Structured and arranged long-term fixed-rate senior debt to recapitalize a 31,000-square-foot shopping center next to the Hard Rock Casino in Las Vegas, Nevada.
Challenges
The closing had stalled with a potential lender and the existing financing was coming due shortly. Most of the leases had less than a year of seasoning, making it difficult to count percentage rent. Furthermore, historical billboards were difficult to calculate due to gaps in operating history.
Solutions
Advised client to switch lenders and focus on fixed-rate vs. floating-rate debt due to ability to structure holdbacks for remaining vacancy. Doing so increased proceeds, decreased the rate and removed interest rate fluctuation risk for the anticipated long-term ownership. The convinced lender that annualizing actual trailing operations was supportable due to the centers proximity to the Hard Rock casino across the street. Consulted borrower to sign a one-year fixed rent lease for the billboards, enabling lender to include said operational revenue into its sizing calculation.
Gary Melman joined Eyzenberg & Company in 2024 and is responsible for
originating, structuring, and placing debt and equity capital for commercial real estate
transactions throughout the U.S.
Gary is a seasoned commercial real estate finance and investment manager with
substantial institutional experience in capital markets, financing, acquisitions, and
asset management across various asset classes during his prior roles at J.P.
Morgan, TIAA-CREF, American Realty Advisors, and PCCP.
Prior to joining Eyzenberg & Company, Gary was responsible for capital markets at
Intracorp Homes, originating and placing capital for Intracorp’s multi-family,
townhome, and condominium ground up development projects on the West Coast.
Gary received an MBA in Finance from NYU Stern School of Business, a BBA in
Finance from Pace University, and is a licensed real estate broker in California.
gmelman@eyzenberg.com
D: (305) 995-0777 ext.729
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