Initially, the fund will buy discounted pools of commercial mortgage debt and originate first mortgage and mezzanine loans on high-quality commercial real estate properties. "We raised the fund to take advantage of the realignment of risk and reward going on now in the commercial real estate debt markets," Jonathan Kaye, co-founder of North River, tells GlobeSt.com. "We believed that if we could get a business started in this environment, it would benefit from deploying fresh capital at a time in the cycle when scarcity of financing allowed the highest returns for the lowest of risk levels."
Kaye continues that "to seize these opportunities, we have devised a strategy that is flexible enough to allow us to either acquire or originate quality commercial real estate-oriented financial assets, while actively enhancing the value of those assets. We view this as the first step in creating a long term platform for investment in the commercial real estate capital markets."
Kaye tells GlobeSt.com that the fund, which has an eight-year term, will lend on the following property types: office, warehouse, retail, multifamily, self-storage and manufactured housing; throughout the US. "There is tremendous illiquidity in the new loan origination market," he says. "The Fund will be able to capitalize on this lending gap by offering prudently underwritten and attractively priced first mortgage and mezzanine loans, as well as preferred equity to property owners."
The fund is managed by a team of seasoned commercial real estate underwriters, lenders and investors including Kaye, Avery Egert, president and CEO of the Sovereign Group, Jason Shukofsky, who most recently served as a SVP and head of underwriting at Capmark Finance Inc., and Richard Cadigan, an attorney with 10 years experience in structured finance.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
