New private equity fund enters market

TRD New York /
Feb.February 01, 2010 01:49 PM

Amidst harsh credit requirements and financial uncertainty, some smaller entities are trying to gain market share by offering instant liquidity for perplexed borrowers.

A good technique, according to Mark Bahiri, managing partner at the new Emerald Creek Capital, is to be quick when analyzing and finalizing loan deals. To that end, Bahiri and Mark Penna of asset management firm Neuberger Berman launched a private equity fund “to try and capitalize on the lack of liquidity in the marketplace,” he said. “Banks just stopped lending and we’re seeing a lot of opportunities out there.”

Bahiri, who formerly worked at Madison Realty Capital, opened Emerald Creek Capital last October. The direct bridge lender has nine full time employees, and provides anywhere from $1 million to $20 million in loans with a 10 to 13 percent interest rate. Emerald secures it with a first lien position.

Since its inception, the firm has done three deals — one in Long Island, one outside New Haven and one in Texas, plus a deal in the works in Atlanta, Ga.

With the Connecticut deal, Bahiri said his national firm, based at One Penn Plaza in Manhattan, fielded a call from a borrower who had more than 60 percent of the $2.8 million purchase price for a 50,000-square-foot shopping center, but was unable to come up with the other 40 percent. The buyer was nine days away from losing his 10 percent deposit when Emerald put in the rest to make the deal happen.

“I got into the car the next day, saw the property, got an idea of the general value and got the deal approved within a week,” Bahiri said.


Related Articles

arrow_forward_ios
Ilan Bracha, Haim Binstock and 39 East 72nd Street (Getty, Elliman)

Vanderbilt mansion condo conversion in foreclosure

Vanderbilt mansion condo conversion in foreclosure
Mortgage lenders are beginning to see missed rent payments from office buildings. (Credit: iStock)

Add office tenants to the list of those not paying rent

Add office tenants to the list of those not paying rent
Brian Harris, CEO of Ladder Capital (Credit: iStock)

“What, me worry?” Ladder Capital says it can easily meet margin calls

“What, me worry?” Ladder Capital says it can easily meet margin calls
Ladder Capital's Brian Harris and Madison Realty Capital's Josh Zegen (Credit: Ladder Capital; Madison Realty Capital)

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff

Ladder Capital deals loan portfolio to Madison Realty Capital amid mortgage selloff
Madison makes $157M loan on Santa Monica rental projects

Madison makes $157M loan on Santa Monica rental projects

Madison makes $157M loan on Santa Monica rental projects
Vornado founder Steve Roth and Industrious co-founder Jamie Hodari (Credit: Getty Images)

Industrious to take 100K sf at Vornado’s One Penn Plaza

Industrious to take 100K sf at Vornado’s One Penn Plaza
From left: Raphael Toledano and Madison Realty Capital managing principals Adam Tantleff, Josh Zegen and Brian Shatz (Illustration by Kevin Rebong for The Real Deal)

Raphael Toledano’s “ghostly” East Village portfolio

Raphael Toledano’s “ghostly” East Village portfolio
Union Crossing at 825 East 141st Street with The Bluestone Group's Eli Tabak and Madison Realty Capital's Josh Zegen (Credit: Union Crossing Bronx)

South Bronx office building lands $85M refi

South Bronx office building lands $85M refi
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...