But, its 3 Sutton Place that has been the subject of the most industry chatter (and headaches for Kalikow) over the past couple of years, and the embattled property isnt out of the woods yet. To build the cloud-piercing tower he envisioned, Beninati would have to buy those buildings (for $32 million), empty them of their rental tenants, demolish them and buy 267,000 square feet of air rights from other properties. AFC Gamma executed an IPO on March 19, 2021. Not until the grandfather issue is resolvedone way around a zoning change would be to be grandfathered in to previous zoning lawsIm happy to take a profit because there is some deal fatigue. Author's note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Contact Jonathan + Leaflet Gamma Real Estate 101 Park Ave New York, NY, 10178-0002 Cost Oh, and there was a bankruptcy filing in between. In AFC's case, there is an incentive compensation clawback provision in the management agreement. Beninati had a different perspective, describing Gammas role as active in court documents, saying that the lender demanded that the developers make dozens of changes to the project design, implementation and construction. Add in the inherent complexity of mortgage REITs and the ever-changing nature of cannabis legislation and it's a worthy challenge. Len Tannenbaum: When I was 27, I founded Fifth Street, a finance company specializing in raising funds from private investors and investing in middle-market companies. There are corporate governance concerns, but the portfolio is highly profitable and suited to grow very quickly. RT: We are fortunate to have support from a robust institutional investor base that understands the cannabis market. RT: We're excited about New York, although there is some work to do. And, with few exceptions, companies involved are heavily excluded from the financial system. ), I am proud of it, Kallos responded cheerfully to Kalikows accusation that he urged residents to call 311. About Jonathan Learn Jonathan's areas of practice. Jonathan Kalikow NY, age 52, female. But if admittedly a big if its portfolio grows to a couple billion in the next few years while enjoying current economic conditions. Includes Age, Location, Address History for Jonathan Kalikow; Arrest, Criminal, & Driving Records . So he understands the layers of complexity involved. Since we underwrite loans based on three pillars: cash flows, licenses and real estate, it doesn't make sense for us to focus our efforts in those states. Cannabis is a rapidly growing industry. The Sovereign has taken the laboring oar, no doubt, but there are many buildings that have contributed substantially., One would assume that some of the shine would come off 3 Sutton Place amid the war raging around it, but Kalikow isnt walking away. 4 individuals in legal/underwriting/accounting. We believe even more institutions will enter the industry over time, given the growth the industry is experiencing. Jonathan Kalikow was born and raised in New York. Live market coverage co-anchored from Hong Kong and New York. The hurdle rate or minimum amount of core earnings produced on a percentage basis applicable to the performance fee (otherwise known as the incentive fee or carried interest) paid to the external manager is 2% per quarter. Understanding the new regulations regarding hemp licenses converting to cannabis licenses is essential, but we believe the states licenses are extremely valuable. Both Robyn and I knew that being listed on NASDAQ would be crucial to our success. After all, this started out as a beautiful dream. Jonathan Scott i jego brat bliniak zadebiutowaliich pierwszy reality show, Property Brothers, w 2011 roku. Jonathan Kalikow Overview Jonathan Kalikow has been associated with four companies, according to public records. There are so many great opportunities to put capital to work with good borrowers. AFC is externally managed, which isn't unusual for an mREIT. "I love Jesus and it is the honor of my life to get to portray him," he said. Get New Jersey Jewish News's Newsletter by email and never miss our top stories Free Sign Up Services were held Feb. 11 with arrangements by Bernheim-Apter-Kreitzman Suburban Funeral . Awards. Jonathan Gilbert Kalikow has not been actively trading shares of AFC Gamma during the past quarter. 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. New York, NY 10178 | (212) 9220222 |. Jonathan Kalikow is currently associated with one company, according to public records. (Kalikow was insistent that he does not loan to own, even if that turned out to be the case for 3 Sutton Place. The firm lends on real estate nationwide, owns a portfolio of . Sale-leasebacks are where the REIT owns the real estate, and a cannabis operator is the tenant and leases it back. Above that threshold, the manager receives 20% of core earnings, with a few strings attached. Learn More on AFC Gamma's active insiders. "In Gamma's multifamily business, Jon Kalikow saw an opportunity to claim credit for Kulick's successes," the suit says. Robert Levy, another independent director, has substantial experience in retail and multifamily commercial real estate. A New Cannabis Dating Service Might Solve Your Financial Needs, Golf Odds, Picks And Props: 2023 Arnold Palmer Invitational Betting Preview, Most GOP Voters