821 M in 2005 Loans - Commercial Observer

The Insider’s Weekly Guide to the Commercial Mortgage Industry
In This Issue
1 $821M in 2005 Loans on Houston Galleria Mall Prepaid
1 Meridian Brokers $120M Loan for Cammeby’s 30 Park Ave Purchase
3 Morgan Stanley Finances Feil’s Upgrades to Union Square Properties
4 Sapir Taps Column Financial for Mondrian Soho Purchase
5 New York Life Lends on Water Garden Office Buildings
6 Amirian Group Gets Financing for West 21st Street Buy and Redevelopment
7 Kessner Family Acquires The Highlands at Rye With NYCB Loan
8 Angelo Gordon and City Center Realty Nab $50M Bridge Loan on Vegas Office
8 New Hampshire Retail Refis Through C-III Commercial Mortgage
$821M in 2005 Loans on
Houston Galleria Mall
Prepaid
The Galleria, a 2.3-million-square-foot mall
that is Houston’s most visited attraction, has prepaid $821 million in debt during an open prepayment period, Mortgage Observer
MOW
Weekly has learned.
EXCLUSIVE
A hefty portion of the debt was a
CMBS loan that was conservatively underwritten, with a 47.5 percent loan-to-value ratio and debt service
coverage ratio of nearly 2.73, according to
data from Trepp.
Indeed, in January, the CMBS data
service had warned that “if this loan can’t
refinance, the entire CMBS market will
be licking its wounds in 2015,” as the “wall of maturities” approached.
The borrowing entity is a joint venture comprised of Simon Property Group, Walton
“Ugait, cor in henim dit
eum ent euguer in verate.
“There is a
Ugait, cor in henim
definite slowdown
vullam nulput prat, sis
in the high-end
dit eum ent”
condo market”
—Name Here
—Adi
From
Q&A
page
FromChugh,
Name of
article
onon
page
X 12
Meridian Brokers
$120M Loan for
Cammeby’s 30 Park
Ave Purchase
Street Capital and an affiliate of CalPERS, the
nation’s largest public pension fund. The mall
features hotels, retail anchored by four national
chains and a private health club. Since the loan’s
securitization in 2005, Walton has exited the
asset, a representative for the firm said, selling the
retail to Simon in 2010 and the hotel portion in 2013.
It’s unclear if the current ownership
has yet refinanced the mall, though it
would seem likely, a source with knowledge of the market told MOW. Calls and
emails to the representatives for the
other borrowing entities were not returned by press time.
The prepaid financing consisted of a $580
A group of investors led by Cammeby’s
International Group borrowed $120 million from Ladder Capital, in a deal brokered by
Meridian Capital Group, to fund
MOW
the purchase of 30 Park Avenue
EXCLUSIVE
in Murray Hill, Mortgage Observer
Weekly has learned.
The real estate giant, run by Rubin Schron,
acquired the 20-story multifamily property from
BlackRock and the California pension fund
CalPERS for $194 million, a person familiar with
the matter confirmed.
One of the other investors in the deal appears
See Houston Galleria... continued on page 5
See Meridian Brokers... continued on page 3
The
LEAD
1 | march 20, 2015
CAN YOUR
BROKER DO THIS?
The Retail at 535 & 545 Fifth Avenue
$310,000,000
FIXED-RATE BELOW 4.00%
10
-YEAR LOAN
CMBS LENDER
FULL-TERM INTEREST-ONLY
535-545 Fifth Avenue
New York, NY
Two adjacent buildings
ZXM[VѝJLZWHJL
ZXM[YL[HPSZWHJL
Drew Anderman | Senior Managing Director
212.612.0236 | [email protected]
4LYPKPHU*HWP[HSJVT
MOW – CYBDT - $310MM – 535-545 Fifth Avenue – D. Anderman – 3-20-15.indd 1 2 | march 20, 2015
3/17/15 12:29 PM
Morgan Stanley
Finances Feil’s
Upgrades to Union
Square Properties
Morgan Stanley provided a $50 million
loan to the Feil Organization to cover recent upgrades to its two-building office and
retail property at 841-853 Broadway in
Union Square, according to records filed
with the city.
