$10MM Retail Leasehold Acquisition | Santa Ana, CA

Arranged financing for the acquisition of two 30-year leasehold interests in a multi-tenanted shopping center in Santa Ana, CA. 

Challenges

The shopping center is situated on two parcels owned by different entities. The remaining duration of the co-terminus ground leases was problematic for many lenders who prefer longer duration collateral. Additionally, the dry cleaner tenant necessitated additional insurance in case of an environmental mishap.

 

Solutions 

Proposed several loan structures suitable for the transactions and identified relevant lenders that were willing to structure around the remaining ground lease terms. To achieve max proceeds on a non-recourse basis, selected a CMBS quote with 20-year amortization. The perceived environmental issue was economically resolved with environmental insurance.

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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
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