Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. [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]. "As long as God keeps bringing me stories that I can honor him with, to me, it doesn't matter what genre they . Beninati also alleged that Gamma was not a lender but a partner and acted as equity, Kalikow said. Lending and banking are always timely topics in the cannabis business world, especially with federal reform and possible banking reform looming once again. The companies were formed over a five year period with the most recent being incorporated three years ago in February of 2019. 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. 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. 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. In return for the apartments, plus $150,000 in cash, the lawsuit alleges that the Pilevskys received an indirect equity interest. Please don't hesitate to contact us and let us know how we can assist. Jonathan Kalikow was born and raised in New York. Given its especially profitable, high-interest rate loans even somewhat expensive leverage will create a spread of at least 500 basis points and potentially 800-900. But imagine the combination of near total lack of competition and immense opportunity set. institutional investment and operational due diligence for the last decade. 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]. Add in the inherent complexity of mortgage REITs and the ever-changing nature of cannabis legislation and it's a worthy challenge. 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. RT: Two types of financing are available to cannabis operators. Erykah Badu Talks Cannabis Line That Badu With Cookies, NCAA Basketball Odds 2023: West Coast, Sun Belt, Horizon, MVC Tip Off Conference Tournaments, Puff Puff Pass-Ing Covid? One day later, Gamma sent Bauhouse notices of maturity defaults as well as a notice that it would conduct a foreclosure sale of the collateral the following month. Copyright 2023 Surperformance. Construction. To summarize the analysis of the board, the CEO is chairman. Given this "unique" arrangement and its direct impact on AFC's decision making it's time to put on our institutional due diligence officer hat. We provide term loans, draw facilities, and construction loans. [3] [4] He is also a voice artist. Since we aim to find and fund strong deals in everyone's best interestthose of our investors, our borrowers, and our own our stringent loan-selection process means that most potential borrowers don't make it past our review process. That's 40.74x the amount of originated and funded loans it had as of February 15, 2021. The roster of those who testified included Beninati, N. Richard Kalikow, JLLs Keith Kurland (as debt and equity adviser to Beninati, tasked with sourcing the projects financing) and Jon Kalikow. 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. "In Gamma's multifamily business, Jon Kalikow saw an opportunity to claim credit for Kulick's successes," the suit says. On Feb. 23 the motion was denied on the merits that the borrowers would not be irreparably harmed by the sale and that the equities favored allowing Gamma to enforce its contractual rights. JB: Although AFC Gamma is open to lending to all aspects of cannabis production, Im sure not all operators qualify for financing. He is survived by his wife of 52 years, Elizabeth; his daughter, Amy (Jonathan) Kalikow; his son, David H. (Lauren); a brother, Stanley; and six grandchildren. The commercial mortgage REIT also has a credit line of up to $40 million, freeing up a total of $120 million in capital. But, the surrounding community, two years into a fight against super-tall neighboring commercial buildings, is determined to halt the project. Performing as Jesus in The Chosen. 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. 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. But [Beninatis counsel] filed a document that said [3 Sutton Place] is not a single real estate asset. It yields 8.3% despite more than doubling in price in the past 12 months from $6.67 to $16.16. In many ways, its approach is in between that of a Business Development Company and mREIT. For those interested in making money off of cannabis financing, we can offer no alternative. 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. Moving down the line, Tomer Tzur appears to be truly independent. Companies like ourselves are known as commercial mortgage REITs which means we simply take a lien on the real estate as a lender. Jon Kalikow is President/Co-Founder at Gamma Real Estate. Get notified the next time Jonathan Gilbert Kalikow buys or sells AFC Gamma stock. Jonathan Roumie is drinking coffee. JB: Looking ahead this year, what will be AFC Gammas biggest hurdles to overcome, and are there any opportunities to look forward to? Are there any particular markets or segments that you two are excited about and why? 