The more than 260,000-square-foot office
and retail property extends a full block between 13th and 14th Streets.
Having completed renovations on 841
Broadway in 2013, the landlord is now in the
process of renovating 853 Broadway’s retail
base. That upgrade, which includes a new lobby
and glass-curtain facade, is due for completion
by the end of the month, a person familiar with
the matter told Mortgage Observer Weekly.
Feil recently signed a 10-year lease with
Capital One for 15,000 square feet of retail space across three floors of the 21-story
building. The bank teamed up with a food retailer to roll out “a new store-within-a-store
concept” at the roughly 260,000-square-foot
property, that person said on the condition of
anonymity.
The new Capital One lease covers about
4,000 square feet on the ground floor of 853
Broadway, 5,000 feet on the mezzanine level
and 6,000 square feet below grade.
The Feil Organization also signed a 10-year
lease for 2,600 square feet with Santander
Bank at 841 Broadway last week, according
to the person in the know. Two ground-floor
retail tenants, Cosi and Cohen’s Fashion
Optical, are relocating upon their lease expirations and Santander will take roughly half of
the available 5,000 square feet of space.
Other tenants at 841-853 Broadway include
MAC Cosmetics, Chelsea Hotels, Max
Brenner, cloud services provider EMC and
digital advertising software developer Centro.
Representatives for the Feil Organization
and Morgan Stanley declined to comment.
—Damian Ghigliotty
Mondrian Soho hotel
Sapir Taps Column Financial for
Mondrian Soho Purchase
A group of investors led by Alex Sapir of
the Sapir Organization took a $180 million CMBS loan from Column Financial
to acquire the 263-room Mondrian
Soho hotel at 9 Crosby Street in Lower
Manhattan, public records show.
The billionaire real estate mogul and
his partners purchased the financially
troubled five-star hotel from Deutsche
Bank at a foreclosure auction in January,
as previously reported.
The recorded purchase price was
$200 million. Both the acquisition and
financing closed on March 6, according to
city records.
The Mondrian, which opened in 2011,
was part of the Morgans Hotel Group
until it went into foreclosure in 2013 with
more than $250 million in unpaid debt.
The luxury hotel contains a restaurant,
a 24-hour gym and a nightclub.
Mr. Sapir was not immediately available
for comment. A representative for Credit
Suisse subsidiary Column Financial declined to comment.
—Damian Ghigliotty
Meridian Brokers...continued from page 1
841 Broadway
to be Joseph Sitt’s Thor Equities. If not, the sale
may have been a quick flip, since Thor is cited in
city records as purchasing the building for $179
million. If Thor did sell its full interest in the building that fast, the firm made a $15 million profit in
doing so. A company spokesman declined to comment, citing a confidentiality agreement.
The five-year, interest-only loan from New
York-based Ladder has a fixed interest rate of 2.87
percent. Meridian Senior Managing Director Abe
Hirsch and Vice President Akiva Friend negotiated the financing.
The 236,000-square-foot property, located on
the northwest corner of Park Avenue and East
36th Street, contains more than 3,000 square
3 | march 20, 2015
30 Park Avenue
feet of ground-floor commercial space and a 142space parking garage.
BlackRock and CalPERS had purchased the
building from Rudin Management for $97.2
million in 2005, city records show.
—Damian Ghigliotty
CAPITAL PARTNERS LLC.
T
H
K
S
Construction
Joint
Ventures
Private
Equity
HKS
Bridge
Mezzanine
Debt
The ability to execute in this business depends on reliable access to capital.
HKS Capital Partners has closed more than $11.5 Billion
in transactions since April 2011.
Let us put our expertise to work for you.
127 West 24th Street, 2nd Floor, NY 10011 • (212) 254 1600 • www.hks.com
4 | march 20, 2015
Amirian Group Gets
Financing for West
21st Street Buy and
Redevelopment
Water Garden Office Park
New York Life Lends on
Water Garden Office Buildings
New York Life Real Estate
Investors lent $260 million to refinance two six-story office buildings in
Santa Monica, Calif., totaling 674,000
square feet, according to a company
press release.
Institutional investors advised by
J.P. Morgan Asset Management own
the two buildings, known as Water
Garden Office Park, Phase I.
