$30.2MM Retail Recapitalization | Las Vegas, NV

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.

Share on social media:

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
C: (305) 360-9625