NEW YORK, Jan. 29, 2014 /PRNewswire/ -- Emerald Creek Capital, a private equity real estate firm based in New York City, saw tremendous growth in 2013. In tandem with national trends, the company experienced a 42% increase in loan volume over the previous 12 months. In the last 60 days alone Emerald Creek has funded eleven middle market debt transactions totaling over $30,000,000. 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 $5,000,000 acquisition loan in Schenectady, NY, was secured by a 460,000 SF regional mall. The property was acquired for $8,500,000 in a time of the essence contract. "The sponsor recognized the opportunity and put down a 20% non-refundable deposit," explains 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 U.S. 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% increase from the previous year, "we have been extremely active in the middle market debt space," says Mr. Bahiri, "in 2013 we saw investor confidence increase and there was a renewed appetite for real estate all over the country, especially during the 4th quarter."
Another recent Emerald Creek deal was a $4,100,000 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 6 acres of land this site is expected to sell for $7,800,000 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.
As the demand for commercial real estate continues to climb, so too will the need for alternative financing. Emerald Creek Capital was launched in the first quarter of 2009, and it has helped provide credit solutions for real estate investors over the past five years. Today, the firm originates short-term debt from both its onshore and offshore asset based lending funds.
- Financials Industry
- commercial real estate
- private equity real estate