Steve Kirk, senior director of
loan originations in the lender’s San
Francisco regional office, originated the 12-year, fixed-rate debt. HFF
Senior Managing Directors Mike
Tepedino and Paul Brindley and
Director Jennifer Keller arranged the
financing.
Houston Galleria...continued from page 1
million senior loan that was split into three pari
passu notes: a $290 million A-1 note included in
the securitization, a $197 million A-2a note and a
$93 million A-2b note (the latter two were not included in the securitization). The financing also
included two other loans: a $111 million B-note
(also not included) and, lastly, a $130 million subordinate companion loan included in the securitization as a non-pooled asset, Trepp analyst Sean
Barrie said.
The securitized portion of the loans—$290
million—made up 16.75 percent of the JPMCC
2006-CB14 deal and was set to mature in
December of this year, per Trepp data. The interest-only mortgage had a rate of 5.4 percent.
The mall, developed by local landlord turned national real estate titan Hines,
opened in 1970. Current anchor tenants include Neiman Marcus, Saks Fifth
The office park, which contains eight
glass buildings totaling 1.27 million
square feet and three levels of subterranean parking, was constructed in two
phases. Phase I was completed in 1990
and Phase II was completed in 2000, according to the property’s website. The
office buildings are located on 17 acres
of land.
“Water Garden is a top-tier office
park with excellent tenancy and is located in one of the strongest office markets in Southern California,” Mr. Kirk
said in a prepared statement. “We are
pleased to add such an excellent quality
property to our commercial mortgage
portfolio.”
—Damian Ghigliotty
Avenue, Macy’s and Nordstrom. Rents in the
submarket average around $23 per square foot,
according to loan docs.
According to loan documents, the mall boasts
an indoor skating rink as well as 375 other stores,
including a Prada—the only retail outlet for the
Italian designer in all of Texas.
In February of this year, The Houston
Chronicle reported that Simon was spending an
estimated $250 million to revamp the luxury
wing of the Galleria to retain top-shelf tenants.
While the rest of the market braces for the impact of the “wall,” the Galleria finds itself in an
enviable position. The mall commands the region in terms of ultra-luxury retail, which is one
segment of the market that’s remained relatively healthy.
“With rates being low across the board, any
attempt to refinance [the mall] would be a smart
move,” Mr. Barrie told MOW.
—Guelda Voien
5 | march 20, 2015
David Amirian of The Amirian Group
acquired a vacant, four-story building at 117119 West 21st Street for $28.5 million, with
plans to redevelop the brick-walled commercial property into luxury condominiums. The
total project is estimated to cost $54 million,
two people involved told Mortgage Observer
Weekly.
Little Rock, Ark.-based Bank of the Ozarks
provided a $30.5 million senior mortgage, arranged by Richard Horowitz of CooperHorowitz, to help fund the acquisition and
redevelopment. Mr. Horowitz also secured
$6 million in mezzanine debt from a newly
launched fund called Tall Pines Capital,
while Manish Majithia arranged the equity.
“The gut renovation of this property into
high-end condos will tap into the area’s strong
residential market, where prices have escalated from $1,500 to $2,500 and $3,000 per
square foot,” said Eastern Consolidated Vice
Chairman and Principal Brian Ezratty, who
brokered the sale. “Sales have skyrocketed in
this neighborhood and The Amirian Group is
perfectly situated to deliver an attractive, boutique offering along this great block.”
The acquisition closed on March 16. The
seller is listed in city records as New Yorkbased Alfa Development, which purchased
the building in May 2013.
The site, which sits on the border of Chelsea
and the Flatiron District, is comprised of 4,353
square feet of land and offers 44 feet of frontage. The property contains 38,612 buildable
square feet, allowing it to be redeveloped into
a single 12-story residential building featuring one townhouse unit, six full-floor units
and two duplex penthouses, according to Mr.
Amirian. Amenities at the new building will include a doorman, storage space and five on-site
parking spots, he said.
The New York-based design firm Grade
Architecture is drafting plans for the redeveloped property.
