$94MM Condominium Development | St. Petersburg, FL

Eyzenberg & Company arranged construction financing for a new 88-unit condominium tower in downtown St. Petersburg, FL.   

Challenges

The sponsor is a growing developer with extensive experience in the St. Petersburg market. With the project budget in a constant state of flux due to increasing construction prices from Covid, inflation, and geopolitical issues in Europe, flexible financing was needed that could cover cost overruns and bridge gaps within the capital stack. Additionally, the sponsor needed a debt provider that would allow future sales deposits during construction to be utilized as equity in the capital stack.

Solutions

Eyzenberg & Company arranged construction financing that allowed the developer to use existing sales deposits as equity in the capital stack. To bridge the gap created by future sales deposits during construction that were not already in hand, Eyzenberg structured an increase in loan proceeds that recognized fifty percent of the future sales deposits and was secured by a letter of credit that could be drawn upon if deposits did not arrive to repay loan proceeds. The non-recourse high-levered construction loan provided the proceeds level necessary for the developer to effectuate their business plan.

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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