$27MM Data Center Acquisition | SC

Structured and arranged a high-leverage bridge loan to acquire and renovate a 160,000-square-foot data center.

Challenges 

The real estate component was only a portion of the total project budget. The borrower plans to reposition the industrial property to accommodate multiple modular units with the most advanced data center software and cooling technology. Though there was some pre-leasing in place, most leasing would occur upon completion. Bridge loans at the requested leverage point are uncommon, especially for relatively new, venture-backed companies.

$27MM Data Center Acquisition | SC

Solutions

Identified multiple options via a comprehensive marketing process, awarding the deal to a national lender that had extensive data and internet investments activity via affiliated entities. The private lender not only understood data centers but would also be able to underwrite borrower’s additional capital needs to cover leasing, improvements and scalability. Structured a carry and interest reserve, providing efficiencies and allowing for a non-recourse execution.

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Seth Schumer

MANAGING DIRECTOR

Seth Schumer joined Eyzenberg & Company as a Managing Director. His primary focus is transaction management and structuring advisory for commercial real estate finance transactions.

Prior to joining the firm, Schumer served as Head of US Investments for Quadrum Global (formerly Cube Capital) where he grew platform from one US hotel investment to an 18-asset mixed use portfolio through new acquisitions, ground-up developments, team building and creation of three internal operating platforms (Tesseract Investment Advisors, Arlo Hotel Management and Quadrum Senior Living Management). While at Quadrum, Schumer acquired, capitalized and asset managed a hotel portfolio that includes Arlo SoHo, Arlo NoMad, Nautilus South Beach, The Godfrey Hotel Chicago, Essex Inn Chicago, and B Resort & Spa at Walt Disney World, and led the efforts to create an in-house hotel management platform and the new Arlo Hotel brand. He additionally led the efforts to develop a senior housing property and the Amavida brand.

His expertise in debt financing including loan underwriting, servicing and borrower relations was learned while working in London for ABN AMRO, and in New York for Chase Manhattan Bank and Chemical Bank. Whilst at AIG Global Real Estate and Real Estate Capital Partners (now CP Capital), he additionally gained asset management, development insight and JV equity structuring experience. Also, during his time at AIG, Seth was part of team that acquired four RTC loan portfolios.

Schumer holds a master’s degree in real estate investment and development from New York University and a bachelor’s degree in accounting from the University of Maryland.

Email

sschumer@eyzenberg.com

D: (305) 995-0777 ext .306
C: (305) 360-9625