“We did not want to build the same product that has been seen over and over again,”
Mr. Amirian told MOW. “We felt that a unique
design and unique layout, providing full-floor
apartments, with the opportunity to have parking would be special.”—Damian Ghigliotty
117-119 West 21st Street
DEBT y EQUITY y MEZZANINE y INVESTMENT SALES
A C K M A NZI FF. COM
$125,350,000
Investment Sale &
Acquisition Financing
$112,000,000
Debt
Construction Financing
$70,000,000
Debt
Acquisition Financing
126 Units
Multifamily
80 Units
Condominium
15,565 SF
Retail
Brooklyn, NY
New York, NY
New York, NY
$67,500,000
Debt & Mezzanine
Acquisition Financing
$58,940,000
Debt
Acquisition &
Renovation Financing
$55,000,000
Debt
Refinancing
60,000 SF
Office Condominium
252 Units
Multifamily
721 Keys
Hotel Portfolio
New York, NY
Campbell, CA
Various Cities
ONE F IR M
CAPITAL F U E L E D B Y I NNOVAT I O N
S A N
B O S T O N | N E W Y O R K | M I A M I
F R A N C I S C O & L O S A N G E L E S O F F I C E S O P E N I N G
6 | march 20, 2015
S O O N
Kessner Family
Acquires The
Highlands at Rye
With NYCB Loan
The Highlands at Rye
Meridian Capital Group negotiated a $30 million loan from New York Community Bank to
help fund the Kessner family’s purchase of The
Highlands at Rye, a multifamMOW
ily property in wealthy Rye, N.Y.,
EXCLUSIVE
Mortgage Observer Weekly can exclusively report.
The new owners acquired the asset from R.A.
Cohen & Associates for $41 million on March
12, according to two people with knowledge of the
transaction.
The seven-year acquisition financing from NYCB
carries a fixed interest rate in the mid-3 percent
range, two years of interest-only payments followed
by a 30-year amortization schedule and a five-year
extension option. Meridian Managing Director Tal
Bar-Or negotiated the debt deal.
“We are pleased to have been able to work with
Steve Kessner and Michael Kessner on the purchase of one of the best multifamily properties in
Westchester County in addressing their needs in a
complicated 1031 exchange,” Mr. Bar-Or said. “With
this new ownership in place, the property will only
improve and stand out as a best-in-class option for
rentals in one of the most prestigious communities
in the greater New York area.”
The Kessner family could not be reached for comment. Representatives for R.A. Cohen did not return
requests for comment.
The Highlands at Rye is comprised of two fourstory buildings totaling 108 units and 7,600 square
feet of commercial space. The rental property, at 131151 Purchase Street, was recently renovated.
Rye—the youngest city in New York State and one
of the most affluent, according to U.S. Census data—has two miles of coastline along the Long Island
Sound. Rye ranked as the third most expensive city
in terms of home prices in a 2010 Coldwell Banker
report.—Damian Ghigliotty
Angelo Gordon and City Center Realty Nab $50M Bridge Loan on Vegas Office
A partnership of City Center Realty
Partners and investment advisor Angelo,
Gordon & Co. received a $50 million bridge
loan on Bank of America Plaza,
MOW
a Las Vegas office building.
EXCLUSIVE
The pair bought the 16-story
Class A tower in 2010 for $64
million. The pair recently completed major
improvements to the structure.
Prime Finance, an active debt fund that focuses on transitional assets, provided the loan,
according to broker CBRE.
Shawn Rosenthal, executive vice president
in CBRE’s Midtown Manhattan office, and Bob
Ybarra, vice president in CBRE’s Las Vegas office, worked together on the transaction.
Bank of America Plaza, one of Vegas’ premiere office towers, boasts 270,234 square feet
at 300 South 4th Street.
The office leasing market in Las Vegas has
been slow to recover from the recession, according to market reports.
“The recovery has not been particularly stable or powerful despite greatly improved employment numbers,” reads a fourth quarter
market report on Southern Nevada office leasing from Colliers International. Average asking rates in the market in that period were a
mere $1.90 per square foot, that report shows.
