$39MM Industrial Development | Broomfield, CO

Structured and arranged preferred equity to capitalize the development of a 316,000-square-foot industrial property in Broomfield, Colorado.

 

Challenges

Sponsor was seeking an equity partner for a speculative development in an emerging industrial hub. The existing environmental issues that required remediation prohibited many equity providers from considering the transaction. Furthermore, a complicated two-phase loan closing structure made a traditional JV equity investment less viable.

Solutions 

Identified an east coast fund manager familiar with the local market and seeking industrial development opportunities. Got investor comfortable that though pursuing small tenants made it difficult to prelease the property the prior precedence of leasing properties during development was the correct strategy for this opportunity. Worked with investor to consolidate a two-tranche funding into a single deployment to enable it to effectively invest into the deal.

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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