Josh Zamir, founder of investment firm Capstone Equities, is expanding his company's portfolio with another commitment in the state of New York. The investor secured the non-performing loan on the Garden City Plaza office complex in Garden City. The original loan volume stood at $95 million, whilst the purchase price for the debt was $51 million. The loan was previously held by Bank of America.
The acquisition of the debt was partly funded by Maxim Capital, which provided a $41 million note-on-note financing facility. The Garden City Plaza site comprises four office buildings at 100 to 400 Garden City Plaza, totalling around 600,000 square feet in Nassau County. The property is owned by Treeline Properties. The sale of the debt was carried out collaboratively, allowing Treeline to remain involved in the property.
Collaborative workout strategy and swift execution
Zamir highlighted the strategic approach taken by Capstone Equities in such transactions. He noted that the firm deliberately positions itself as a cooperative lender that acquires loans at a discount and subsequently works alongside the borrower to develop viable solutions and tax-efficient structures. For exiting banks, this approach offers a dependable means of resolving exposures on short notice. The transaction for Garden City Plaza, including due diligence, was completed within just two weeks.
The transaction was arranged on the financing side by Iron Hound Management. A Newmark team comprising Brett Siegel, Josh King and Adam Spies advised on the loan purchase. The office complex immediately adjoins Simon Properties' Roosevelt Field Mall, the eleventh largest shopping centre in the United States, and benefits from direct transport links to New York City. In addition, Garden City is characterised by robust demographic fundamentals and a diversified economic base, in which the medical sector in particular is seeing noticeable growth.
Further expansion of Long Island presence
For Capstone Equities, the acquisition marks the 50th deal closed in the company's history, as well as its second major transaction in the Garden City submarket. Just days ago, the firm secured a $43 million refinancing from Goldman Sachs for Franklin Plaza, a four-building office complex comprising 488,835 square feet on Franklin Avenue on Long Island. Capstone had previously acquired the distressed debt on that asset as well.
Lender Maxim Capital has also been active in the market recently. In late October, the firm, led by Jason Bordenick, provided a $55 million loan for the recapitalisation of Juda Chetrit's 1384 Broadway property. That transaction was also structured by Iron Hound Management.
- —Acquisition of a $95 million non-performing loan for a purchase price of $51 million
- —Provision of a $41 million note-on-note financing facility by Maxim Capital
- —Four office buildings totalling around 600,000 square feet in Nassau County, Long Island
- —Continued involvement in partnership with existing owner Treeline Properties