“The transitional bridge loan will be used to
refinance existing debt and provide for future
leasing costs to bring the asset back to stabilization,” said Mr. Rosenthal in a statement to
Mortgage Observer Weekly. “The recent investment in the lobby and ground floor retail,
coupled with a strong improving market bodes
well for the ownership and the future of this
great tower.”—Guelda Voien
7 | march 20, 2015
Bank of America Plaza
invites you to attend
Upgrade New York: Technology, Energy Efficiency,
and Meeting the Needs of NYC's TAMI Tenants
PANELISTS & MODERATOR
ANDREW KIMBALL
CEO,
Industry City
ANTHONY MALKIN
Chairman and CEO,
Empire State Realty
Trust, Inc.
DAVID R. POSPISIL
SACHA ZARBA
JONATHAN MECHANIC
Manager,
Executive Vice President,
Chairman of Fried Frank’s
Commercial & Industrial
CBRE Group, Inc.
Real Estate Department,
Energy Efficiency Programs,
Fried Frank
Con Edison
THURSDAY, APRIL 23RD
7:45AM-10AM
Empire State Building | 350 Fifth Ave, 34th St Entrance
Questions? Call 212 407 9351
PURCHASE TICKETS AT COBREAKFAST.COM
New York's newest tenants are demanding space as nimble, efficient, and functional
as the way they do business. Join the Commercial Observer this April to discuss
how the industry is adapting to provide ample fiber to these sought-after occupants
wanting energy efficient buildings and like-minded, green-spirited neighbors.
For sponsorship information,
please contact Robyn Reiss at
[email protected]
or 212 407 9382
8 | march 20, 2015
A T.J. Maxx, a Rite-Aid Pharmacy and a Planet Fitness
New Hampshire Retail Refis Through
C-III Commercial Mortgage
REL Commons refinanced its retail
portfolio with $16.5 million through C-III
Commercial Mortgage, according to a
representative for Berkadia,
MOW
which originated the loan.
EXCLUSIVE
The 10-year, fixed-rate loan
is backed by three retail properties in New Hampshire which comprise
the REL Commons portfolio: Spaulding
Related Companies announced
that Jennifer Tuhy has been
named Chief Financial Officer of
Hudson Yards. She will oversee
all finance and accounting aspects
of Hudson Yards, the largest private real estate development in
American history.
Ms. Tuhy was previously a senior vice president in accounting
and finance at Related, where she
managed a 150-person organization responsible for overseeing all
of Related’s accounting, reporting,
budgeting and forecasting for development projects. She joined the
firm in 2001.
Prior to her work with
Related, Ms. Tuhy worked at
Tishman Speyer Properties
and PricewaterhouseCoopers.
Commons in Rochester, N.H., Exeter
Commons in Exeter, N.H. and Littleton
Commons in Littleton, N.H.
Berkadia Senior Vice President Nick
Cassino handled the transaction for N.H.based landlord REL.
The properties’ major tenants include
T.J. Maxx, Rite Aid and Planet Fitness.
“All three properties have a history of
Workforce
She is a graduate of Bucknell
University.
CBRE expanded its debt and
structured finance practice to the
greater Philadelphia region, the
firm announced last week.
Steven Doherty was appointed senior vice president and will
lead the team. Based in the Wayne,
Penn., office, Mr. Doherty has nearly
30 years of experience in commercial real estate financing. In his new
role, Mr. Doherty will report to Mike
Riccio, Senior Managing Director
and Co-Head of Production, CBRE
Capital Markets.
9 | march 20, 2015
strong occupancy due to excellent management and strategic locations,” Mr. Cassino
said via email. “Using our access to various
sources of capital, as well as our team’s deep
knowledge of the Northeast real estate market and retail industry expertise, we were
able to deliver an attractive loan with flexible terms that addressed our client’s needs.”
—Guelda Voien
“Bringing Steve on board begins an exciting new venture here
in CBRE’s Philadelphia region,”
said CBRE Executive Managing
Director Bob Walters in a statement from the firm. “Having already established a solid debt team
in our Pittsburgh office, we are now
in a strong position to launch our
Philadelphia practice.“
Mr. Doherty joins CBRE from
Remington Investments, where he
has spent the past three years as partner. Prior to Remington, Mr. Doherty
spent 11 years at Berkadia as comanager of the firm’s Philadelphia
office, the statement said.
He received an M.B.A. from St.
Joseph’s University and a bachelor’s degree from the University of
Pennsylvania.
