- March 17, 2023
It’s bidding day! The FDIC is selling Silicon Valley Bank and Signature Bank, and the bids are due today. Only bidders with existing bank charters (and a little luck o’ the Irish) will be given access to the bank’s financials, when deciding whether to make an offer. This gives existing lenders the upper hand on private equity firms. If whole sales do not materialize, the banks will be sold in parts.
SVB and Signature were first to be run under water. Other banks, including First Republic and Credit Suisse, were headed for the same fate before being tossed an expensive lifeline. First Republic will receive a $70 billion rescue package pooled together by 11 other banks and the Federal Reserve. Republic’s share price dropped more than 60%, before receiving additional funding. Credit Suisse received a similar $54 billion lifeline on Thursday from Switzerland’s Central Bank, after its stock dropped 24% on Wednesday. Moody’s rating agency is currently reviewing Zions Bancorporation, Western Alliance, Comerica, UMB and Intrust, as well.
How might credit doubt and bank runs affect commercial real estate investors? Up until last week, our biggest challenge had been navigating the complications of increasing interest rates. Now there is new uncertainty in real estate finance as lenders are likely to tighten their underwriting. Debt will get more expensive and harder to come by. The entire situation is reminiscent of the Great Recession and guaranteed to constrain credit. Luckily, the panic is not as bad as that moment in history and the Federal Reserve’s response was swift and organized. Also, the Fed will likely cease rate hikes for the time being.
If we can help you navigate these challenging times, please don’t hesitate to reach out.
Works Cited
Richter, Joseph, et al. “Daily Beat – Commercial Real Estate News.” Daily Beat, 25 Sept. 2019, www.dailybeatny.com.
Young, Celia. “First Republic Scores $30 Billion Rescue Deal from Lending Rivals.” Commercial Observer, Commercial Observer, 16 Mar. 2023, https://commercialobserver.com/2023/03/first-republic-30-billion-rescue-deal/.
Schenke, Jarred, et al. “National Commercial Real Estate News & Trends.” Bisnow, https://www.bisnow.com/national.
- September 12, 2022
NEW YORK, Sept. 12, 2022 – BayBridge Real Estate Capital today announced it secured an $85 million loan to help Invesca Development Group complete construction on PIXL Plantation, a 330-unit luxury apartment building located five miles west of downtown Ft. Lauderdale, Fla.
Located in the Sunrise Boulevard corridor between Florida’s Turnpike and State Road 7, PIXL Plantation is a part of a larger 6.7 acre planned community that, once completed, will include 147 townhomes, office and retail space, and a vast network of green space featuring walking paths, parks, picnic areas, an outdoor movie theater and a resort-style pool.
Jay Miller, AJ Felberbaum and Spencer Miller with BayBridge Real Estate Capital arranged the financing that was provided by Madison Realty Capital based in New York, NY.
About BayBridge Real Estate Capital
A specialty firm focusing on responsive execution and creative financing, BayBridge Real Estate Capital helps developers and investors source funding for a broad range of commercial real estate projects. With an emphasis on structured finance, the team brings decades of experience to markets across the country from its offices in New York, Miami, Fort Lauderdale, Boca Raton and West Palm Beach, Fla. For more information, visit www.baybridgerec.com or call (646) 213-7561.
- August 4, 2022
NEW YORK, August 4, 2022 – BayBridge Real Estate Capital today announced it worked with Las Olas Capital to source financing for Everglades College, Inc., to purchase two office buildings.
Everglades College is the parent company of Keiser University. The office buildings are located at 1900 W. Commercial Boulevard and 1500 NW 49 Street in Ft. Lauderdale, FL. The locations were previously leased as academic campuses for Keiser University.
TD Bank provided $40.3 million of the financing.
Paul Tanner of Las Olas Capital served as financial advisor to Everglades College, Inc. Jay Miller, AJ Felberbaum and Spencer Miller of BayBridge Real Estate Capital sourced and structured the financing package.
Keiser University is a private, non-profit university in Ft. Lauderdale. Everglades College purchased Keiser University in 2011.
About Las Olas Capital
Las Olas Capital provides wealth management, advisory services and investment solutions, including capital market transactions and impact investing.
About BayBridge Real Estate Capital
A specialty firm focusing on responsive execution and creative financing, BayBridge Real Estate Capital helps developers and investors source funding for a broad range of commercial real estate projects. With an emphasis on structured finance, the team brings decades of experience to markets across the country from its offices in New York, Miami, Fort Lauderdale, Boca Raton and West Palm Beach, Fla. For more information, visit www.baybridgerec.com or call (646) 213-7561.
- July 26, 2022
BayBridge Real Estate Capital’s Jay Miller, AJ Felberbaum and Spencer Miller arranged financing for a hotel property in Montclair, New Jersey.
- Loan profile: Refinance
- Property: The MC Hotel, located at 690 Bloomfield Ave, Montclair, NJ. The hotel is a part of Marriott’s Autograph Collection.
- Sponsorship: The Hampshire Companies is a privately held, fully integrated real estate firm, real estate investment fund manager and Registered Investment Advisor based in Morristown, N.J. The Hampshire Companies has a diversified investment platform and derives results from its broad experience in multiple commercial real estate asset classes. Hampshire prides itself on its vertically integrated business platform. Having an in-house team of dedicated professionals helps to streamline all aspects of a project from acquisition to financing to development and construction to marketing and leasing. An integrated business model enables Hampshire to be nimble and act quickly, actively manage the project ensuring exclusive control, and provide the highest level of service to its investors.
- Sponsorship: The Pinnacle Companies is a privately held, regional real estate development firm based in Montclair, N.J. The Pinnacle Companies focuses its core competencies on transformational residential, commercial and retail properties with a concentration on redevelopment, mixed-use and transit-oriented projects.
- Lender: Hall Structured Finance based in Dallas, TX. The loan was originated by Hall’s Vice President Matt Mitchell.
- July 25, 2022
Article from The Commercial Observer: https://commercialobserver.com/2022/07/hall-structured-finance-refis-new-jersey-hotel-with-46m-loan/
- July 22, 2022
Article from HotelBusiness.com
Hall Structured Finance closes loan to refinance The MC Hotel in Montclair, NJ
Dallas-based Hall Structured Finance (HSF) has closed a first mortgage bridge loan to refinance the MC Hotel, an Autograph Collection by Marriott property located in Montclair, NJ. The MC Hotel was developed by a joint venture between The Hampshire Companies and The Pinnacle Companies and opened in August 2019. Aparium Hotel Group manages the property. In connection with the closing of the loan, an adjacent restaurant site has been acquired for which a new upscale restaurant is being designed, adding to the hotel’s existing signature food and beverage venues.
Located in downtown Montclair, the 159-room boutique hotel is in a business and entertainment center known for its restaurants, retailers, and arts and entertainment venues. The hotel features multiple meeting and event spaces, including a 3,000-sq.-ft. ballroom that can accommodate up to 200 guests. The hotel features its signature restaurant Allegory, and Alto, the only rooftop indoor/outdoor bar and lounge in Montclair, located on the ninth floor. In addition, the hotel features an art collection on display throughout the property, showcasing both local and international artists.
Hampshire and Pinnacle are also partners on the MC Residences, currently under construction on the same block. The future MC Residences will include 40 high-end multi-family rental units, a 3,500-sq.-ft. food hall and a 4,000-sq.-ft. streetside outdoor plaza.
Jay Miller, AJ Felberbaum and Spencer Miller from BayBridge Real Estate Capital, sourced the financing for the project.