Emerald Creek Capital provides two bridge loans totaling $5.185 million

According to private equity fund, Emerald Creek Capital, it 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 $3.81 million construction completion loan secured by 15 condominiums in the Williamsburg neighborhood. This transaction was the second loan Janson has provided in 2011 involving condominium development. Jeff Seidler, a senior vice president at Emerald Creek, said, "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 Janson also funded a $1.375 million loan to an established real estate investment firm for the purchase of a 31,000 s/f retail center in Indianapolis, Ind. 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" said 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 a lock up period and therefore the borrower can replace the bridge loan with conventional financing once they have executed their business plan and stabilized the asset. In another recent transaction, Seidler provided an acquisition rehabilitation loan with the security of a multifamily dwelling on Grove St. in Jersey City, N.J. 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). "Although we prefer larger loans, Emerald is willing to put the work in for the right transaction and relationship", explains Mr. Seidler.