), Beninati, on the other hand, claimed that it was Gamma that made unreasonable demands around a potential sale in the companys Chapter 11 disclosure statement; he attempted to reach a resolution with Gamma to ensure that creditors were paid, but Gamma demanded it be paid almost $50 million more than it was owed before creditors would be paid.. We made one loan then we made a second loan to complete the purchase. Gamma provided an 18-month loan that then was refinanced with a seven-month, $147 million loan in June 2015. Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. The commercial mortgage REIT also has a credit line of up to $40 million, freeing up a total of $120 million in capital. Kalikow said that his team explained to Beninati that in almost no other scenario would he cash out for $50 million. It engages in cash-flow lending like a BDC but incorporates its borrowers real estate value like an mREIT. Gammas lawsuit firstly alleges that Philip Pilevsky caused Prime Alliance Group (of which he is president) to lend Beninati $50,000 to retain a law firm, LaMonica, Herbst & Maniscalco, to file a bankruptcy petition which then prevented Gamma from executing the foreclosure sale. All told, were talking about nothing absolutely horrible but nothing absolutely attractive either in this regard. Prior to co-founding Gamma Real Estate, Jonathan Kalikow spent 18 years on Wall Street investing across industries and asset classes as a proprietary trader at Morgan Stanley and then as a hedge fund trader and portfolio manager. Sale-leasebacks are where the REIT owns the real estate, and a cannabis operator is the tenant and leases it back. Also, this article is free: written and distributed only to assist in research while providing a forum for second-level thinking. Were prepared to build it. Brewer first met with Bauhouse to discuss the site, prior to Gamma taking it over and recalled, We met with [Bauhouse], and Ill admit I said, This is an awfully tall building. That's considerably lower than the likes of Blackstone Mortgage Trust and Starwood Property Trust's (STWD) ~8% yields the two commercial mREIT heavyweights. After all, this started out as a beautiful dream. Learn More on AFC Gamma's active insiders. Total sales of medical marijuana in Florida blossomed, increasing 56 percent between March and May, compared to the same period in 2019, the Wall Street Journal reported, citing data from the Florida Office of Medical Marijuana Use. When Bauhouse filed its plans for the 87-story tower, Sutton Place locals made a bid for a zoning change that would block super-tall skyscrapers in Sutton Place. Its a pain. That amounted to total gross proceeds of $118.75 million. He's spent his entire life here and his family's real estate roots run four generations deep. Jonathan Kalikow was born and raised in New York. I wrote this article myself, and it expresses my own opinions. They purchased a total of 87,783 shares worth more than $1,380,633.40. And while not uncommon, this isnt the best practice, since it inherently gives the CEO greater control. In its suit against the Pilevskys, Gamma said that the delay allowed groups like the East River Fifties Alliance (ERFA) to organize against its development. In customary fashion, underwriters were granted the option to purchase another 937,000 shares at the IPO price, less underwriting discounts and commissions. The third tier is smaller operators. Its like a bunch of seventh graders picking a fight with a Navy Seal platoon. The corporate mailing address for Mr. Kalikow and other AFC Gamma executives is 525 OKEECHOBEE BLVD. It comprised a $145.9 million single loan to refinance the previous loan and a $1.4 million building loan to fund the demolition of the existing properties at the site. Each loan is unique and tailored specifically to meet the needs of our borrowers. There is still a limited subset of institutional investors who are comfortable with cannabis, despite us being listed on NASDAQ. Cannabis is a rapidly growing industry. In cannabis, it's sometimes difficult to predict the timing of closings, but were excited about our pipeline. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. We didnt make an error. . The complaint alleges that the three of them, as strangers to the project, caused Beninati to breach contractual obligations following his maturity defaults and helped him file for bankruptcy in a scheme to benefit themselves and obtain an ownership interest in [3 Sutton Place]., Were suing Pilevsky for over $100 million, Kalikow said. When Beninati resurfaced later with new legal counsel, it kick-started another (ongoing) lawsuit in the 3 Sutton Place saga, and another player entered the picture: Philip Pilevsky, the CEO of real estate owner and property management company Philips International. Robyn Tannenbaum: Before cannabis, I was a healthcare investment banker for eight years focused on M&A and leveraged finance. AFC Gamma's insider roster includes Jodi Bond (Director), Jonathan Kalikow (Insider), Leonard Tannenbaum (CEO), and Robyn Tannenbaum (Director). Paul was shot in the back of the head Jonathan Roumie is an American actor best known for his role as Jesus in The Chosen, [1] [2] a crowd-funded television series about the life and ministry of Jesus of Nazareth. But the community was up in arms long before Gamma took over the property. RT: Our strategy for building a diverse portfolio is to lend to multiple operators of all sizes, the large MSOs, the mid-tier MSOs, and single state operators. Amy D Scott Jonathan G Kalikow. Its a powerful image.. Additionally, AFC Gamma has a credit line of up to $40 million, providing the REIT with approximately $120 million of capacity to lend to cannabis operators. If I want to buy it, Ill buy it, but I want the borrowers to be successful at the end of the day, he said.). 