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)
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.
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.
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
Real Estate Capital Alliance (RECA) Q1 2022 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.
Aruyel Nurbekova joined Eyzenberg & Company in 2022 as Junior Analyst. She assists with underwriting, analysis, and financing memoranda preparation for commercial real estate debt and equity capitalization assignments.
Prior to joining the firm, Ms. Nurbekova worked as a Business Valuation Analyst at Ernst & Young company, one of the Big Four accounting firms.
Ms. Nurbekova completed her Bachelor of Science degree in Corporate Finance and Investment Management at KIMEP University in Almaty, Kazakhstan.
D: (305) 995-0777
Mr. Muniak joined Eyzenberg & Company in 2022 to focus on debt and equity originations in his newly adopted home of South Florida.
Mr. Muniak is Co-Founder and Managing Partner at Makal Equities, a real estate investment firm specializing in multifamily, industrial and retail property in Southern California and New York. He invested, sourced, and underwrote all commercial development and investment opportunities during this time. Furthermore, Mr. Muniak’s previous position as Managing Director at a Family Office in New York allowed him to develop his skills as he increasingly became involved in all aspects of fundraising and deploying the fund’s investment mandate. In his career to date he has invested, sourced, and underwrote commercial development and investment contracts, exceeding 100 million dollars.
Furthermore, Mr. Muniak is a Board Member and shareholder of the Mangia Hospitality Group in New York, where he oversees all aspects of fundraising, including the Group’s investment mandates. As a strategic dealmaker, Mr. Muniak is responsible for retail acquisitions & new developments and acts as a liaison with City and State Government bureaus. Due to his established reputation as a key player in the real estate and hospitality industry, Mr. Muniak has managed to build a wide portfolio of bicoastal projects and has worked closely with top developers, entrepreneurs, and restaurateurs nationwide.
Originally from New York City, Mr. Muniak graduated from Johnson & Wales University in Rhode Island, and completed his graduate Business certificate in Sydney, Australia. He is a long-time martial artist and a philanthropist.