6 minute read
Mandala Masters the Market
Rocco Mandala
Vice Chairman, Capital Markets, Debt & Structured Finance, CBRE
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In the U.S. in 2019, $2.3 trillion flowed through the capital markets to business entities in search of funding, according to the Securities Industry and Financial Markets Association (SIFMA). CBRE’s Capital Markets Division, “the #1 ranked brokerage firm globally,” according to the company’s website, participated in 6,535 transactions, across $98 billion in U.S sales volume and $50.1 billion in U.S. financing volume in 2019. A 25-year veteran of the firm, Rocco Mandala, vice chairman, Capital Markets, Debt & Structured Finance (DSF), has contributed immensely to the growth and success of DSF production nationally. “We hold a 16.9% share of U.S. capital market deal flow,” he says. “Our Phoenix team specialty is financing for all incomeproducing properties including multifamily, industrial, office, retail, etc. CBRE multifamily research indicates that Phoenix ranked sixth for 2020 investment with an impressive $6.4 billion in deals.”
Starting Points
Mandala’s performance record at CBRE is simply stellar with over $10 billion in deals completed during his tenure. His success in managing originations has earned him over a dozen Top 10 Percent Producer, and 10 CBRE Colbert Coldwell Circle (Top 100 Producer in the Americas) accolades and a ranking in the Top 25 (1%) nationally for all disciplines including sales and debt. “Relationships are the key to success in the industry, and they take time to develop. My approach has always been to earn my way into a relationship,” he says. “I very much enjoy the mortgage banking process that affords the opportunity of developing close relationships with owners, lenders and equity providers as well as third-party professionals that support the underwriting.”
Background
While attending Arizona State University, Mandala scripted out a plan for his future. “As my family background was extremely modest with parents that did not go to high school, I wanted to be economically successful and able to financially take care of myself in the future,” he says. “With this desire in mind, I majored in finance. I also quickly realized that financial success was frequently achieved by those who invested in real estate, hence I wanted to combine those two focus areas.”
After graduation, Mandala landed an early opportunity at Great Western Bank, where he learned the nuts and bolts of credit. Next up, a stint at H.S. Pickrell Company, and his foray into commercial real estate financing. “Pickrell served as a correspondent to many life-insurance companies and pension funds that made permanent loans on income-producing properties,” he says. “I soon got to study a variety of other sources of debt capital for CRE, and my mortgage banking career accelerated.”
Subsequent to his time at Pickrell, Mandala assumed ever-increasing roles of responsibility at Boston Mortgage Company and Mellon Financial Services before landing at CBRE. “My focus has always, and continues to be, providing quality helpful work to a client. If we happen to win the assignment, it is considered icing on the cake,” he says. “Developing the skills to balance the needs of the parties involved, in order to bring a deal together, is fun and rewarding. These relationships build over time and are extremely important for continued success.”
Multifamily
By now, it should come as no surprise that CBRE also leads its peers in multifamily. “The #1 ranked apartment brokerage firm globally and in the U.S. with U.S. sales and financing volume of $33.3 billion and $30.4 billion respectively,” according to the company’s website. “As in the industrial space, multifamily has performed extremely well given the abundance of equity and debt capital for these property types,” he says. “Lower capitalization rates on these property types should continue given strong demand and historically low interest rates and cost of capital.”
Phoenix Multifamily
The Valley’s multifamily environment remains one of the nation’s brightest stars with a surging population influx into the state, an affordability index outcompeting neighboring metros and dynamic economic growth. “Phoenix continues to benefit from population growth (1.83% average annual growth from 2018-2020), which is contributing to ongoing rent growth and value appreciation,” he says. “Quarter Four vacancy was less than 4%, as rent growth has averaged 5.3% annually over the last three years. Robust growth keeps demand high, as the Phoenix metro population rose to 4.6 million in 2020 and will remain one of the top U.S. growth markets.”
From a peer metro perspective, Greater Phoenix is positioned perfectly to outperform in 2021. “The CBRE research team considers Phoenix the second-best market for investment in 2021, behind the Inland Empire (California), and ahead of Atlanta (3rd) and Indianapolis (4th),” he says. “Even as apartment rents continue to increase, as growth is expected to average more than 4.6% annually over the next three years, Phoenix remains an affordable place to live. Our average contract rent ranges between 19.8% to 23.8% of the area’s average household income, depending on the submarket, with an average of 20.3%.”
CBRE Team
Surrounded by a talented roster of CRE professionals (Anthony Valenzuela, Dominique Damerell, Joshua Manelis),
—Rocco Mandala
Anthony Valenzuela, Dominique Damerell, Rocco Mandala, Joshua Manelis
Mandala believes 2021 will be another expansionary year for the brand. “Our team plan is to continue to grow with a focus on long-term success through originating debt and equity financing opportunities,” he says.
Long-term success starts with a team that successfully collaborates. “Our team dynamic is outstanding. Each member of the team is important and contributes meaningfully to our success,” he says. “I am fortunate to have a team that works extremely well together.”
The mission for Mandala is always the same: Take care of the client above all else. “I’d say a big part of his success is the work he puts in, but also that he’s fair,” says Damerell. “He goes about things the right way, which makes his clients trust him.”
Community
As with so many of the Valley’s elite CRE professionals, Mandala takes pride in giving back to the community and improving the lives of its residents. His work at New Pathways for Youth, a non-profit dedicated to mentoring and improving the lives of over 400 youth, demonstrates this commitment. “Rocco’s charity efforts really speak a lot to his character and world view,” says Manelis. “Working to make a difference is an important part of my life,” Mandala says.
COVID-19
Navigating the pandemic has brought its share of challenges and opportunities for Mandala and team. Workflows are different, technology is front and center, but the goal remains the same: client satisfaction. “COVID-19 has brought our team closer together,” says Valenzuela. “We are in constant communication, whether it be online or via Zoom and conference calls.” Mandala adds, “I believe that our COVID-19 experience may have opened up new ways to live and work that are positive in supporting continued success and growth while enhancing our lives.”
Future
With 2019 and 2020, the team’s best years on record, Mandala expects a similar trajectory for 2021. “My best prediction is that my team will continue to work hard and remain focused on increasing performance for clients, to provide the best financing available that meets their objectives.”
- Rocco Mandala
