Case Real Estate Capital, LLC (Case), a commercial real estate investment firm with discretionary capital, is marking its five-year anniversary with plans for further strategic growth. The northern N.J.-based company concentrates on deals in the $2.5 million to $40 million range for transitional assets located in the New York metro area and south Florida as well as in the Northeast and Mid-Atlantic regions.
“At Case, we have a disciplined approach, industry expertise and access to funding,” said Sanford Herrick, Case’s founder and managing principal. “Those core competencies enable us to continue providing situational capital to property owners and developers, even as many investors pull back due to questions on the economy and pace of interest rate hikes as well as vulnerabilities within the retail and office sectors. We remain focused on solving problems and creating opportunities for our clients.”
Since its establishment in 2013, Case has steadily expanded to meet the middle market’s need for situational capital. The company is active as a high-yield private lender; a financier of transitional properties; a purchaser of performing, sub- and non-performing debt; and a mezzanine and equity investor.
Notable transactions have included a bridge loan secured by a mixed-use land site in Bonita Springs, Fla. and a first mortgage bridge loan to facilitate the acquisition of a Woodbridge, N.J. site approved for construction of 355 residential units. In addition, Case finalized a direct property acquisition of a 16-unit rental building on the Bushwick/Bed-Stuyvesant border in Brooklyn, N.Y.
The principals of Case evaluate each loan, property acquisition and debt purchase based on its own particulars. Case’s note purchases have included three senior notes – two performing and one non-performing – secured by residential investment assets in Manhattan and suburban N.J.; two non-performing senior notes secured by retail and commercial assets; a non-performing senior note secured by a 105,560-square-foot industrial portfolio in the Hunts Points section of the Bronx, N.Y.; a senior note secured by an industrial building located in the Meadowlands and port submarket of Kearny, N.J.; and a note with final judgment of foreclosure secured by five multi-family/mixed-use assets in Bayonne and Jersey City, N.J.
Company’s Proven Record of Balancing Risk and Reward
With its tempered approach and focus on due diligence, Case has a track record of executing successful exit strategies, including most recently a complex $16 million first mortgage loan. Case worked closely for more than a year with the New York City-based borrower, which operates a chain of urology and general practice services and faced liquidity challenges after embarking on an overly ambitious expansion program. “Following a series of complicated issues, the loan went into technical default almost immediately,” explained Herrick.
The Case team, however, leveraged its combined decades of experience and worked with the experienced borrower – who was forthright and engaging – restructuring the debt, enabling a refinancing. The loan was secured by a 20,803-square-foot redevelopment site in Flushing, N.Y., where the borrower plans to construct a 12-story medical office building, an ambulatory surgery center and street-level commercial space.
“At the conclusion of our involvement, our principal was fully repaid,” noted Herrick. “The successful exit transaction is another example of Case’s expertise in funding complex and uniquely situational transactions in all facets of real estate.”
Case’s Experienced Team
The talented Case team includes Chris Mavros, the company’s CFO and principal, who possesses 20+ years of expertise in financial control and oversight of loan portfolios and their servicing. Mavros and Herrick have worked together for more than two decades. Kathie Ventura, who serves as administrator, brings extensive experience in client service and finance to her role at Case.
The company recently announced a key promotion and new hire to support its planned growth in 2019. On the executive level, Aysha Cox, who is based in the company’s south Florida office, has been promoted to vice president. She will take a leadership role in sourcing and originating loans, underwriting and managing the company’s diverse investment portfolio. In addition, Eric Hakim joined the company as an investment analyst. Previously, Hakim served as a quantitative equity/options analyst and assistant portfolio manager for Toro Fund, LP.
To further create opportunities for property owners and developers, Case launched a small loan program focusing on properties nearing stabilization. The company originates loans in the $2 million to $8 million range for all asset types.