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BayBridge Real Estate Capital Announces Addition

NEW YORK, January 28, 2021 – BayBridge Real Estate Capital, a company of Berkowitz Pollack Brant Advisors + CPAs, today announced that 40-year real estate and capital markets veteran Mark Niman has joined the firm as executive managing director.

Niman has a wealth of experience executing transactions and representing clients throughout the United States, Canada, South America, Europe and the Middle East in all asset classes.  His career has been built on strong lender relationships and his clients are in all sectors of commercial real estate, including multi-family, student housing, hotels and resorts, casinos, industrial, self-storage, retail and office buildings.

Director of BayBridge Real Estate Capital Jay Miller commented, “I’ve known Mark most of my career and I know he will be a great asset to the firm. The fact that he recently secured a $32.5 million hotel bridge loan, in this highly challenging market, is indicative of his abilities. This loan was sourced, underwritten, and funded in 30 days.”

Niman’s accomplishments during his career include twice procuring financing for one of the largest malls in North America, structuring and obtaining more than $4 billion in hotel financings throughout the United States and the Caribbean, and securing multi-billions in acquisition, construction, bridge and permanent financings for all real estate asset classes.  Most notably, Niman has brokered one of the largest transactions of all time when he arranged a $3.1 billion loan for his client’s acquisition of Aztar Corp. the then-parent of Tropicana Hotels and Casinos.

He will be based in the firm’s New York City office.

About BayBridge Real Estate Capital

The BayBridge Real Estate Capital team has a long history of bringing institutional capital to markets across the U.S.

An affiliate of Berkowitz Pollack Brant Advisors + CPAs, BayBridge helps developers and investors find the financing they need for a broad range of commercial real estate projects, with a focus on structured finance. The firm has offices in Miami, Ft. Lauderdale, Boca Raton, West Palm Beach and New York City.

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Media Coverage

The Real Deal – Invesca Lands $50 Million Refi on Pompano Beach Apartments

 

https://therealdeal.com/miami/2020/11/13/invesca-lands-50m-refi-on-pompano-beach-apartments/?utm_source=internal&utm_medium=after_article&utm_campaign=related_article

Invesca lands $50M refi on Pompano Beach apartments

Madison Realty Capital provided the refi, as well as a $102M construction loan in April

Miami /
November 13, 2020 04:30 PM
Christopher Longsworth and Josh Zegen, with Envy is at 475 SE 1st St, Pompano Beach

Christopher Longsworth and Josh Zegen, with Envy is at 475 SE 1st St, Pompano Beach

UPDATED, Nov. 16, 3:55 p.m.: Invesca Development Group landed a $50 million loan to refinance Envy Pompano Beach, a 214-unit, 11-story rental building.

Madison Realty Capital, led by Josh Zegen, originated the loan for the building at 475 Southeast First Street within the Koi master-planned community, according to a press release.

In April, New York-based Madison Realty provided Plantation-based Invesca with a $102 million construction loan for Envy and Pixl Apartments in Plantation. Invesca is led by Christopher Longsworth.

Invesca has completed construction and has leased up 50 percent of the building, according to the release.

Jay Miller, Spencer Miller and AJ Felberbaum of BayBridge Real Estate Capital arranged the financing.

Envy has three floors of commercial space and eight floors of residential space, with studios, one-, two- and three-bedroom apartments. Amenities include a rooftop pool, pet spa and outdoor movie theater.

Invesca scored a $28 million construction loan for Koi Residences & Marina in 2017.

Other proposed multifamily projects in Pompano Beach include Grover Corlew’s 355-unit mixed-use multifamily development along Atlantic Boulevard, and a 138-unit development called Highland Oaks by Coral Rock Development Group and Paragon Group of Florida.

In October, Madison Realty Capital closed on the remaining unsold condos in Costa Hollywood Beach Resort for $43 million. The firm also brought on a new partner for the industrial-to-office conversion of the Whale Square office building in Sunset Park in Brooklyn.

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Bylines

BayBridge Real Estate Capital Secures $50 Million Bridge Loan

The Commercial Observer recently wrote about our firm’s involvement in a $50 million bridge loan for Envy Pompano Beach by Madison Realty Capital.