3-min read. Then theres partner and head of real estate Jonathan Kalikow, and Thomas Geoffroy, CFO. Please don't hesitate to contact us and let us know how we can assist. While we strongly prefer internal management, having the opposite doesnt mean we automatically ignore a company. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. Serial poda za duetem, ktry poszukuje, negocjuje, kupuje i odnawia zniszczone domy w imieniu klientw. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. Are there specific deals the team tends to focus on more? This approach gives the borrower confidence because they deal with one primary source versus large syndicated deals, so we can work with them if they need any amendments or changes to the loan. On Feb. 17, 2016, Bauhouse filed a suit seeking a preliminary injunction to stop the foreclosure sale. Once. The hurdles that you overcome as any growing company is the need for additional talent as you scale. So we look at diversity on a step-by-step basis rather than a borrower-by-borrower basis. What long-term goals do you have planned for the Foundation? Both Robyn and I knew that being listed on NASDAQ would be crucial to our success. Oh, and there was a bankruptcy filing in between. We have found though, that REIT loans give our clients the most flexibility, and we are able to finance more companies this way. Banco Inbursa was one of the first lenders out of the gate, entering into negotiations for the projects financing and executing a term sheet for a $70 million loan. Gamma Real Estate Capital Management, Inc. Moreover, he has valuable experience in marketing and consulting that will likely benefit AFC. But based on 2020 data incorporated in SEC filings and assuming a 100% payout ratio. Understanding the new regulations regarding hemp licenses converting to cannabis licenses is essential, but we believe the states licenses are extremely valuable. I guess its hurt a little bit in terms of [business driven by] word of mouth, but because we have a 50-year history of doing this, were [easily vetted]. The lead director is affiliated rather than independent and appears to have a very close business relationship with the CEO. Another was that my father remarked to one of the borrowers that he liked his pen, and they said that showed the closeness of the relationshipI shit you not. Bloomberg Markets: China Open is the definitive guide to the markets in Hong Kong and on the mainland. The Kalikows arent exactly wet behind the ears when it comes to real estate lending. So, as a REIT, we need to have real estate as collateral. The first "independent" director, Alexander Frank, also worked at Fifth Street, from 2011 through 2017. By January 2016, the ERFAbacked by Kallos and Manhattan Borough President Gale Brewer as well as State Senator Liz Krueger and Councilman Dan Garodnickhad formed and filed its first rezoning application with the Department of City Planning, looking to cap the height of the building and also secure a section of the residential development for affordable housing units. As of February 15, theyve also reviewed 273 loans, 10 of which were funded; entered into non-binding term sheets for five more; began a syndication commitment letter for another; and were in the process of evaluating 23. JB: AFC Gamma is notably among a handful of cannabis-related companies listed on the Nasdaq. Half of the 26 counts were dropped before the trial, and over five days of hearings last November, the Southern District of New Yorks bankruptcy court held a trial regarding the remaining claims. It comprised a $145. The board of directors, meanwhile is led by Leonard M. Tannenbaum. I offered them options such as using their air rights in other parts of the city, Kallos added. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 10,000 investors around the world. Five of those six were trying to assess my strength and desire to hold itto see if they can get in at a cheap price.. Company/Fund Name: Gamma Real Estate Capital Management, Inc. We offer a flexible solution to meet the needs of our borrowers. Invision. So he understands the layers of complexity involved. They changed the bankruptcy law for real estate in 2005 to say that if youre a single real estate asset its a faster trackso, you as the developer cant tactically declare bankruptcy and indefinitely hold up your lender, Kalikow explained. Investors could realistically see a double or triple on their principal while earning a 6%-9% cash yield. Fortunately, WER's expertise is in the private institutional space. A cheating husband strangled his wife after she found his 'dirty' text messages to other women when he passed out following a binge on Coors Light and Jack Daniel's. Serial cheat Jonathan Neale . The legal relationship between the general partner, limited partner, and investment offering itself detailed, to say the least. Beninati also alleged that Gamma was not a lender but a partner and acted as equity, Kalikow said. I believe in completely disproportionate retaliation, Jonathan Kalikow told Commercial Observer, like Count of Monte Cristo, but to the 10th power. Every day I get complaints from residents about construction noise. Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. It was not a threat; it was a specific explanation of the fact that I had hoped that we could work together., One of the ways Kalikow believes Kallos followed through on what he thought was a threat was through the communitys increased use of 311 calls this past summer, specifically around the Fourth of July weekend, which invited greater scrutiny on the site. Why did your team decide to go public in March 2021, and have you noticed a shift in how cannabis stocks are viewed among institutional investors in the past year? In many ways, its approach is in between that of a Business Development Company and mREIT. It's not zero, but still. With license value being a component of our underwriting, we tend to focus on limited license states such as New Jersey, Florida, Pennsylvania, Ohio, to name a few. [The] Corcoran [Group], our sales team, will say, Oh, well people will go anywhere, and maybe they will, but my father would absolutely sell Fifth Avenue to move to Sutton [Place]. The estimated net worth of Jonathan Gilbert Kalikow is at least $1.52 million as of June 16th, 2022. Has the Foundation made any headway this year to support local communities? Anything you build thats residential proximateis going to be expensive. This unique partnership approach with each of our clients allows us to find solutions to help them expand and grow alongside them. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gamma's nationwide opportunistic real estate investment and hard money lending strategies. But, despite his past, he's not optimistic about. The company managed $5 billion of assets across multiple private investment vehicles and two publicly-traded business development companies. Learn More on Jonathan Gilbert Kalikow's trading history. JB: Cannabis companies of all sizes have been traditionally starved of access to capital most mom-and-pop and larger established businesses like MSOs cannot walk into a bank or financial institution and receive a loan. The interference made it difficult for Kulick to do his job, and he came. Williams Equity Research's founder has been analyzing institutional investment and operational due diligence for the last decade. While the community groups argue that the zoning law would protect the area from super-talls, Kalikow maintains it does nothing but protect the views of wealthy residents at The Sovereign, a 485-foot residential neighboring co-op. Gamma filed a complaint against Pilevsky, plus his sons Michael and Seth Pilevsky, for tortious interference, in a filing dated Sept. 16, 2016. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Greystone sells Lantana apartments to real estate mogul for $10M, Hialeah Gardens industrial site trades at $1M/acre, as market softens, Pasadena moves to eliminate planned development zoning, CF Industries relocates suburban HQ to Northbrook with slight downsize, LaSalle sells OC office building at 55% loss. Moving down the line, Tomer Tzur appears to be truly independent. Is this happening to you frequently? So he understands the layers of complexity involved. We feel good about its strength, although the number may fluctuate from time to time, and we look forward to continuing to advance the cannabis industry. Len, who serves as CEO of the AFC Gamma.and previously founded Fifth Street Asset Management, which he eventually sold to Oaktree, also founded LMT Investments, a single family office that is focused on allocating capital across various strategies, including credit via Tannenbaum Strategic Credit Fund, which is a $100M+ fund, equities and real estate. AFC Gamma executed an IPO on March 19, 2021. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. We see a lot of deals, and the biggest hurdle is continuing to find good operators to back, focusing on our due diligence and making sure that the investments that we're making are suitable solid investments. Founder of Gamma Real Estate Capital Management, Inc., Jonathan Kalikow presently occupies the position of President for Gamma Real Estate Capital Management, Inc. and Director & Head-Real Estate at AFC Gamma, Inc. Insiders at AFC Gamma own 28.0% of the company. Both markets have strong medical programs with a robust addressable market and population of patients. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. JB: AFC Gamma is currently located in Florida, the largest medical market in the U.S. are there any other medical markets or opportunities that seem like attractive targets? Learn More on Jonathan Gilbert Kalikow's age. Photo by pcess609/iStock via Getty Images. But imagine the combination of near total lack of competition and immense opportunity set. First, it's key to realize the uncertainty involved. This competition will drive down interest rates and attract borrowers like MSOs. Additional disclosure: WER is long STWD, BXMT, ABR, The #1 Service For Safe and Reliable REIT Income. Jonathan Kalikow and Leonard Tannenbaum AFC Gamma, a West Palm Beach-based real estate investment trust, now has $120 million in capital on hand to lend to cannabis operators. