Toby Cobb (left), Justin Kennedy (top right), and Jonathan Roth.
Toby Cobb, Justin Kennedy and Jonathan Roth
Managing partners and co-founders at 3650 Capital
Last year's rank: 48
The founders of 3650 REIT changed the name of their firm last year to 3650 Capital. With a variety of offerings and credit sources, they felt it better reflected the firm’s true purpose and value.
Starting last year, the firm expanded its offerings to encompass three separate investment strategies: Stable Cash Flow, which offers long-term, fixed-rate financing; Real Estate Credit Solutions, which involves short-term, value-add financing; and Special Situations, which focuses on equity and structured capital solutions for broken capital structures, loan purchases and value-add business plans.
This is the structure that the firm believes provides incentives for optimal outcomes.
“The launch platform is the Stable Cash Flow lending platform, where we are using the CMBS capital markets to finance our equity in a whole loan pool. So, in essence, we are very much a fixed-rate CLO issuer,” said Toby Cobb, one of 3650’s three managing partners.
“That’s different than everybody else in the CMBS industry,” Cobb added. “Everybody in the industry is working for arbitrage profits. They make a loan, they sell the loan, and then they wash their hands of that credit. 3650 is actually originating loans, issuing the senior securities — AAA, AA and A — and keeping BBB and down. We’re keeping the equity in the deal. We don’t make arbitrage profits here. If there is excess yield, it goes to our investors.”
The firm’s transactions en route to $730,775,050 in originations over the past 12 months included a $103 million mezzanine investment for a 12-asset multifamily portfolio in the Southern U.S.; a $113 million loan for the refinancing of Brookview Commons, a multifamily property in Danbury, Conn.; and a $74 million construction loan to build One Kane Concourse, the only trophy office property on Miami’s Bay Harbor Islands.
Cobb said he and the other founders of 3650 Capital, Justin Kennedy and Jonathan Roth, look forward to continuing to grow through their new capabilities in 2025.
“We’re super proud of our existing track record. We have no losses in our portfolio,” said Cobb. “Credit will continue to be the No. 1 focus of the firm, and applying that credit discipline across all three of our platforms.”
