$35MM Multifamily Acquisition | Miami, FL

Structured and arranged joint venture equity to capitalize the acquisition and repositioning of a 243-unit multifamily property in Miami, Florida.

Challenges

The value-add proposition was undermined by the seller’s limited success in increasing rental rates after upgrading half of the property’s units. Additionally, the sponsor’s track record consisted of one multifamily acquisition of a comparable size, and no previous history with institutional equity partners.

Solutions

Demonstrated that the seller’s renovations were too expensive and failed to target amenities tenants value the most, such as a swimming pool, covered parking, a gym and landscaping. Identified a capital source willing to underwrite the sponsor’s business plan in exchange for a senior-subordinate structure in the equity. Provided future liquidity options for the client by negotiating sell down rights for half its equity position.

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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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