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. RT: AFC Gamma is a commercial mortgage REIT. RT: We're excited about New York, although there is some work to do. (Beninati, officials at Bauhouse Group and their legal counsel never returned COs requests for comment. Any person who is being bothered by construction at [the Sutton Place development] or at any site in my district, I ask them to call 311; I ask them to reach out to me personally. Information on this page was last updated on 6/17/2022. AFC Gamma, a West Palm Beach-based real estate investment trust, now has $120 million in capital on hand to lend to cannabis operators. Cannabis is a local business, where the operators become entrenched in the local communities providing jobs and revenue to the states. Beninati had a different perspective, describing Gammas role as active in court documents, saying that the lender demanded that the developers make dozens of changes to the project design, implementation and construction. The only other challenge is going to be that as capital comes back, we're going to have to either refinance those existing borrowers or deploy capital. And incorporating the largest residential mREITs similar to the construction of VanEck's Mortgage REIT Income ETF (MORT) still creates a yield of roughly 7.2%. Long-term, we would like to benefit the states that our borrowers operate in. We made one loan then we made a second loan to complete the purchase. Gamma provided an 18-month loan that then was refinanced with a seven-month, $147 million loan in June 2015. Serial cheat Jonathan Neale, 40, fell asleep by his front door a We knew it would provide us with a great head start and the ability to have the best cost of capital in the industry, which allows us to be competitive on pricing with our borrowers. Actor. Dr. Jonathan Eisenstat testifies during Alex Murdaugh's double-murder trial at the Colleton County Courthouse in Walterboro, South Carolina, on Feb. 27, 2023. Photo: Sasha Maslov/for Commercial Observer, I believe in completely disproportionate retaliation, Jonathan Kalikow told Commercial Observer, like, Kalikow, the 47-year-old married father of four girls ages 8, 10, 12 and 17, is the president of, Still, Gamma Real Estate nevertheless found itself embroiled in a real estate battle and forced into the spotlight after it financed, The Kalikows arent exactly wet behind the ears when it comes to real estate lending. Three to four months before the second loan matured, Beninati told Kalikow he had three potential buyers lined up for 3 Sutton Place with one lead candidate. From a cash flow perspective, our best estimate is that AFC generated $2.87 million over the period, or about $7 million annualized. They just need avoid certain types of relationships for at least three years. [Beninati] would have made $50 million after paying us off, had he done the sale, Kalikow said. We provide term loans, draw facilities, and construction loans. These companies can't even get bank accounts. All rights reserved. Companies like ourselves are known as commercial mortgage REITs which means we simply take a lien on the real estate as a lender. Create a free family tree for yourself or for Jonathan Kalikow and we'll search for valuable new information for you. FILE - Jonathan Majors poses for a portrait to promote the film "Magazine Dreams" at the Latinx House during the Sundance Film Festival on Friday, Jan. 20, 2023, in Park City, Utah. First of all, we take a unique partnership approach. Learn More about Jonathan Gilbert Kalikow's net worth. The Sovereign has taken the laboring oar, no doubt, but there are many buildings that have contributed substantially., One would assume that some of the shine would come off 3 Sutton Place amid the war raging around it, but Kalikow isnt walking away. Does AFC see lending opportunities in the California market, or do you typically shy away from the Golden State and facilitate deals in limited licensed states? Occupation. With the expansion of dispensaries, we believe those cultivation licenses will only become more valuable as well as the dispensary locations. There, he invested across industries and asset classes on behalf of institutions, family offices, and wealthy individuals as a proprietary trader at Morgan Stanley and then as a hedge fund portfolio manager and trader at various funds and firms. Our loan, plus the interestwell call it $185 million. This creates a very quick and reliable way to boost its cash flow from about $1.25 per share to $1.50-$1.75 in short order. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gammas nationwide opportunistic real estate investment and hard money lending strategies. [3] [4] He is also a voice artist. (The city must log and address each complaint as it relates to construction safety. A spokesman for the DOB said that between May 1 and Sept. 25, 18 DOB-related 311 complaints were made regarding the property. We tend to lend to operators in regulatory-friendly states, such as: Ohio, Pennsylvania, New York, New Jersey, Maryland, Massachusetts, Arizona, New Mexico, Missouri, Illinois, Michigan, and Nevada. Our platform includes a publicly-traded company, a private BDC and a network of Family Offices that allows us capacity to support portfolio companies over long periods of time. China Equity Emerging Markets Gold and Silver International Dividend US Dividend US Energy US High Dividend US Large Cap Growth US Large Cap Value US Mid Cap Growth US Mid Cap