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. Jonathan Kalikow Board of Directors Gamma Real Estate Contact GCP encourages questions, feedback and suggestions from our local stakeholders and visitors alike. Heis also the editor of The Forbes Real Estate Investor., Thomas has also been featured in Barron's, Forbes Magazine, Kiplingers, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox., He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (based on page views) and has over 106,000 followers (on Seeking Alpha). While we strongly prefer internal management, having the opposite doesnt mean we automatically ignore a company. I was also in charge of investor relations at Fifth Street and was doing healthcare consulting while we both recognized the lending opportunities in cannabis. Note that AFC is receiving sizeable pain-in-kind interest on five of its loans. 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. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. Known for. With the expansion of dispensaries, we believe those cultivation licenses will only become more valuable as well as the dispensary locations. And no obvious conflicts of interest. That isn't unfavorable given how challenging even the latter half of 2020 was. 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. Mr. Kalikow specializes in what he terms "catalyst-driven markets with high barriers to entry," a strategy that he applies to Gamma's debt . 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. Robyn, who is co-partner and Head of Origination and Investor Relations formerly served as bead of investor relations at Fifth Street Asset Management and as a vice president in Healthcare mergers and acquisitions at CIT Group Inc. 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. 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? In this case, the fee to fire the external manager is three times the annual base management fee (1.5% of equity) and the annual incentive compensation (variable, but likely 2-6% of equity) based on the trailing 12-month period. This idea was discussed in more depth with members of my private investing community, iREIT on Alpha. He is president and founder of Gamma Real Estate, a boutique commercial real estate firm based in New York City. Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies.. The board of directors, meanwhile is led by Leonard M. Tannenbaum. Robert Levy, another independent director, has substantial experience in retail and multifamily commercial real estate. When you're lending to a Verano or an Acreage, you're not just lending to one state; you're lending to multiple states. Jonathan specializes in catalyst-driven markets with high barriers to . This unique partnership approach with each of our clients allows us to find solutions to help them expand and grow alongside them. We didnt make an error. . The suit also notes that another Pilevsky, Jordan, is a partner at said law firm. Founder of Gamma Real Estate Capital Management, Inc., Jonathan Kalikow is President at this company. That's considerably lower than the likes of Blackstone Mortgage Trust and Starwood Property Trust's (STWD) ~8% yields the two commercial mREIT heavyweights. As an institutional lender, we provide financial solutions to the cannabis industry. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. [Beninati] would have made $50 million after paying us off, had he done the sale, Kalikow said. 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. All Rights Reserved. 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. Simply put, its legally owed previously paid incentive fees to the external manager if adjusted capital isn't at least 7% higher than the end of the previous fiscal year. While the war ensued in the Downtown courtroom, another battle was flaring up with 3 Suttons zoning approvals. This is industry standard and in line with the likes of Blackstone Mortgage Trust (BXMT). And another sits on another one of his company's boards. After the sale, I took some time off and started a family office, and saw an arbitrage opportunity in the cannabis industry while researching investments. 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. But common sense and statistical analysis does indicate greater risk of lower quality Board of Directors construction and efficacy. The third tier is smaller operators. [Three Sutton Place] is in a residential neighborhood that we find unique, and it has these really strong water views, Kalikow said about Beninatis plan for a 950-foot tower when it first crossed his desk in 2014. (Beninati, officials at Bauhouse Group and their legal counsel never returned COs requests for comment. The company is now prepared to go forward with the towers construction, according to Kalikow. Im sure itll be successful because there are a lot of powerful people involved who are smarter than me, but I dont see us building new tunnels or bridges or subway lines any time soon., I tend to be a very under-the-radar person, Kalikow explained. Sale-leasebacks are where the REIT owns the real estate, and a cannabis operator is the tenant and leases it back. Three of the companies are still active while the remaining one is now listed as inactive. It will be a net positive for all operators. They purchased a total of 87,783 shares worth more than $1,380,633.40. 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