164 West 74th Street - Manhattan, NYNew York, NY Black Bear Asset Management LLC (BBAM) has launched a suite of new investments that signals the start of its 2017 strategy. BBAM, acting as advisor and principal investor, closed several deals in the final months of 2016 totaling $293.75 million:
• In December 2016, BBAM closed a $27 million refinancing of a 23-unit residential apartment building with a total valuation of $60 million in Midtown Manhattan. The property includes 8,000 s/f of retail space. In addition to building out the retail component to suit high-end retailers, the sponsors plan to use the refinancing proceeds to upgrade the façade, apartment interiors, and building mechanicals.
• In November 2016, BBAM provided $9.45 million in preferred equity to a premier full-service real estate developer to transform a landmarked Beaux-Arts building on Manhattan’s Upper West Side. The project — located at 164 West 74th St. — has a total capitalization of $51 million.
• In September 2016, BBAM closed a $7.3 million refinancing of two residential apartment buildings with a total valuation of $12.5 million, both with two ground-floor retail tenants, in the Park Slope section of Brooklyn. Since acquisition, the sponsors have repositioned two of the retail tenants and upgraded several rent-stabilized units to free market.
• In addition, BBAM provided advisory services on multiple debt-related investments totaling $250 million.
This collection of transactions sets the stage to scale BBAM’s strategy, centered on a balance of strategic equity and debt investments. In the coming months, BBAM plans to grow its footprint in the greater New York City area by issuing more than $100 million in preferred equity, mezzanine debt and other structured credit investments in the $2 million to $25 million range.
“We plan to scale by continuing to deploy our signature investment philosophy coupled with a focus on mid-market relationship lending,” said Arthur Bellini, managing partner at BBAM. “As the metropolitan real estate market approaches a plateau, subordinate debt provides attractive risk-adjusted returns more senior in the capital structure than equity investments and Black Bear Asset Management is well-positioned to take advantage of market opportunities, as well.”
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