Value US REIT US Small Cap Growth US Small Cap Value US Sustainable (ESG) Len Tannenbaum: When I was 27, I founded Fifth Street, a finance company specializing in raising funds from private investors and investing in middle-market companies. Author's note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. LT: Right now, we are one of the biggest lenders in cannabis. Information is often lacking there, and one has to dig very deep to uncover the full picture. We weren't able to discern what type of healthcare companies were involved. This does offer investors an average amount of protection, though its still far from perfect. When youre looking at this building in the skyline as you come over the 59th Street Bridge, its center stage. The concept of AFC Gamma all started on the back of a napkin, and we quickly realized that to be successful, we needed another partner. Please. But he met with us, and it was clear that he did not intend to make the sale.. Get started New York City Marriages, 1950-2017. Kalikow, the 47-year-old married father of four girls ages 8, 10, 12 and 17, is the president of Gamma Real Estate and a man of real estate pedigree par excellence. Phone (212) 883-2420 Email General info@gcpbid.org Email Press press@gcpbid.org Note that AFC is receiving sizeable pain-in-kind interest on five of its loans. If we move to a fast-growing, small mREIT like Arbor Realty (ABR), the situation isn't much different. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. Learn More on Jonathan Gilbert Kalikow's contact information. One of his reasons [for believing this] was that we had attended a meeting at the architects office, and my father sat at the head of the table, Kalikow recalled. Jonathan Kalikow NY, age 52, female. Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gammas nationwide opportunistic real estate investment and hard money lending strategies. I sat down with Robyn and Len to talk about their cannabis lending upstart and its seemingly bright future ahead. Jonathan Kalikow President Gamma Real Estate Jonathan Kalikow serves as the President of Gamma Real Estate, an organization that he founded in 2015 to represent the fourth generation of his family's activity in real estate financing and development. Jonathan Scott i jego brat bliniak zadebiutowaliich pierwszy reality show, Property Brothers, w 2011 roku. Kalikow has reason to be angry. What is the teams strategy for building a diverse portfolio? Under the terms of the second loan, Beninati had to either find a partner or find a buyer for the development, according to Kalikow. Address: 101 Park Avenue, Suite 2602, New York, NY, 10178, United States Phone: 212-922-0222 Fax: 212-922-2121 Website: They're single or two-state operators, and we're typically coming in to help them build out licenses that they want or help them expand within that state. It has committed to lending another $30 million to existing borrowers and to two new borrowers, according to the release. Everything depends on management's creativity, flexibility, and ability to execute. The charities we evaluate are focused on causes that are important to our borrowers. He asked, What sell-out price are you using? and we replied, $4,000 a foot. He said, What if you use $7,000 a foot? We said that if you use $7,000 a foot you probably make half a billion dollars. Underwriting these operations and their creditworthiness will be no simple task. West Palm Beach-based REIT has so far provided $50M in financing to five borrowers. But common sense and statistical analysis does indicate greater risk of lower quality Board of Directors construction and efficacy. There's no perfect solution to this conundrum except to avoid externally managed companies. Looking to the future, though, if the SAFE Banking Act passes, we could see an influx of institutional capital that would increase competition amongst cannabis-specific and mainstream lenders. Between courses, he opined on some of New York Citys most buzzed-about projects: I like the Related [Companies] guys as individuals a lot, I really do, Kalikow said, but I dont really understand Hudson Yards. That isn't unfavorable given how challenging even the latter half of 2020 was. There, he invested across industries and asset classes on behalf of institutions, family offices, and wealthy individuals as a proprietary trader at Morgan Stanley and then as a hedge fund portfolio manager and trader at various funds and firms. It could also be positive for lenders assuming they have the infrastructure and capabilities to scale and decrease the cost of capital once the money starts flowing and more deals are being made. Originating senior secured loans to companies in the cannabis industry is its primary activity helping to finance land or buildings, equipment, licenses, and "other assets" that classify as colleterial to secure AFC's loans. We make loans to companies secured by three pillars: cash flows, licenses, and real estate. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. RT: Since starting AFC Gamma, we have completed almost $500 million of transactions we provide capital to an industry that others do not and, in turn, allow these operators to build cultivation facilities, production facilities, and dispensaries. We understood [Beninatis] shortcomings but we saw a lot of embedded value, Kalikow said.
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