area. These markets have strong access to job centers, which is one of the firm’s key investment characteristics.
In the last year, banks have tightened construction loans because of fears about overbuilding. Not all lenders, however, are following suit. Arixa Capital is only lending on residential construction projects. To find out more about why the firm is so bullish on multifamily construction and what types of properties that they are focused on, GlobeSt.com sat down with Arixa Capital's Managing Director and Chief Investment Officer Jan Brzeski for an exclusive interview.
Small-balance bridge lending in the commercial real estate market exists in a sort of parallel universe to the world of large institutional real estate finance. "Small-balance" is generally defined as a loan under $10 million -- with the cutoff often going as low as $5 million or less. Such loans are the bread and butter of many regional and local lenders, including hard money lenders. These smaller lenders may be like little fish compared to their much larger financing cousins, but they can play a pivotal role in providing a short-term financing bridge to getting the deal done.
Growing your business fiscally and physically can be one of the most challenging things for a business owner to go through. The Los Angeles Business Journal covers how banking relationships and drawing investors might be the key as a small business owner. Jan Brzeski, Managing Director & Chief Investment Officer of Arixa Capital was mentioned in the article as one of the most influential lenders financing the opportunities in redeveloping and rebuilding the World War II-era style homes across California.
Commercial real estate construction and development tend to be cyclical — trending up and down in line with other economic indicators. Despite the volatile nature of this industry, commercial mortgage originators sometimes may find developers to be overly optimistic, hoping that somehow a new building boom will be different from previous ones and will not end up in a bust.
One active West Coast player in the middle market lending space is finding growing opportunities to answer the question: Why don’t banks fulfill this lending gap in Ca for small scale developers? States Jan Brzeski, founder of LA-based Arixa Capital Advisors (www.arixacapital.com),“The banks are too slow to accommodate the small developers in this space, as the California market dynamics requires them to be both nimble and well-capitalized to turn properties around and resell them into this competitive market.
Arixa Capital's principals, Jan Brzeski and Greg Hebner, specialize in private lending secured by real estate. Drawing from, and building on their past professional experience, they share how they set up an income-oriented, risk-controlled, capital preservation niche strategy across U.S. west coast real estate.