Madison Realty Capital Provides $50M Bridge Loan on Luxe Florida Rental Project

 

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Capital Markets Update November 2, 2020

As we enter the last quarter of the year, we are starting to see more movement in the market.  There are some distressed transactions starting to take place and in the preferred asset classes we are starting to see more efficient capital enter the market.

Over this past real estate cycle most of the residential real estate markets have focused on multifamily and condominium’s, with a real emphasis on urban infill locations.  We have started to see over the past couple of quarters the focus turn to single family housing, both for sale and for rent properties.

We at BayBridge Real Estate Capital are currently bringing unique capital solutions to clients that are developing single family lots, for rent communities and for sale communities.  As institutional capital is warming up to this asset class, we are working with our clients to tailor unique financing structures and facilities in this space.

For many of our clients we are helping them solve for the lack of mid-priced capital in the market.  Currently there are very low interest rates for some properties that fit into a very narrow box, in many cases if a deal is outside of that box the cost of capital soars to the higher yields quickly.  We are helping these clients to secure more moderately priced capital or helping them create structures that are still accretive to their equity.

In the distressed market the bid ask is still wide, that being said we are starting to see some distressed assets trade.  The most notable trade is the Coloney Capital Hotel portfolio which was sold for just over the cost of their debt.  This is a meaningful transaction since it is helping to define the value and determine asset values in the hotel space.

A key difference to note in this current Covid-19 economic crises compared to the most recent financial crisis of 2009, is that there is a tremendous amount of capital raised. This capital has for the most part has been sitting on the sidelines waiting for distressed opportunities or for the market to adjust and largely discount asset values. The market has been fairly resilient to date in terms of discounted asset prices. This is forcing the sidelined capital to moderately creep back into the market with more realistic expectations.

As you look towards the end of the year, we welcome the opportunity to help you plan your capital needs.

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Bylines

Capital Markets Update May 27, 2020

Over the past couple of weeks, we have started to see the market stratify risk and value.  At the beginning of the economic crisis we observed that it was difficult for any capital provider to put out money because the market couldn’t predict what values would be across any asset class or business plan.

Over the past three weeks the market has started to bifurcate how it looks at risk – both defensive and distressed.  The defensive asset classes have started to see more traditional capital creep back into the market.  The distressed asset classes are starting to see some capital begin to move off of the sidelines and look at transactions.

In the more defensive asset classes, such as multi-family, industrial and self-storage, we are seeing signs of life for the market returning to a healthier state.  The market is starting to price bridge loans in a more efficient way and some lenders are considering construction projects again.

We have also started to see movement in the CMBS market.  A couple of securitizations have been taken into the market, with all top-tier credit.  It looks like CMBS will start to be active again over the next couple of months.  Most lenders are indicating that leverage is going to be lower than it previously was, debt service reserves will be required and only very stable assets will be considered.

For the more distressed asset classes, such as hotels and retail, we are starting to see signs of life for financing.  Previously the only financing available was for groups looking to buy distressed debt or distressed assets.  We have started to see some preferred equity sources and bridge lenders that will look at capitalizing some of these projects for the existing ownership.  This is still a thin market, as there is only a handful of capital providers, but the fact that there is capital looking to deploy into these distressed assets is a good sign.

Some loan sales have taken place. We are currently arranging note-on-note financing for a couple of our clients.

One thing that is clear today is that even though there is great distress, unlike in 2008 there is a lot of capital on the sidelines.  There are tens of billions of dollars waiting to deploy.  Once the distress transactions really start to happen there will be lots of money chasing them.

This should mean that the market will define value fairly quickly.  Once value is defined, both the debt and equity markets will become more efficient.

 

For our clients at BayBridge Real Estate Capital, we are working with them on global capital strategies.  We are looking at creative ways to make sure their business plans are going to stabilize or are capitalized to grow through this downturn.

For all of the transactions we are working on now, structure has become as important as leverage and rate.  Clients can really win through creative structures and unique capital stacks.

