Case Real Estate Capital, LLC (Case), a newly formed private situational lender, has finalized its first debt-investment secured by two redevelopment projects in New York City. The borrower has a long-time association with Case Managing Principal and Co-Founder Sanford Herrick.
"This was an extremely complex loan structure that affords the borrower flexibility to unlock the true value of these two transitional assets," said Herrick, who noted the sponsor is an entity with whom he had done business at SWH Funding Corp., a predecessor firm to Case. "While this $1.5 million loan is a bit less than our targeted range, we consider each borrower's needs on an asset-by-asset basis. We saw this as an opportunity for Case to service this sponsor, who is a real estate veteran with 30+ years of experience, now and in the future."
Case is currently targeting loans between $2 million and $25 million. "We anticipate an on-going, heightened need for situational lending as an influx of loans continue to be cleared off conventional lender balance sheets," added Herrick. "There isn't any shortage of buyers who want to own properties, particularly in the multi-family and retail sectors; just a shortage of money."
Each loan is evaluated on its own merits, based on the borrower's unique situation, local market conditions and the collective expertise of Case's in-house investment and origination professionals. The company offers traditional and short-term bridge loans; discounted pay-off (DPO) financing; construction financing; and first- and second-mortgage financing to facilitate a wide variety of situations.
"These types of opportunistic investments typically fall outside the realm of conventional lenders, so we fill the gap by providing short-term, fixed-rate loans necessary for property repositioning or redevelopment," said Herrick. "We understand that our borrowers need certainty of funding in order to take advantage of the dynamic opportunities in the market."
Based in Rochelle Park, N.J., Case was established in January by Herrick along with Co-founders and Principals Scott Hartstein and Steve Milona. Currently, Case is targeting all transitional asset types, including multi-family, land, retail, office and industrial, throughout the Northeast and Mid-Atlantic region.