Productions of New York Real Estate TV
“The Stoler Report-Real Estate &
Business Trends in the tri-state region”
“The Stoler Report-NY’s Business Report”
www.thestolerreport.com
now in its
Celebrating its 14th anniversary is a lively
12th season is a weekly panel discussion
panel discussion hosted by Michael
featuring real estate and business
Stoler. More than 1600 individuals have
leaders.
participated on the lively panel
discussion.
w
The Stoler Report airs 8 times a week in New York City on CUNY TV. Each
new broadcast debuts on Tuesday 2 AM, & 11 PM, Wednesday, 8:30 AM,
2:30 PM & 10:30 PM, Friday, 5:30 AM, Saturday 12 Midnight & Sunday
10:30 AM.
Building New York-NY Life Stories airs 8 times a week in New York City on
CUNY TV. Each new broadcast debuts on Monday at 10:30 AM, 4:30 PM &
10:30 PM, Wednesday at 5:30 AM, Thursday at 11:30 PM, Saturday 12
Noon, Sunday at 12:30 AM & 10:30 AM.
Both shows also air on White Plains Community Media, airing 4 times a
week and HomeTowne TV in thirty seven cities in New Jersey airing 8
times a week.
These programs are hosted by Michael Stoler, President of New York Real
Estate TV, LLC, Managing Director of Madison Realty Capital, real estate
commentator for 1010 WINS AM.
10 | march 20, 2015
Building New York-New York Life Stories
with Michael Stoler profiles lives of
individuals from the region. The show
which is currently in its 10th season has
profiled the lives of more than 250
individuals.
www.thestolerreport.com
www.buildingnewyork.nyc
www.michaelstolertelevision.com
www.itunes.com
www.youtube.com
www.cuny.tv
All past broadcasts can be viewed on “The
Stoler Report App” for
Iphone/ipad at Apple App Store
Android Devices at Google Play
The Stoler Report & Building New
York: NY Stories
Now air in
New York City on CUNY TV
East Hampton & Montauk on WEGTV
White Plains Community Media
Hometowne TV in New Jersey
The Takeaway
“The big story coming from NYC last week was the sale of the Belnord Apartments for $575 million to HFZ Capital,” said Sean Barrie, an analyst at Trepp. “The $375 million loan for the multifamily property was one of the largest pro forma CMBS loans issued in 2006, and the sale
likely means the loan will pay off at par. The sale represents an epic turnaround for a loan that was sent to special servicer and, at one point
carried an appraisal reduction of $134 million. In other pro forma/large apartment news, the Stuy Town pool was issued an appraisal reduction for over $674 million this month. Two different stories for two similar loans…”
Source:
Balance ($)
Loan Name
City
Prop.
Type
Delinquency
Status
FCL Start
Date
REO Date
Origination
Date
Maturity
Date
3,000,000,000
Peter Cooper Village &
Stuyvesant Town Pool
New York
MF
REO
20140603
20140603
20061117
20161208
225,000,000
Riverton Apartments
New York
MF
REO
20090202
20100311
20061221
20120101
33,641,771
The Shoreham Hotel
New York
LO
Foreclosure
20061101
20161111
31,000,000
1865 Burnett Street
Brooklyn
MF
REO
20070215
20120301
30,000,000
300-318 East Fordham
Road - A note
Bronx
RT
90+ Days
20070301
20170311
25,699,964
1604 Broadway
New York
RT
REO
20070329
20120401
24,249,142
Cross Island Plaza
Rosedale
OF
90+ Days
20060810
20160811
14,660,879
110 West 32nd Street
New York
MU
Non-Performing
Beyond Maturity
20040818
20140901
9,722,586
4234 Bronx Boulevard
Bronx
OF
90+ Days
20070515
20170601
6,651,818
75 Spring Street
New York
OF
Non-Performing
Beyond Maturity
20140714
20040123
20140201
5,507,843
770 & 780 Garden Street
Bronx
MF
REO
20091203
20070901
20170901
5,444,518
1500 Astor Avenue
Bronx
OF
Foreclosure
20040714
20140811
4,579,226
47-30 29th Street
Long Island City
SS
Non-Performing
Beyond Maturity
20041025
20141111
2,621,852
509 212th Street
New York
MF
REO
20071101
20171101
1,917,201
1735 Lafayette Avenue
Bronx
MF
Foreclosure
20090422
20061121
20131201
1,878,035
3126 Coney Island Avenue
Brooklyn
MF
Foreclosure
20130130
20050913
20121001
1,520,030
166-33 Jamaica Avenue
Jamaica
RT
Non-Performing
Beyond Maturity
20041115
20141201
TOTAL: 3,424,094,862
20090227
20120629
20121106
20120702
COMMERCIALOBSERVER.COM
11 | march 20, 2015
Q+A
Adi Chugh
Founder and Managing Partner of
Maverick Capital Partners
Mortgage Observer Weekly: How
did you get your start?
