GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings

MDG bond is secured by a first mortgage on two properties

TRD New York /
Mar.March 30, 2017 04:30 PM

In two separate bond offerings on the Tel Aviv Stock Exchange on Thursday, David Marx’s Marx Development Group and Allen Gross’s GFI Real Estate Limited raised $61 million and $69 million respectively in an institutional tender.

MDG raised the bonds at an interest rate of 3.75 percent, the lowest of any American real estate company on the bond market thus far. The bond is secured by a first mortgage on two assisted-living properties with a combined value of $117.5 million. MDG is seeking to complete the bond raise with $74 million in the public tender, which translates to 63 percent of the properties’ value.

The funds will first pay down the $53 million in debt on the properties, a 184-bed assisted living center at 71-61 159th Street in Flushing and a 240-bed assisted living center at 566 Louisiana Avenue in East New York.

The structure of offering bonds that serve as first position is a new method for American companies on the Israeli market. Yoel Goldman’s All Year Management raised $166 million in February in first position bonds for the William-Vale hotel at 3.95 percent.

GFI’s bond is a traditional corporate bond and the firm is seeking to raise up to $83 million in the public tender, which will take place next week. The interest rate, at 5.75 percent, is an improvement over GFI’s first series of bonds, issued in 2015, which carried a 7.75 percent interest rate.

Victory Consulting, led by Gal Amit and Rafael Lipa​, advised on the offerings. The firm declined to comment.

GFI recently secured $181 million in financing for their hotel-and-condo project at 5 Beekman Street. The 287-key Beekman Hotel, in the newly restored Temple Court, opened in August and the 51-story condo tower is under construction. GFI also recently purchased the Crowne Plaza hotel near JFK airport for $60 million, adding to its growing portolio of New York hotels.

Both bonds are Series B bonds and both firms are rated A- by the rating agency Midroog.


Related Articles

arrow_forward_ios
Rare development site in northern Queens hits the market for $45M

Rare development site in northern Queens hits the market for $45M

Rare development site in northern Queens hits the market for $45M
David Marx lands $125M loan from Moinian for Hudson Yards hotel

David Marx lands $125M loan from Moinian for Hudson Yards hotel

David Marx lands $125M loan from Moinian for Hudson Yards hotel
David Marx secures $67M refinancing for Aloft hotel site

David Marx secures $67M refinancing for Aloft hotel site

David Marx secures $67M refinancing for Aloft hotel site
Barry Sternlicht and (from top) Capital Mall in Washington, Franklin Park Mall in Ohio and Plaza West Covina Mall in California (Credit: Capital via Starwood, Franklin via OCP Contractors)

Competing bids for Starwood’s suffering retail

Competing bids for Starwood’s suffering retail
From left: Mapleton Rentals at at 1555-1575 61st Street in Mapleton, 1440 Story Avenue in Soundview, Beard-Van Brunt at 411 Van Brunt Street in Red Hook

Abraham Leser targets $74M refi for Brooklyn, Bronx properties

Abraham Leser targets $74M refi for Brooklyn, Bronx properties
Alex Sapir, CEO of the Sapir Organization (Credit: Getty; iStock)

Alex Sapir wants to take his firm private. This could be the right time

Alex Sapir wants to take his firm private. This could be the right time
Clockwise from top left: 871 Grand Street, 392 St. Marks Avenue, 607 Franklin Avenue and 600 Park Place in Brooklyn (Credit: Google Maps)

All Year’s $346M multifamily portfolio sale to David Werner falls apart

All Year’s $346M multifamily portfolio sale to David Werner falls apart
GFI Capital CEO Allen Gross with the Beekman Hotel at 123 Nassau Street (top left), Ace Hotel at 20 West 29th Street in NYC (right) and Ace Hotel & Swim Club Palm Springs in California (bottom left) (Credit: Ace Hotels; GFI; Google Maps)

Allen Gross, owner of Ace and Beekman hotels, expecting $12M PPP loan

Allen Gross, owner of Ace and Beekman hotels, expecting $12M PPP 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...