CRE finance platform Lev lays off more staff
Separately, Henegan Construction shutting down after 64 years
Commercial lending startup Lev was once the belle of the ball for venture capitalists. Now it’s trying to keep the music playing as the industry slumps.
The startup is laying off 34 employees, Crain’s reported, just months after cutting roughly 30 late last year.
Only a year ago, the company, founded in 2019 by Sammy Greenwall and Yaakov Zar, raised $70 million in Series B funding after $30 million and $10 million rounds in 2021. Investors have included JLL Spark, NFX, Cross River Digital Ventures, Parker89, Canaan Partners, Amino Ventures and Ludlow Ventures.
The company uses AI technology to connect lenders with borrowers looking to acquire properties. It makes its money by charging fees for transactions and reportedly helped originate $1 billion in mortgages two years ago.
But a year of interest rate hikes has choked off commercial real estate lending, leaving fewer transactions for Lev. Zar did not comment to Crain’s about the layoffs.
The news is worse for Henegan Construction, which has enjoyed a much longer run but faces a more imminent end. The New York City-based firm laid off 55 employees recently and the rest are expected to lose their jobs shortly, if they haven’t already: The family-owned firm is prepared to wind down operations by August.
The company was founded in 1959 and is based near Penn Station. It specializes in interiors and has been one of the more active firms in the sector, ranking 14th in 2019 among general contractors doing renovation work. In the year prior to the ranking, the company performed 32 projects for $54.5 million.
Henegan has performed interior work at prominent office buildings in Manhattan and New Jersey. Clients have included Bank of America and JPMorgan Chase.
Maureen Henegan ascended to the chief executive role in 1991, following in the footsteps of her father. Henegan did not comment to Crain’s regarding the company’s future.
— Holden Walter-Warner
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