As you look through the summer and toward the end of the year, we welcome the opportunity to help you plan your capital needs.

 

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Press Releases

BayBridge Real Estate Capital Brokers $102 Million Loan

Multifamily construction project closed during challenging

economic environment

NEW YORK, April. 30, 2020 – BayBridge Real Estate Capital, an affiliate of Berkowitz Pollack Brant Advisors + CPAs, today announced it brokered a $102 million construction transaction which closed this week.

Plantation-based developer Invesca will use the loan provided by New York-based Madison Realty Capital to complete Pixl, a virtual reality themed mixed-use project in Pompano Beach.

Jay Miller, managing director of BayBridge Real Estate Capital, commented, “We are thrilled to have completed this transaction at such a challenging time in our economy. We believe it will be one of the last big construction transactions until the economy bounces back.

“Our team worked closely with the developer to complete a create financing deal that met everyone’s goals.”

Jay Miller and Spencer Miller of BayBridge Real Estate Capital brokered the deal.

Planned for completion in early 2022, Pixl is located at 4400 S. Sunrise Blvd., and will include 330 loft-style apartments with smart-home features.

About BayBridge Real Estate Capital

 The BayBridge Real Estate Capital team has a long history of bringing institutional capital to markets across the U.S.

An affiliate of Berkowitz Pollack Brant Advisors + CPAs, BayBridge helps businesses, developers and investors find the financing they need for a broad range of commercial real estate projects, including acquisitions, construction and value-add development.

 The firm has offices in Miami, Ft. Lauderdale, Boca Raton, West Palm Beach and New York City.

 

 

 

 

 

 

 

 

 

 

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Media Coverage

The Real Deal – Invesca scores $102M construction loan for two SoFla apartment projects

 

https://therealdeal.com/miami/2020/04/29/invesca-scores-102m-construction-loan-for-two-sofla-apartment-projects/

Invesca scores $102M construction loan for two SoFla apartment projects

The loan will be used for a 214-unit project in Pompano Beach and a 330-unit development in Plantation

The Real Deal MIAMI /

April 29, 2020 09:45 AM

By Keith Larsen

Invesca scored a $102 million loan from Madison Realty Capital for two South Florida multifamily projects during the coronavirus pandemic.

Plantation-based Invesca secured the loan from the New York-based lender to finish construction on a 214-unit apartment project in Pompano Beach and to begin construction on a 330-unit multifamily development in Plantation, according to a release.

The Pompano Beach property is 1.6 acres at 452 East Atlantic Boulevard, and is 98 percent complete. With two buildings connected by a skybridge, it will total over 450,000 square feet when finished. The development also includes 12,000 square feet of retail space and 362 parking spaces, according to the release.

The Plantation property will span 12.3 acres at 4350 West Sunrise Boulevard. It will include eight, nine-story buildings with 720,000 square feet. The development will also consist of a 30,000-square-foot commercial building, a 1.1-acre office property, 10 townhomes that are already completed, and 37 approved additional townhome lots, according to the release.

Jay Miller of BayBridge Real Estate Capital brokered the transaction.

Madison Realty Capital is becoming more active in South Florida’s real estate market, especially in Broward and Palm Beach counties.

In December, the company provided a $210 million construction loan for Fort Partners’ Four Seasons Hotel and Private Residences in Fort Lauderdale.

In July, the lender provided a $225 million construction loan to Penn-Florida for The Residences at Mandarin Oriental in Boca Raton.

In total, Madison Realty Capital has completed about $12 billion in equity and debt transactions since 2004, according to its website.

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Media Coverage

South Florida Business Journal – Invesca Obtains Construction Loan for Pixl

https://www.bizjournals.com/southflorida/news/2020/04/29/invesca-obtains-construction-loan-for-pixl-apts.html

 

By Brian Bandell  – Senior Reporter, South Florida Business Journal

Ivesca overcame challenges of obtaining construction financing during an economic downturn by nabbing a loan for two Broward County projects.

The $102 million construction loan will help the Plantation developer put the finishing touches on the Envy apartments in Pompano Beach and begin work on Plantation’s Pixl apartments, which will have a virtual reality theme.

