$30.5MM Multifamily Recapitalization | Baton Rouge, LA

Arranged a fixed-rate permanent loan to recapitalize a newly built 224-unit apartment complex in Baton Rouge, LA.

Challenges

Client was seeking to retire a high-levered bridge and mezzanine loan combination with near-term expiration. Timing was critical since the newly constructed property was still in lease up and the loan would only fund upon a set occupancy hurdle. Since the property was not yet fully seasoned, there was some ambiguity in underwriting normal run-rate expenses.

Solutions

Eyzenberg & Company identified a lender willing to provide 75% LTV for a tertiary market property. Secured an early rate lock to mitigate interest rate volatility – while delaying closing – to enable the property to achieve required occupancy and avoid a prepayment penalty on the existing capital stack.

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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
C: (305) 360-9625