It engages in cash-flow lending like a BDC but incorporates its borrowers real estate value like an mREIT. Is this an April Fools Day joke? . We have asked all our borrowers to provide us with two to three charities they are passionate about, and we are currently evaluating our first few charities and going through the vetting process. What we thinkand again, we dont knowis that Pilevsky believed that we had used leverage like everybody else does on [this type of] loan.. The estimated net worth of Jonathan Gilbert Kalikow is at least $1.52 million as of June 16th, 2022. 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. This article was coproduced with Williams Equity Research (WER). There were so many little fights during this war. Lead director Thomas Harrison isnt independent and was on Fifth Streets board as well. Three of the companies are still active while the remaining one is now listed as inactive. 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 . The DOB was doing their job. Fortunately, WER's expertise is in the private institutional space. David Ingles and Yvonne Man bring you the latest news and analysis to get you ready for the trading day. Above that threshold, the manager receives 20% of core earnings, with a few strings attached. Actor. Bauhouse Group likely will not see any proceeds from sale of controversial East Side site We see relatively heavy volume on the day of the IPO, though that quickly subsided. Learn More on AFC Gamma's active insiders. (Beninati, officials at Bauhouse Group and their legal counsel never returned COs requests for comment. The company is co-founded by Robyn and Len Tannenbaum along with Jonathan Kalikow. If you have an ad-blocker enabled you may be blocked from proceeding. Moreover, he has valuable experience in marketing and consulting that will likely benefit AFC. We see a lot of deals, and the biggest hurdle is continuing to find good operators to back, focusing on our due diligence and making sure that the investments that we're making are suitable solid investments. If we move to a fast-growing, small mREIT like Arbor Realty (ABR), the situation isn't much different. And tell me more about your approach to lending, what do you look out for and why? And this offer includes a 2-Week FREE TRIAL plus my FREE book. But this experience could aid her in assisting AFC as partner, head of origination, and investor relations. JB: What does the competitive landscape look like for AFC Gamma? Most recently, shes been advising on mergers and acquisitions and leveraging finance transactions in the healthcare sector at CIT Group. AFC's distribution yield would be 5.9% at today's $21 per share. Performing as Jesus in The Chosen. We were at the meeting doing our due diligence and checking on the project like any good lender would. Roumie, too, is deserving of all the love and encouragement he is receiving. RT: AFC Gamma is a commercial mortgage REIT. Phone (212) 883-2420 Email General info@gcpbid.org Email Press press@gcpbid.org The first type is known as a sale-leaseback, which was around before loans were available. Kalikow, the 47-year-old married father of four girls ages 8, 10, 12 and 17, is the president of Gamma Real Estate and a man of real estate pedigree par excellence. You have the large publicly traded MSOs we have lent to, such as Verano. And of the four directors classified as independent, one worked under said CEO as recently as 2017. 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. 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. The most recent insider tranaction occured on June, 17th when CEO Leonard M Tannenbaum bought 5,000 shares worth more than $79,250.00. For now, Kalikows eyes are firmly on the finish line. He is president and founder of Gamma Real Estate, a boutique commercial real estate firm based in New York City. "In Gamma's multifamily business, Jon Kalikow saw an opportunity to claim credit for Kulick's successes," the suit says. But, the surrounding community, two years into a fight against super-tall neighboring commercial buildings, is determined to halt the project. Last but not least then, we have Jodi Hanson Bond, whos been serving as a corporate director at Fifth Street since March 2017. In July 2016, Beninati brought a 26-count lawsuit against Gamma, alleging improper conduct and that Gamma breached contracts between the two parties. in the cannabis industry in states that have legalized medicinal and/or adult use cannabis.". This chart shows Jonathan Gilbert Kalikow's buying and selling at AFC Gamma by year and by quarter. West Palm Beach-based REIT has so far provided $50M in financing to five borrowers. We find solutions to help them expand and meet their needs versus roadblocks. We also remain very optimistic about the prospects in New Jersey and New York. Address: 101 Park Avenue, Suite 2602, New York, NY, 10178, United States Phone: 212-922-0222 Fax: 212-922-2121 Website: We have it in our [loan] documents that if you do anything to fight a foreclosure youre fully personally liable, but if you turn over the deed, youre not personally liable, Kalikow said. Youre not winning this one.. Lending and banking are always timely topics in the cannabis business world, especially with federal reform and possible banking reform looming once again. Bauhouse also alleged that Gamma had a different motivation than a traditional lender and seized greater control by refusing to fund the project in accordance with loan documents. Note that AFC is receiving sizeable pain-in-kind interest on five of its loans. We want to be there for the company's second and third financing. Following the completion of the transaction, the director now directly owns 97,500 shares of the company's stock, valued at $1,522,950. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. So the portfolio isn't as robust in a rising interest-rate environment. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. By January 2016, the ERFAbacked by Kallos and Manhattan Borough President Gale Brewer as well as State Senator Liz Krueger and Councilman Dan Garodnickhad formed and filed its first rezoning application with the Department of City Planning, looking to cap the height of the building and also secure a section of the residential development for affordable housing units. There, he invested across industries and asset classes on behalf of institutions, family offices, and wealthy individuals as a proprietary trader at Morgan Stanley and then as a hedge fund portfolio manager and trader at various funds and firms. Both markets have strong medical programs with a robust addressable market and population of patients. This building [101 Park Avenue] is next to Grand Central [Terminal], whereas it could take you another 40 minutes to get over there. 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. Additionally, I believe on a macro-level, that by providing capital to an industry that many other companies cant or wont lend to, we are bolstering credibility and legitimacy to the industry, setting it up for success well before legalization. The suit also notes that another Pilevsky, Jordan, is a partner at said law firm. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. The only way to advance the communities that our borrowers serve is by ensuring all residents have the opportunity to succeed. Not to mention its proximity to the FDR Drive, to Connecticut, to the airports and to the Hamptons. We didnt make an error. . Gamma filed a complaint against Pilevsky, plus his sons Michael and Seth Pilevsky, for tortious interference, in a filing dated Sept. 16, 2016. On Feb. 17, 2016, Bauhouse filed a suit seeking a preliminary injunction to stop the foreclosure sale. The firm lends on real estate nationwide, owns a portfolio of . Robyn Tannenbaum: Before cannabis, I was a healthcare investment banker for eight years focused on M&A and leveraged finance. The legal relationship between the general partner, limited partner, and investment offering itself detailed, to say the least. I think, from the outset, most of the competition will come from hedge funds, not big banks. Get started New York City Marriages, 1950-2017. New York, NY 10178 | (212) 9220222 |. Most recently, on Thursday, June 16th, Jonathan Gilbert Kalikow bought 57,600 shares of AFC Gamma stock. Prior to co-founding Gamma, Jonathan Kalikow spent 18 years on Wall Street. So he understands the layers of complexity involved. Last December, Gamma filed plans for its own 844-foot, 67-story tower at 3 Sutton Place, for which construction has recently commenced. When Bauhouse filed its plans for the 87-story tower, Sutton Place locals made a bid for a zoning change that would block super-tall skyscrapers in Sutton Place. In many ways, its approach is in between that of a Business Development Company and mREIT. One day later, Gamma sent Bauhouse notices of maturity defaults as well as a notice that it would conduct a foreclosure sale of the collateral the following month. Create a free family tree for yourself or for Jonathan Kalikow and we'll search for valuable new information for you. All rights reserved. Like Beninati and Bauhouse, the Pilevskys did not respond to COs requests for comment. He also holds a JD from Fordham University School of Law and is a member of the New York State Bar Association. Occupation. They were a Florida operator that we backed in November 2020 and provided capital to build out their Indiantown cultivation facility. [The] Corcoran [Group], our sales team, will say, Oh, well people will go anywhere, and maybe they will, but my father would absolutely sell Fifth Avenue to move to Sutton [Place]. This is a BETA experience. The only count left was criminal usury, for which the court ruled that the building loan had a rate higher than the New York statute. We tend to lend to operators in regulatory-friendly states, such as: Ohio, Pennsylvania, New York, New Jersey, Maryland, Massachusetts, Arizona, New Mexico, Missouri, Illinois, Michigan, and Nevada. As for margins, theyre quite strong. We also talked to them about the fact that the rezoning we were proposing would actually give them additional floor area ratio on sitethat wasnt on site and already therein order to build affordable housing. AFC Gamma is a commercial mortgage REIT that provides loans to companies secured by three pillars: cash flows, licenses, and real estate. When you're lending to a Verano or an Acreage, you're not just lending to one state; you're lending to multiple states. Her educational and professional background are impressive, just unrelated to cannabis, marketing, commercial real estate, or any other area we consider core to AFCs business. Moving down the line, Tomer Tzur appears to be truly independent. Company/Fund Name: Gamma Real Estate Capital Management, Inc. While the war ensued in the Downtown courtroom, another battle was flaring up with 3 Suttons zoning approvals. 