Silverstone’s Martin Nussbaum forms new investment firm

Split could be result of friction with co-founders, sources say

New York /
Nov.November 18, 2013 06:11 PM

Martin Nussbaum, a founding principal at Manhattan-based Silverstone Property Group, has started a new real estate investment firm, he told The Real Deal exclusively. The venture, called Slate Property Group, is aiming to be a player in the same asset classes – multi-family rental and mixed-use buildings in Manhattan and Brooklyn – that have made Silverstone a force to be reckoned with in recent years, Nussbaum said.

“It’s just an opportunity to build off the track record we’ve had so far,” he added.

Nussbaum said that two top Silverstone executives – head of acquisitions Steven Figari and Michael Zampetti, vice president of operations, construction and management – would join him in the new venture, which will be run out of a 4,500-square-foot space at 850 Third Avenue. He reiterated that there was no trouble brewing between him and Silverstone’s other founders – whom he’s known since childhood — and that “everyone’s on very good terms.”

Nussbaum also stressed that he would continue to be involved in Silverstone as an owner and an asset manager, but Josh Zegen, a co-founder of Silverstone with Brian Shatz, said that Nussbaum had left the firm. (Zegen and Shatz are also the two co-founders of Midtown-based lender Madison Realty Capital.) “The senior principals of the firm will continue to make all the investment decisions about acquisitions, development, construction and asset management of the Silverstone portfolio,” Zegen said. “We’ll continue with our business plan for value-added and opportunistic investments in the metro area.”

Brokers and collaborators who have worked on deals with Silverstone said that Nussbaum’s move was likely the result of a power struggle between him and his fellow co-founders. There was disagreement between Nussbaum and the Madison principals, one broker said, about how to steer the company moving forward, and rumblings of Nussbaum’s departure had been circulating for at least a few weeks, sources said.

Nussbaum, Zegen and Shatz formed Silverstone in 2009 to capitalize on distressed properties at the bottom of the market. Since then, the company has been pretty busy, having acquired at least 22 properties worth some $345 million since 2010. Some of their biggest deals include the acquisition of a seven-building Kips Bay residential portfolio in partnership with Ari Shalam’s RWN Real Estate Partners for $71.5 million in September of this year, and a 128-unit, 17-story Murray Hill building at 247 East 28th Street for $53 million, also in partnership with RWN, as The Real Deal reported.

Representatives from RWN could not be immediately reached for comment.

GFI Realty’s Yosef Katz, who represented Silverstone in the Kips Bay deal, said that the company was among the city’s “top five players in terms of active purchasing, both on the debt and deed side.” Katz pointed to their success in turning around properties and raising rents, such as at the 33-unit 157-159 Suffolk Street on the Lower East Side, where the group paid $8 million in January 2011 and sold the building for $18 million in December 2012.


Related Articles

arrow_forward_ios
Carpenter & Company's Richard Friedman and 2 Canal Street in New Orleans (Carpenter & Company, Google Maps)
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
New Orleans Four Seasons lands $315M loan from Madison Realty Capital
Hello Living's Eli Karp, Arch Companies' Jeff Simpson with 1580 Nostrand Avenue (Hello Living)
Eli Karp’s Hello Living yet again in danger of losing Flatbush project
Eli Karp’s Hello Living yet again in danger of losing Flatbush project
Quadrum Global CEO Oleg Pavlov and 29 Huron Street in Greenpoint (Quadrum Global, Morris Adjmi Architects, Getty)
UK developer lands $126M for Greenpoint luxury dev
UK developer lands $126M for Greenpoint luxury dev
Madison Realty Capital's  Zach Kadden with 364 Bay Street (LinkedIn, Loopnet)
Madison Realty Capital plans 100 small apartments, a NYC rarity
Madison Realty Capital plans 100 small apartments, a NYC rarity
World Wide Group's James Stanton, Suchman Group's Jeffrey Suchman and rendering of 66 Nowedonah Avenue in Water Mill NY (World Wide Group, Getty Images, The Water Mill Crossing)
JS Squared gets financing to build 38 Water Mill townhomes
JS Squared gets financing to build 38 Water Mill townhomes
Madison Realty Capital comes of age
Madison Realty Capital comes of age
Madison Realty Capital comes of age
PS 64 at 605 East 9th St and MRC’s Josh Zegen (Google Maps, LinkedIn)
East Village’s languishing PS 64 nears foreclosure
East Village’s languishing PS 64 nears foreclosure
Madison Realty Capital's Josh Zegen and 98-08 Queens Boulevard in Rego Park (Google Maps)
Rego Park apartment project lands $125M construction loan
Rego Park apartment project lands $125M construction loan
arrow_forward_ios

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

Loading...