Adi Chugh: My background is in investment banking, and with a strong
understanding of finance, I was able
to recognize that many opportunities
stem from distress. In 2008 and 2009,
I began to notice many real estate opportunities and a distress niche in the
borrower community. At the time, I
began arranging capital on very complicated transactions. Based on this
experience, and along with Managing
Partner David Rosenberg, I created Maverick Capital Partners in early
2011. We built our business on integrity and trust with our clients, ensuring that they would want to do business
with us for the long run. In my experience, I have learned that when you see
people through the bad times, they want
to include you and work with you in
their better times, and we have seen that
transition in the past 4-5 years.
Your firm has been described as
“under the radar.” Can you tell us
why you have taken that approach?
From the advisory firm perspective, we
believe in customized solutions through
a strategic and need-based approach. We
want to attack multiple projects with the
same clients, which allows us to grow organically. By working with select clients,
we have been able to build a solid track
record and client trust that allows for
referrals to new opportunities. We have
been able to grow a successful portfolio
through excellent results, rather than notoriety, and have reached a point where
we now feel comfortable discussing our
success on a more public level.
What type of clients do you
target?
Since I founded Maverick Capital
Partners in early 2011, we have had a varied group of clients that we target and
work with. Our focus has always been to
optimize transactions throughout the
capital stack. We currently have clients
from all across the development spectrum, from small boutique companies,
321 West 44th Street,
New York, NY 10036
212.755.2400
Guelda Voien
Editor
Damian Ghigliotty
Senior Reporter
Cole Hill
Copy Editor
Barbara Ginsburg Shapiro
Associate Publisher
Miguel Romero
Art Director
Lisa Medchill
Advertising and Production Manager
Adi Chugh
to some of the biggest players in New York
City real estate. Our work includes individual
deals ranging from $25 million to $1 billion.
What’s the most interesting deal
you’ve worked on recently?
We have many exciting deals that we have
been a part of and are currently working on.
One of the most interesting deals we have
worked on recently is a high-end condo
construction loan at 172 Madison. Located
at the northwest corner of 33rd Street and
Madison Avenue, it was deal bought out of
bankruptcy, and we were able to facilitate a
quick closing on land acquisition. We were
then able to arrange and advise the borrower on a high-leverage 85 percent plus
LTC loan without having to dilute any of the
sponsor’s equity.
What trends do you see in the market? Do you think there is a bubble in
New York City?
Land values in Manhattan have reached
almost unrealistic levels in sub-par locations and that has led to lenders pulling
back on the amount of leverage they are
willing to provide. In addition, there is a definite slowdown in the high-end condo market, and it appears that this will be a trend
for the foreseeable future. The good news is
that the discipline of lenders will eventually
help by placing downward pressure on land
values, allowing borrowers to become more
realistic.
12 | march 20, 2015
OBSERVER MEDIA GROUP
Jared Kushner
Publisher
Joseph Meyer
CEO
Michael Albanese
President
Ken Kurson
Editorial Director
Robyn Reiss
Vice President of Sales
Thomas D’Agostino
Controller
Laurence Rabinowitz
General Counsel
For editorial comments or to submit a
tip, please email Damian Ghigliotty at
[email protected].
For advertising, contact Barbara
Ginsburg Shapiro at bshapiro@observer.
com
or call 212-407-9383.
For general questions and concerns,
contact Guelda Voien at gvoien@
observer.com
or call 212-407-9313.
To receive a trial subscription to
Mortgage Observer Weekly, please call
212-407-9371.