Support Weed Legalization, Says New Poll, Advanced Flower Capital Gamma (AFC Gamma). So, to make things even easier we said [to Beninati] wed give him back all of his cash invested in the property, and if we sold the property within a year, wed give him 20 or 25 percent above a threshold so he could retain a portion. Everything depends on management's creativity, flexibility, and ability to execute. All rights reserved. SUITE 1770, WEST PALM BEACH FL, 33401. Jonathan Kalikow 's Gamma Real Estate allegedly used an $83 million real estate loan and fraud to seize a massive real estate project near Dallas worth more than $500 million, according to a lawsuit filed by the ousted developer.. Stanley Thomas, who led the Wade Park Land Holdings mixed-use development, says Kalikow manipulated him for about two years before laying claim to the complex . As of February 15, theyve also reviewed 273 loans, 10 of which were funded; entered into non-binding term sheets for five more; began a syndication commitment letter for another; and were in the process of evaluating 23. Our loan, plus the interestwell call it $185 million. We believe its well-positioned to profitably capitalize on the almost completely untapped market of financing cannabis projects. What Could Elon Musk Possibly Be Thinking? And no obvious conflicts of interest. All Rights Reserved. Jackie Bryant: Len, Robyn, whats your background, and what were you doing before jumping into the world of cannabis? Practically speaking, the higher the hurdle rate, the lower the fees paid but the greater the incentive for the external manager to take outsized risk. It could also be positive for lenders assuming they have the infrastructure and capabilities to scale and decrease the cost of capital once the money starts flowing and more deals are being made. A spokesman for the DOB said that between May 1 and Sept. 25, 18 DOB-related 311 complaints were made regarding the property. I think theres a group of potential buyers that would find living in that area exciting, he said. Pennsylvania Senators also discussed the potential for recreational for the first time at a GOP-led committee hearing in February. Actor. The legal relationship between the general partner, limited partner, and investment offering itself detailed, to say the least. Three of the companies are still active while the remaining one is now listed as inactive. Employment Details. But he met with us, and it was clear that he did not intend to make the sale.. The only way to advance the communities that our borrowers serve is by ensuring all residents have the opportunity to succeed. I'd classify two of the seven as truly independent. Chart Data in Insider Trading History Table. 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. Fortunately, WER's expertise is in the private institutional space. Still, Gamma Real Estate nevertheless found itself embroiled in a real estate battle and forced into the spotlight after it financed Joseph Beninatis Bauhouse Groups 87-story residential development at 3 Sutton Place between East 57th and East 58th Streets. Insiders at AFC Gamma own 28.0% of the company. And Beninati and his business partner Chris Jones had plenty of experience raising millions of dollars in financing, having overseen several large-scale development projects totaling $4 billion, according to the post-bankruptcy trial memorandum of decision dated Dec. 1, 2016. Current address 215 E 68th St #2M, NY, NY 10065 $3,040: B. Jonathan Kalikow Partner, Head of Real-Estate BIO Brett Kaufman Chief Financial Officer and Treasurer BIO Gabe Katz Chief Legal Officer BIO James Velgot Chief Marketing Officer BIO Christopher Gioia Managing Director, Head of Origination BIO Brandon Hetzel Executive VP BIO Edwin Gomez Director BIO Carly Hooker Director BIO Professionals Anything you build thats residential proximateis going to be expensive. Cannabis is a local business, where the operators become entrenched in the local communities providing jobs and revenue to the states. 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. AFC Gamma Inc.'s story has two major milestones, the first of which occurred on August 17, 2020. Leonard founded the firm and remains as chairman and CEO. We don't just want to be there for the company's first financing. Pilevsky says, We know how to deal with lenders, well handle this for you. So they try to get an injunction to stop the foreclosure.. And this offer includes a 2-Week FREE TRIAL plus my FREE book. Mr. Kalikow is AFC's Head of Real Estate as well as a member of the AFC Board. The most investor-friendly board of directors in the world will still hesitate to fire a terribly performing external manager if its too costly. Jonathan Kalikow President Gamma Real Estate. Out of curiosity, how many potential deals has AFC Gamma vetted since its inception, and how many made it to funding or commitment? We also remain very optimistic about the prospects in New Jersey and New York. 3-min read. This is industry standard and in line with the likes of Blackstone Mortgage Trust (BXMT). Between courses, he opined on some of New York Citys most buzzed-about projects: I like the Related [Companies] guys as individuals a lot, I really do, Kalikow said, but I dont really understand Hudson Yards. So, as a REIT, we need to have