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. But common sense and statistical analysis does indicate greater risk of lower quality Board of Directors construction and efficacy. We don't just want to be there for the company's first financing. JB: Cannabis companies of all sizes have been traditionally starved of access to capital most mom-and-pop and larger established businesses like MSOs cannot walk into a bank or financial institution and receive a loan. The rest are likely or highly likely to be disproportionately influenced by the CEO due to past or ongoing outside business relationships. The commercial mortgage REIT also has a credit line of up to $40 million, freeing up a total of $120 million in capital. Investors could realistically see a double or triple on their principal while earning a 6%-9% cash yield. Mr. Kalikow is a graduate of the Wharton School of Business with degrees in Real Estate and Finance. In this case, the fee to fire the external manager is three times the annual base management fee (1.5% of equity) and the annual incentive compensation (variable, but likely 2-6% of equity) based on the trailing 12-month period. The Ohio medical program patient community has grown 87% from 2020 to 2021, and the Pennsylvania medical program patient community has grown 313% from 2020 to 2021. These companies can't even get bank accounts. Invision. Jonathan Roumie is drinking coffee. In customary fashion, underwriters were granted the option to purchase another 937,000 shares at the IPO price, less underwriting discounts and commissions. Are there any notable success stories that resulted from your funding? And that's the point where things start looking quite attractive for AFC. Employment Details. These comparisons contain one major weakness: AFCG has no leverage. [Three Sutton Place] is in a residential neighborhood that we find unique, and it has these really strong water views, Kalikow said about Beninatis plan for a 950-foot tower when it first crossed his desk in 2014. The concept of AFC Gamma all started on the back of a napkin, and we quickly realized that to be successful, we needed another partner. Still, I would say that we continue to focus on limited license states and the buildout of new states such as Georgia, which has six licenses awarded that will be a home run state for those six operators. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. The higher end of that range equates to an 8.3% yield. While the community groups argue that the zoning law would protect the area from super-talls, Kalikow maintains it does nothing but protect the views of wealthy residents at The Sovereign, a 485-foot residential neighboring co-op. Background Report for Jonathan Kalikow. Serial poda za duetem, ktry poszukuje, negocjuje, kupuje i odnawia zniszczone domy w imieniu klientw. RT: Since starting AFC Gamma, we have completed almost $500 million of transactions we provide capital to an industry that others do not and, in turn, allow these operators to build cultivation facilities, production facilities, and dispensaries. ), I am proud of it, Kallos responded cheerfully to Kalikows accusation that he urged residents to call 311. Just last month, AFC Gamma successfully sold 6.25 million shares of common stock at $19 per share. Gamma has originated billions of dollars of loans on hundreds of properties over the past half-century. Opinions expressed by Forbes Contributors are their own. There are corporate governance concerns, but the portfolio is highly profitable and suited to grow very quickly. Do you know what youre doing? I think I said, You have to be kidding me? she said. Leonard founded the firm and remains as chairman and CEO. LT: From January 1, 2020, through December 24, 2021, we have reviewed 443 deals and have funded 21 loans. New York City . Originating senior secured loans to companies in the cannabis industry is its primary activity helping to finance land or buildings, equipment, licenses, and "other assets" that classify as colleterial to secure AFC's loans. AFC Gamma, Inc. has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. This is industry standard and in line with the likes of Blackstone Mortgage Trust (BXMT). He is survived by his wife of 52 years, Elizabeth; his daughter, Amy (Jonathan) Kalikow; his son, David H. (Lauren); a brother, Stanley; and six grandchildren. He's spent his entire life here and his family's real estate roots run four generations deep. But weve been very under the radar when it comes to lending. We offer a flexible solution to meet the needs of our borrowers. Is this happening to you frequently? Theres generally no 10-Qs or 10-Ks to analyze. This is clearly an extremely speculative play. But before getting there, its worth examining the origins. Copyright 2023 Surperformance. AFC Gamma works with cannabis companies nationwide. The stock was acquired at an average cost of $15.62 per share, with a total value of $899,712.00. (The city must log and address each complaint as it relates to construction safety. The roster of those who testified included Beninati, N. Richard Kalikow, JLLs Keith Kurland (as debt and equity adviser to Beninati, tasked with sourcing the projects financing) and Jon Kalikow. If I want to buy it, Ill buy it, but I want the borrowers to be successful at the end of the day, he said.). 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. 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 . And no obvious conflicts of interest. "As long as God keeps bringing me stories that I can honor him with, to me, it doesn't matter what genre they . Are there specific deals the team tends to focus on more? Jonathan specializes in catalyst-driven markets with high barriers to entry, which he now applies to Gamma's nationwide opportunistic real estate investment and hard money lending strategies. 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