$7.5MM Land Recapitalization | Cape Charles, VA

Eyzenberg & Company arranged a highly structured 12-month lot development loan with additional CapEx for clubhouse, tax obligations to investors, and existing loan takeout in the Bay Creek Development located in Cape Charles, VA.

Challenges

The client was seeking financing on destination, “for sale,” product in what appeared to be a very tertiary market with retail buyer takeout. Further the client needed the proceeds for horizontal lot work and additional ancillary projects, including clubhouse, golf & tennis facilities, and other improvements. The project sits on a conservation easement thereby requiring Borrower to utilize some of the proceeds to address tax distributions for the investors in the project as it continues to grow and reach completion. Lastly, the client wanted the option to keep additional dollars available and pay a balloon on the loan keeping capacity outstanding, if necessary, with options to extend an additional year.

Solutions

Eyzenberg &Company was able to leverage the clients demonstrated track record and transparent, “real time,” operations to show the lenders day-to-day trailing 3-year sales records. Additionally, the client was able to offer additional collateral to enhance and provide predictable paydown of the loan request. While the option for non-recourse was available with a higher paydown requirement the client opted for a lower percentage with recourse on the loan.

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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