Madison Realty Capital affiliate 4350 W. Sunrise Blvd 1 LLC awarded the mortgage to Pixl Development and Envy Development, both affiliates of Invesca.

“We were halfway through this transaction when the financial world started to fall apart,” Invesca CEO Christopher Longsworth said. “Josh Zegan, Mark Simon and Mark Gormley worked with us around the clock to create sophisticated solutions to the constant obstacles that were presented. For a lender of this size to be agile enough to pivot and navigate through the real time challenges, was really impressive and the reason this deal closed in these uncertain times. The skill and market intelligence that Jay Miller brought to the table in arranging the financing was second to none.”

 Miller, the managing director of BayBridge Real Estate Capital, said many banks have been reluctant to make construction loans during the Covid-19 pandemic. Banks are holding onto their cash liquidity as deposit accounts fall because their clients are losing money, he said.

Madison Realty Capital had a ton of available cash and was confident in Longsworth because of his successful track record as a developer,’ Miller said.

“Envy is an absolutely spectacular property and Pixl will be the same,” Miller said “Everything he brings is off the charts. If you are going to do a deal in an economic downfall, the kind of person you’d want to make it with his Chris.”

Located at 4400 S. Sunrise Blvd., Pixl will have 330 apartments. They will range from 800 to 1,622 square feet, including some loft-style units with 18-foot ceilings. All units will have smart home features. The amenities will include a virtual reality concierge and automated package delivery.

Pixl should be completed in the first quarter of 2022. It’s near Strada, a for-sale townhouse community Invesca built several years ago.

The mortgage also replaced the original $28 million construction loan for Envy, which is nearly completed. It will have 213 apartments and commercial space on Atlantic Avenue.

Invesca is the architect and general contractor for both projects.

“This will be one of the last meaningful construction loans done for a while,” Miller said.

 

 

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Market Outlook April 9, 2020

Over the past few weeks there has been a tremendous amount of economic uncertainty that has turned the real estate capital markets upside down. There have been 2,600 borrowers representing $50 billion of Commercial Mortgage Backed Security (CMBS) loans that have asked for reprieve on their April mortgage payments.  This metric doesn’t consider agency debt, bank debt, life insurance debt or all of the other lending channels.  We are truly in unprecedented times.

With commercial operating accounts being drawn down at a record pace, bank depository rates have dropped significantly.  These banks are now trying to hold on to liquidity so they can honor their existing commitments for future funding. This has created spillover issues in the rest of the capital markets.

The lenders that have levered their positions with repo lines or warehouse lines are finding these instruments frozen and margin called.  In addition, debt funds that rely on selling a senior interest in their loans to get economic efficiency no longer have a market of buyers.

With all of this being said there still is capital that is being deployed in the market.  There is a stable of lenders that are looking at special situation deals.  These lenders are looking to provide short term financing solutions to clients that are backed into a corner.  Fixed rate financing options are still available.  Options exist for assets where we can demonstrate that the cash flow is stable even in these unstable times.  This money has gotten more expensive by about by roughly 1%.

Right now, cost efficient capital for any construction, transitional assets or short-term bridge financing is on hold.  With the CLO market at a stop and the lack of availability to lever loans, this type of financing is currently extremely limited.

When the world is able to go back to work and businesses start to open, the real estate market can assess how many tenants are paying rent and how many mortgage payments are missed. This information will lead us to what real estate values are.

We think that when we get to this point, we will see the CLO and CMBS bond buyers become active again quickly. We also think that banks will be gaining deposits again and with the Fed lift of the depository ratios, the banks will begin lending again.  We also think that this downturn is going to activate parts of the equity markets. For the past two years we have seen yields tighten and we had an increase of debt vs. equity.  Expect to see that pendulum swing back.

At BayBridge Real Estate Capital, we are constantly obtaining market information and data.  We are helping clients and prospective clients walk through the nuances of the capital markets that impact their deals and future pipelines.

If you have a special situation or critical need, please reach out. We will do all we can to help you solve the problems that are arising in these unprecedented times.