In both transactions, the Manhattan-based firm brought its own capital, marketing expertise and development experience to the table in order to revive broken deals once considered hopeless by all parties involved, according to Arthur Fefferman, President of AFC Realty Capital.
"Real estate investment bankers are no longer merely financial intermediaries," says Mr. Fefferman. "These professionals now must be involved in every aspect of a transaction and become true financial architects in order to meet the needs of their clients."
AFC Realty Capital recently completed an assignment in the Historic District of Manhattan's TriBeca neighborhood to begin the construction and rehabilitation of an unusual high-end loft condominium building located at 112 Hudson Street between North Moore and Franklin Streets.
The firm joined with actor Robert DeNiro who had owned the property for several years to assist in transforming the existing, underutilized landmarked building into a residential project of five, high-end loft condominiums and 3,700 square-feet of ground floor commercial space.
AFC acting the fee developer and financier launched the $14 million project that included the redevelopment of an existing 19th Century five-story building together with a newly-constructed 6-story adjoining structure.
"By taking responsibility for all aspects of the development -- including obtaining approvals, retaining the architects and handling marketing and sales -- we were able to get the project off the ground and turn the asset into a economically viable and successful venture," Mr. Fefferman points out.
Construction has commenced on the development of the new building with completion expected in November. Housing units will include four full floor, finished residential loft condominiums -- each containing 2,200 square-feet of space -- and a duplex penthouse apartment with 2,865 sq.-ft. The ground floor will house a 3,700 sq. ft. retail commercial unit plus a basement area.
AFC also recently provided funding to complete a bankruptcy reorganization and restart the development of Philips Court at Headhouse Square, an enclave of 45 luxurious townhomes in the exclusive Society Hill neighborhood of Philadelphia. In order to complete financing, AFC Realty was required to sort through a foreclosure and bankruptcy on the part of the previous developer which had stalled the development of one of the City's largest remaining undeveloped residential sites.
"Originally opened in 2000, Philips Court debuted with promise as 12 units were pre-sold to an anxious buying public," Mr. Fefferman recalls. "However, substantial cost overruns and construction delays slowed the initial development dramatically, forcing the construction lender in 2002 to declare the loan due and foreclose on the property."
"We stepped in, rolled up our sleeves and began taking steps to resurrect the once promising project -- not only as financier, but also as a principal. "We sorted out all prior creditor claims, acquired the property for $7.1 million, secured new capital through both our own funds and third-party institutions and completed the Chapter 4 reorganization. The project is now well on the road to recovery."
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