From the Desk of Professor Eyzenberg
The second quarter ended with some guarded optimism for the future. As states began to reopen, we held our breath and watched the economy slowly inch forward.

The real estate market was certainly not immune to the impact of COVID-19, but the worst seemed to have disproportionately impacted the retail and hospitality sector. The ever-present drumbeat of distressed debt did not materialize in any significant manner to satisfy the large pools of capital that were waiting.

The good news was that the CRE debt and equity capital markets did not undergo the same seizure as they experienced in 2008, and money (measurably) flowed into the space. Multifamily propped up by the agencies and HUD fared well, especially in the low interest rate environment. As the market collectively decided that the world will not turn into a scene from The Walking Dead, hope for a brighter future spurred select lenders to fund development loans (albeit with recourse from banks and higher pricing from the debt funds).

Alternative capital structures took center stage with retroactively-funded C-PACE loans providing rescue capital and Ground Leases helping to recapitalize over-levered properties.

We at Eyzenberg & Company continue to work tirelessly to support our clients during this volatile time.

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


Select completed transactions
$22MM Mixed-Use Portfolio Recapitalization | Greenwich, CT
Structured and negotiated an extension of an expired bridge loan secured by a mixed-use portfolio in anticipation of developing a 250-unit multifamily property on the site.
$11.5MM Multifamily Property Acquisition | Memphis, TN
Structured and arranged a bridge loan to acquire a value-add 384-unit multifamily property.
$7.6MM Grocery Anchored Retail Acquisition | VA
Structured and arranged joint venture equity to capitalize the acquisition of a grocery anchored retail shopping center in Richmond, VA.


Spotlight on Select Programs
Ground Lease structures continue to provide an alternative source of cheap capital to the private real estate markets.

Though far from mature, the industry has begun to segment into the fixed-income (held-to-maturity) vs. the private equity (exit) model. While the fixed-income model features lower cost (3-4% going-in cap rates), it is not able to effectively provide certain features such as buy back options to leasehold tenants. Though the PE model does provide more flexibility around future reconsolidation, its higher price tag (4.85%-6.5% going-in cap rates) make it less attractive for existing cash flowing properties.

Eyzenberg Ground Lease Capital has the unique ability to fund ground lease transactions across the entire spectrum, ranging from development deals to core multi-tenant assets with or without buybacks.


Select Deals in the Market Seeking Capital
Construction Loan
$21MM | Marina | Development | Daytona Beach, FL
Credit Line 
$20MM | Student Housing | Leased Fee | Blacksburg, VA
Construction Loan
$83MM | Hotel | Development | Orlando, FL
Senior Loan
$20MM | Office | Leased Fee | Hopewell, NJ
Senior Loan
$63.4MM | Office | Leasehold | Florham Park, NJ
Ground Lease
$175+MM | Mixed Use | Development | Miami, FL


Real Estate Capital Alliance (RECA) Quarter 2 Production Statistics. 

Eyzenberg & Company is a proud member of the Real Estate Capital Alliance ( RECA members arranged over $4.8 billion in capital in 2019. Below are RECA production statistics for Quarter 2 of 2020.