PROFESSOR'S CORNER

From the Desk of Professor Eyzenberg
The fourth quarter ended with what can best be described as a return to something almost, kind of like normalcy.

Though paling in comparison to the historic (33.1%) bounce back of the third quarter, the fourth quarter still saw better-than-average growth of 4%. With a good portion of the economy still hampered by closures (think restaurants in NYC), there remains a significant runway for additional growth as stifling regulations are rolled back. One must look no further than NY, CA, and IL where government officials moved to relax closure rules heading into the first quarter.

The dust is settling from an unprecedented election season and a change in administration. As we move forward, the real estate industry will need to assimilate to whatever legislative agenda might come. Market participants expect to see 1031 and carried interest on the chopping block as well as an increase in tax rates. On the flip side, we expect to see an increase in funding for FHA and, most certainly, continued support for all things green.

In times of volatility, new capital structures emerge to fill a void. Property Assessed Clean Energy for commercial properties (C-PACE) emerged as a source of rescue capital for assets out of favor, specifically hospitality. Though C-PACE was gaining popularity as an option for retrofits prior to the recent market downturn, the product really shined with asset classes that found themselves cut off from the capital markets. With its ability to be funded retroactively (after improvements have already been made) several years after the fact, C-PACE is a pocket of “found” money for projects in need of a basis paydown, reserve funding, or improvement requirements. Our affiliated entity Eyzenberg GreenCap recently originated just such a loan. More details are provided in this letter's Proprietary Capital Solutions section below.

- David Eyzenberg (Adjunct Professor at NYU Schack & UM Herbert Business School)

RECENT CLOSINGS

Select completed transactions
$53MM Hotel | Recapitalization | Santa Rosa, CA
Eyzenberg GreenCap originated a C-PACE loan to recapitalize a temporarily impaired 170-key luxury resort hotel in the middle of upgrades and improvements.
$33.2MM Multifamily Portfolio | Acquisition | Denver, CO
Structured and arranged joint venture equity to capitalize the acquisition of a 116-unit multifamily portfolio in Denver, CO.
$10MM Suburban Office Building | Acquisition | Austin, TX
Structured and arranged a bridge loan for the acquisition of an owner-occupied, 29,000 square-foot suburban office building in Austin, Texas.

PROPRIETARY CAPITAL SOLUTIONS 

Logo Eyzenberg GreenCap
Eyzenberg GreenCap originates C-PACE financing for new development and heavy renovation, as well as CRE projects where the work has already been done and can be funded retroactively. This capital structure has emerged as a lifeline for the hospitality sector, which has seen itself significantly cut off from the capital markets. Click below to inquire about your project's eligibility.
Bridge Loan 
$3.4MM | Office | Recapitalization | Los Angeles, CA
Construction Loan
$75MM | Hotel | Development | Orlando, FL
JV Equity
$6MM | Office | Acquisition | Reston, VA
Bridge Loan
$12MM | Office | Acquisition | Reston, VA
Construction Loan
$110MM | Hotel | Recapitalization | New York, NY
428-Unit Leasehold Development
$97MM | Multifamily | Development | Miami, FL
400-Unit Leasehold Development
$62MM | Multifamily | Development | Bonita Springs, FL
120-Unit Leasehold Development
$48MM | Multifamily | Development | Greenwich, CT

RECA CORNER

Real Estate Capital Alliance (RECA) 2020 Production Statistics. 

Eyzenberg & Company is a proud member of the Real Estate Capital Alliance (reca.us). RECA members arranged over $4 billion in capital in 2020. Below are the complete RECA production statistics for 2020.