Emerald Creek's Bridge Loan Product Gains Momentum

NEW YORK, May 24, 2011 /PRNewswire/ -- Emerald Creek Capital a private equity fund in Manhattan, NY recently provided three bridge loans secured by assets in the residential inventory, multifamily, and retail sectors.  Patrick Janson, an Associate at Emerald Creek Capital, recently originated a $3,810,000 construction completion loan secured by 15 luxury condominiums in Williamsburg, Brooklyn.  This transaction was the second loan Mr. Janson has provided in 2011 involving condominium development in Brooklyn.  Jeff Seidler, a Senior Vice President at Emerald Creek, explains, "Many investors have been hurt in the housing market because they placed their entire focus on comparable sales.  At Emerald, in addition to a study of comparable sales in the market, we utilize a user-cost housing formula which stresses fundamentals."

This quarter Mr. Janson also funded a $1,375,000 loan to an established real estate investment firm for the purchase of a 31,000 sq ft retail center in Indianapolis, IN.  The property was managed by a special servicer who had provided above market concessions to many of the tenants.  This adversely affected the Net Operating Income preventing the property from obtaining permanent financing. "The borrower saw an opportunity to acquire a mismanaged asset at approximately 60% of the stabilized value and 40% of the cost to build," explained Mr. Janson.  In a "value-added" scenario such as this, real estate firms utilize bridge loans in order to acquire non-performing assets with the intent of repositioning them.  Emerald Creek's loan products do not have lock up periods enabling the borrower to replace the bridge loan with conventional financing once they have executed their business plan and stabilized the asset.  

In another recent transaction, Mr. Seidler provided an acquisition rehabilitation loan with the security of a multifamily dwelling on Grove Street in Jersey City, NJ.  The sponsor brought 40% of the overall project cost.  In addition, he has experience rehabbing buildings in the immediate neighborhood, and a strong credit history.  This loan came to the private sector as conventional lenders did not want to work through the labor intensive nature of a draw schedule on a small transaction (loan amount was less than $1,000,000).  Explains Jeff, "Although we prefer larger loans, Emerald is willing to put the work in for the right transaction and relationship."

SOURCE Emerald Creek Capital