Market Insights
Everything we do is underpinned by proprietary analytical tools and methodologies – then battletested by an in-house team of research analysts and real estate capital market experts. We believe that this combination provides Amherst Capital with an information advantage and differentiated perspective into the fundamentals driving performance.
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"Meet the A.I. Landlord That's Building a Single-Family-Home Empire"
Fortune – June 2019 Data science helped Amherst Holdings CEO Sean Dobson make a fortune in the housing crash. Now he's deploying A.I. to profit from properties that most investors wouldn’t touch.
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“Amherst Capital Lends $23M for Macy’s Store Repositioning in Nanuet, NY”
Commercial Observer – March 2019 Amherst Capital Management has provided $23 million in debt to a joint venture led by Metropolitan Realty Associates to reposition a former Macy’s department store in Nanuet, NY, Commercial Observer has learned. The three-year acquisition and construction loan went to MRA and its equity partner Angelo Gordon & Co. for the duo to redevelop the site, modernizing it in preparation for a Macy’s departure.
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U.S. commercial real estate still undervalued compared with U.S. stocks
Institutional Real Estate, Inc. – May 2019
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Recently, Jonathan A. Schein, managing director of global business development at Institutional Real Estate, Inc., spoke with Abbe Franchot Borok, head of originations at Amherst Capital Management, the commercial real estate lending business of Amherst. The following is an excerpt of that conversation. -
“Stuck in the Middle: Smaller Boutique Hotels Are the Odd Ones Out”
Commercial Observer – February 2019
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Boutique hotels have a Goldilocks problem.
Hotel financiers must decide whether a lending opportunity is too big, too small or just right.
For many, boutique and independent hotels in the $30 million and under range are firmly on the “too small” side and are viewed as riskier investments. For others, this creates a unique lending niche where the risk-return reward is . . . juuuuust right.
With the market slowing and hotel room supply outpacing demand in some of the country’s major markets, it’s more costly to be a boutique borrower today. That’s coupled with the fact that lenders are shying away from non-branded hotels or ones that don’t demonstrate a surefire record of success. -
“Finance Market Realigns as Rates Rise and CMBS Loses Share”
Commercial Observer – November 2018
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Abbe Franchot Borok, managing director and head of originations for commercial real estate lending speaks at Commercial Observer’s 3rd Annual Fall Financing Commercial Real Estate Forum in New York -
“Why Grocery-Anchored Retail Holds Just About the Only Appeal to Investors”
Commercial Observer – May 2018
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Looking at recent past performance, grocery-anchored retail has held up better than big-box retail, primarily due to lower online adoption,” said Abbe Franchot Borok, managing director and head of originations for commercial real estate lending at Amherst Capital Management. -
“Everything’s Pretty Rosy, but a Wee Correction Could Be Coming”
Commercial Observer – April 2018
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There’s also some misconceptions around the number of alternative lenders in the market right now, and not enough appreciation for groups’ individual niches, Abbe Franchot, head of originations for Amherst Capital Management said. For Amherst, that niche is heavy value-add lending opportunities led by sophisticated sponsors.
Franchot has seen an increase in the number of mid-business plan refinances in transitional loans, where sponsors’ business plans are taking longer than expected and they’re circling back to the debt markets to take advantage of cheaper capital. She noted that she’s seen more spread compression in light-transitional than heavy value-add transactions, however, with some lenders shying away from the deals that require heavy lifting. -
Single-Family Rentals Growing as an Institution-Owned Asset Class
Institutional ownership of single-family rental (SFR) homes in the United States has surpassed 240,000 homes owned, totaling nearly $40 billion of investment in the sector. In 2017, the number of SFR homes purchased by institutional investors increased year-over-year for the first time since 2013, and 2018 year-to-date purchases have thus far sustained the same pace as 2017, according to Amherst data. In our view positive macro tailwinds, supportive demographics and economies of scale have created an established foothold for institutional SFR operators to expand further in 2019.
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National Real Estate Investor – December 2018 -
2019 Market Outlook – U.S. Real Estate
Market Update – December 2018
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This paper examines real estate market fundamentals and key themes to watch in 2019. -
Stabilized top tier office most exposed to a potential slowdown in Manhattan
Commentary – October 2018
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o Manhattan and surrounding New York City metro employment is growing and office absorption has been positive – but at a weaker pace than a few years back o Shifting trends in co-working are reducing office space needed per employee and potentially increasing risk to the market o Significant supply on the horizon with the addition of Hudson Yards and other projects may exceed demand o Rents are showing signs of recent declines, and concessions are increasing o With tight cap rates, and less steady demand, equity investments in stabilized top tier office is exposed to a potential slowdown
Research and Analytics Team
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Sandeep Bordia Head of Research and Analytics
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Laurie Goodman Non-Executive Director of Research and Analytics1
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Jasraj Vaidya Senior Research Analyst
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Aaron Haan Research Analyst
1. Provided through a consulting agreement with Amherst Capital