Nova Capital Launches With $640M Financing Pipeline

Real estate veteran Steven Yazdani has launched Nova Capital, a new real estate capital advisory firm that will advise on a full suite of financial services. The firm launched in response to the strong investor demand for capital solutions in the market today, and already has $640 million in financing mandates in its pipeline. Its early deals include $100 million in refinancing of a class-A office building in Downtown Los Angeles, as well as a $25 million construction loan for a 110-unit development in Warner Center.

“With strong capital flows and ample investor demand in the current commercial real estate market, we recognized that now was the right time to launch Nova Capital,” Yazdani, managing director and founder of Nova Capital, tells GlobeSt.com. “Our team has been building relationships within the capital markets for nearly two decades. By drawing upon those relationships and leveraging high investor activity, we see the opportunity to build a company that can meet both current and future demand in the market.”

As investors remain in buy-mode, there continues to be a huge demand for financing partners; however, as the cycle matures, investors are also becoming more cautious and looking to diversify to mitigate risk. “Looking ahead, we recognize that capital sources continue to diversify,” says Yazdani. “As the cycle continues its maturation, most investors remain both optimistic and careful. Many of today’s investors are strategically diversifying portfolios and finding ways to lock in value for the long term. This activity is fueling the capital markets, giving lenders and equity providers of all types more opportunities for investments that meet their ever-changing criteria.”

The continues to be strong lender demand for quality deals, as well. “There is increasing competition among lenders, many of whom are offering non-recourse financing, bridge loans, better terms and more flexibility in order to compete. There is money available for all deals and product types,” says Yazdani. “Our strategy is to leverage this momentum to achieve the most creative and optimal solutions for our clients.”

The firm’s strong financing pipeline shows that the demand exists on both the capital and investor sides of the table. Yazdani says that it is also an example of the firm’s industry relationships. “Investment activity is extremely strong and is poised to remain so. This is a trend we’re seeing not only domestically, but throughout the globe,” he says. “According to a 2019 Industry Outlook by Deloitte, global commercial real estate transaction volume increased 13% year-over-year to $341 billion in just the first half of 2018. “The U.S. remains a prominent player in this global growth, and the strength of our project pipeline demonstrates that this growth is on track to continue.”

Nova Capital’s strong start has fueled strong goals. Yazdani aims to have $1 billion in transactions financed by 2021, and is looking to focus on construction deals. “Construction financing is a point of focus in the immediate future, especially as development soars in key markets such as Los Angeles and the San Francisco Bay Area,” he says. “Beyond that, we also aim to help Clients recognize opportunities to save money even in a rising interest rate environment. By working closely with both capital providers and borrowers, we can often identify new ways to finance projects that ultimately are better for both sides.”