Emerald Creek Capital closes over USD30m in 60 days
Emerald Creek Capital, a private equity real estate firm based in New York City, saw a 42 per cent increase in loan volume in 2013.
In the last 60 days alone Emerald Creek has funded 11 middle market debt transactions totalling over USD30m. The deals covered the full spectrum of financing needs from time sensitive year-end situations to a construction loan on a luxury condominium development.
One of these transactions, a USD5,000,000 acquisition loan in Schenectady, New York, was secured by a 460,000 SF regional mall. The property was acquired for USD8,500,000 in a time of the essence contract.
"The sponsor recognised the opportunity and put down a 20 per cent non-refundable deposit," says Mark Bahiri, a managing partner at Emerald Creek. "Our bridge loan helped him acquire the property quickly and it will allow him the time he needs to find longer term financing."
With the US economy gaining momentum and commercial real estate demand on the rise, lenders of all categories saw an increase in debt origination. According to Commercial Real Estate Direct, private-label CMBS issuance saw an 82 per cent increase from the previous year.
“We have been extremely active in the middle market debt space," says Bahiri. "In 2013 we saw investor confidence increase and there was a renewed appetite for real estate all over the country, especially during the fourth quarter."
Another recent Emerald Creek deal was a USD4,100,000 bridge loan secured by a development site in Huntington NY. The site is an assemblage of two parcels located along NY State Route 25 (Jericho Turnpike). Encompassing over six acres of land this site is expected to sell for USD7,800,000 in the first half of 2014. The proceeds from the loan were used to refinance the existing mortgage and pay off the accrued real estate taxes.
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