real estate as collateral. We offer a flexible solution to meet the needs of our borrowers. Image Source; Jonathan Roumie's Instagram. All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Greystone sells Lantana apartments to real estate mogul for $10M, Hialeah Gardens industrial site trades at $1M/acre, as market softens, Pasadena moves to eliminate planned development zoning, CF Industries relocates suburban HQ to Northbrook with slight downsize, LaSalle sells OC office building at 55% loss. LT: Throughout my career, I've been fortunate to have significant experience with taking companies public to date, I've taken four companies public, including AFC Gamma. I am not receiving compensation for it (other than from Seeking Alpha). Join iREIT on Alpha today and get a "front row seat" to our "March Madness" REIT Bracketology series where we break down each property sector to arrive at the "Sweet 16 REITs" to own. China Equity Emerging Markets Gold and Silver International Dividend US Dividend US Energy US High Dividend US Large Cap Growth US Large Cap Value US Mid Cap Growth US Mid Cap Value US REIT US Small Cap Growth US Small Cap Value US Sustainable (ESG) In its suit against the Pilevskys, Gamma said that the delay allowed groups like the East River Fifties Alliance (ERFA) to organize against its development. Investors have flocked to states with legal recreational use, with some investment firms opening offices and making moves in states where legalization looms on the horizon. Roumie said he was drawn to both "The Chosen" and "Jesus Revolution" because of their scripts and characters, which "spoke to his heart.". We decided to partner with our borrowers to find charities that support people in the given state that they operate in to support the local communities. Another was that my father remarked to one of the borrowers that he liked his pen, and they said that showed the closeness of the relationshipI shit you not. Learn More on AFC Gamma's active insiders. While not necessarily unusual, this potentially augments Leonard's already powerful decision-making ability even further. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. (Beninati, officials at Bauhouse Group and their legal counsel never returned COs requests for comment. The corporate mailing address for Mr. Kalikow and other AFC Gamma executives is 525 OKEECHOBEE BLVD. Gammas lawsuit firstly alleges that Philip Pilevsky caused Prime Alliance Group (of which he is president) to lend Beninati $50,000 to retain a law firm, LaMonica, Herbst & Maniscalco, to file a bankruptcy petition which then prevented Gamma from executing the foreclosure sale. Back then, the site was comprised of three low-rise apartment buildings. But before getting there, its worth examining the origins. 101 Park Avenue, 11th fl. Occupation. The charities we evaluate are focused on causes that are important to our borrowers. 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 Gammas nationwide opportunistic real estate investment and hard money lending strategies. Jonathan Kalikow and Leonard Tannenbaum AFC Gamma, a West Palm Beach-based real estate investment trust, now has $120 million in capital on hand to lend to cannabis operators. Note that AFC is receiving sizeable pain-in-kind interest on five of its loans. Theyve also directly structured over $10 billion in loan transactions and taken three companies public. But it is obtaining very compelling internal rates of return on its loan investments. Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. And tell me more about your approach to lending, what do you look out for and why? Its lowest cash interest rate charged is 12%; the highest is 16%. I wrote this article myself, and it expresses my own opinions. Mr. Harrison is currently Senior Operating Partner at Merida Capital Partners, "a private equity firm specializing in the cannabis ecosystem.". At the end of trial, one of their defenses was they never read the documents that they signed.. Overnight on Wall Street is daytime in Asia. LT: We have not currently made any loans to operators in California, Washington, Oregon or Oklahoma. Following the completion of the transaction, the director now directly owns 97,500 shares of the company's stock, valued at $1,522,950. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. The complaint alleges that the three of them, as strangers to the project, caused Beninati to breach contractual obligations following his maturity defaults and helped him file for bankruptcy in a scheme to benefit themselves and obtain an ownership interest in [3 Sutton Place]., Were suing Pilevsky for over $100 million, Kalikow said. (The city must log and address each complaint as it relates to construction safety. Jonathan Neale strangled his wife after he passed out drunk on the floor. His estimated net worth is $600000. In return for the apartments, plus $150,000 in cash, the lawsuit alleges that the Pilevskys received an indirect equity interest. Most recent being incorporated three years ago in February requests for comment know how to deal with,! And in line with the likes of Blackstone mortgage Trust ( BXMT ) ; Arrest, Criminal &! Pain-In-Kind interest on five of its loans 's expertise is in the local providing... 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